MGM Resorts International (NYSE:MGM) Shares Gap Down Following Analyst Downgrade

Shares of MGM Resorts International (NYSE:MGM) gapped down before the market opened on Thursday after Susquehanna lowered their price target on the stock from $55.00 to $46.00. The stock had previously closed at $37.85, but opened at $33.87. Susquehanna currently has a positive rating on the stock. MGM Resorts International shares last traded at $34.1850, with a volume of 3,302,668 shares trading hands.

MGM has been the subject of several other reports. JPMorgan Chase & Co. lifted their target price on shares of MGM Resorts International from $46.00 to $53.00 and gave the stock an “overweight” rating in a report on Friday, June 12th. Mizuho set a $55.00 price target on shares of MGM Resorts International in a research report on Thursday. HSBC upgraded shares of MGM Resorts International to a “strong-buy” rating in a report on Thursday, July 30th. Stifel Nicolaus reiterated a “hold” rating and set a $49.00 target price (up from $48.00) on shares of MGM Resorts International in a research note on Monday, June 15th. Finally, Wells Fargo & Company raised MGM Resorts International from an “underweight” rating to an “equal weight” rating and lifted their target price for the stock from $33.00 to $48.30 in a report on Tuesday, July 7th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $52.24.

Key Headlines Impacting MGM Resorts International

Here are the key news stories impacting MGM Resorts International this week:

• Positive Sentiment: Capital One raised its price target on MGM from $53 to $57 and maintained an “overweight” rating, implying substantial upside from the current trading level.
• Positive Sentiment: Susquehanna lowered its target from $55 to $46 but retained a positive rating, indicating that analysts still see meaningful upside despite the failed deal.
• Neutral Sentiment: MGM’s board confirmed its commitment to executing the company’s strategy as a standalone business after People Inc. withdrew its proposal. MGM Resorts board confirms standalone strategy
• Negative Sentiment: The failed takeover eliminates the immediate possibility of a deal near the reported $48.30-per-share proposal, likely weighing on investor expectations and the stock’s valuation. Barry Diller withdraws MGM bid
• Negative Sentiment: A securities law firm announced an investigation related to Diller’s proposal, adding a potential legal and governance overhang. The announcement is an investigation notice, not a finding of wrongdoing. MGM investor investigation announcement

Institutional Investors Weigh In On MGM Resorts International

A number of large investors have recently made changes to their positions in MGM. International Assets Investment Management LLC bought a new position in MGM Resorts International in the 1st quarter worth $30,000. Optiver Holding B.V. purchased a new position in shares of MGM Resorts International during the 1st quarter valued at about $35,000. Fiduciary Financial Advisors purchased a new position in shares of MGM Resorts International during the 2nd quarter valued at about $48,000. Global Retirement Partners LLC bought a new position in shares of MGM Resorts International during the 2nd quarter valued at approximately $53,000. Finally, Freestone Grove Partners LP purchased a new stake in MGM Resorts International in the 2nd quarter worth approximately $62,000. 68.11% of the stock is currently owned by institutional investors.

MGM Resorts International Stock Performance

The company has a current ratio of 1.34, a quick ratio of 1.30 and a debt-to-equity ratio of 1.80. The company has a market cap of $8.59 billion, a P/E ratio of 20.67, a PEG ratio of 1.99 and a beta of 1.28. The business’s 50 day simple moving average is $42.88 and its 200 day simple moving average is $41.81.

MGM Resorts International (NYSE:MGM) last announced its quarterly earnings data on Wednesday, July 29th. The company reported $0.59 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.56 by $0.03. MGM Resorts International had a net margin of 2.40% and a return on equity of 23.30%. The firm had revenue of $4.45 billion during the quarter, compared to analysts’ expectations of $4.42 billion. During the same period in the prior year, the company posted $0.79 earnings per share. The company’s revenue for the quarter was up 2.2% compared to the same quarter last year. Sell-side analysts predict that MGM Resorts International will post 1.96 earnings per share for the current fiscal year.

About MGM Resorts International

MGM Resorts International is a global hospitality and entertainment company that owns and operates destination resorts, casinos, hotels, restaurants, convention facilities and live-entertainment venues. Its properties offer casino gaming, hotel accommodations, dining, nightlife, retail, spa services, sporting events and other leisure activities.

The company operates a portfolio of resorts in Las Vegas and other U.S. markets, including properties associated with brands such as MGM Grand, Bellagio, ARIA, Mandalay Bay, Park MGM, New York-New York and MGM National Harbor.