Traders Buy Large Volume of Call Options on MGM Resorts International (NYSE:MGM)

MGM Resorts International (NYSE:MGM) saw some unusual options trading activity on Monday. Stock investors acquired 9,570 call options on the company. This is an increase of 31% compared to the typical volume of 7,330 call options.

Insider Buying and Selling at MGM Resorts International

In other MGM Resorts International news, major shareholder Iac Inc. purchased 450,000 shares of the business’s stock in a transaction on Tuesday, March 24th. The stock was bought at an average cost of $37.13 per share, with a total value of $16,708,500.00. Following the acquisition, the insider owned 66,822,350 shares of the company’s stock, valued at $2,481,113,855.50. The trade was a 0.68% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Daniel J. Taylor sold 6,675 shares of the company’s stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $38.44, for a total transaction of $256,587.00. The disclosure for this sale is available in the SEC filing. 3.38% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On MGM Resorts International

Several hedge funds have recently modified their holdings of MGM. Whittier Trust Co. boosted its stake in MGM Resorts International by 2.5% during the first quarter. Whittier Trust Co. now owns 10,778 shares of the company’s stock worth $405,000 after buying an additional 262 shares in the last quarter. Global Retirement Partners LLC boosted its stake in MGM Resorts International by 55.9% during the fourth quarter. Global Retirement Partners LLC now owns 784 shares of the company’s stock worth $29,000 after buying an additional 281 shares in the last quarter. Asset Management One Co. Ltd. boosted its stake in MGM Resorts International by 4.2% during the fourth quarter. Asset Management One Co. Ltd. now owns 7,700 shares of the company’s stock worth $286,000 after buying an additional 313 shares in the last quarter. Vanguard Personalized Indexing Management LLC boosted its stake in MGM Resorts International by 0.8% during the third quarter. Vanguard Personalized Indexing Management LLC now owns 39,763 shares of the company’s stock worth $1,378,000 after buying an additional 328 shares in the last quarter. Finally, Brown Brothers Harriman & Co. boosted its stake in MGM Resorts International by 23.1% during the fourth quarter. Brown Brothers Harriman & Co. now owns 1,893 shares of the company’s stock worth $69,000 after buying an additional 355 shares in the last quarter. 68.11% of the stock is owned by institutional investors.

Trending Headlines about MGM Resorts International

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

• Positive Sentiment: Barry Diller’s People Inc. reportedly submitted a non-binding proposal to buy the rest of MGM Resorts it does not already own for $48.30 per share in cash, valuing MGM at about $18 billion including debt. The offer represented a meaningful premium to recent trading levels and sparked a sharp move higher in the stock. PEOPLE INCORPORATED PROPOSES TO ACQUIRE MGM RESORTS INTERNATIONAL FOR $48.30 PER SHARE IN CASH
• Positive Sentiment: Multiple reports, including CNBC and The Wall Street Journal, reinforced the takeover story, increasing speculation that MGM could be a strategic acquisition target and adding to investor enthusiasm. Barry Diller’s People to put in $18 billion bid for casino giant MGM Resorts
• Positive Sentiment: Susquehanna raised its price target on MGM to $50 from $45 and kept a positive rating, signaling continued analyst support even before the takeover news fully sank in. Susquehanna adjusts price target on MGM Resorts International to $50 from $45
• Neutral Sentiment: Earlier commentary from Seeking Alpha pointed to improving Las Vegas trends, growth in MGM Digital and China, and better underlying operating momentum, which supports the longer-term bullish case but was not the main driver of today’s move. MGM: Better Vegas Trends Give The Stock Room To Run

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the stock. Jefferies Financial Group downgraded shares of MGM Resorts International from a “buy” rating to a “hold” rating and cut their price target for the company from $50.00 to $44.00 in a report on Friday, May 1st. Citigroup decreased their target price on shares of MGM Resorts International from $41.00 to $40.00 and set a “neutral” rating for the company in a report on Thursday, April 30th. Berenberg Bank reiterated a “buy” rating on shares of MGM Resorts International in a report on Wednesday, February 11th. UBS Group decreased their target price on shares of MGM Resorts International from $40.00 to $39.00 and set a “neutral” rating for the company in a report on Friday, April 10th. Finally, Weiss Ratings upgraded shares of MGM Resorts International from a “sell (d)” rating to a “sell (d+)” rating in a report on Friday, May 15th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, six have issued a Hold rating and four have given a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $48.47.

MGM Resorts International Stock Up 15.6%

NYSE:MGM traded up $6.83 during mid-day trading on Monday, reaching $50.50. The stock had a trading volume of 14,945,051 shares, compared to its average volume of 5,019,534. The business’s 50 day moving average is $38.01 and its 200 day moving average is $36.27. MGM Resorts International has a fifty-two week low of $29.18 and a fifty-two week high of $51.18. The stock has a market cap of $12.92 billion, a P/E ratio of 70.08 and a beta of 1.31. The company has a debt-to-equity ratio of 1.93, a current ratio of 1.33 and a quick ratio of 1.30.

MGM Resorts International (NYSE:MGM) last released its quarterly earnings data on Wednesday, April 29th. The company reported $0.49 EPS for the quarter, missing analysts’ consensus estimates of $0.56 by ($0.07). MGM Resorts International had a return on equity of 24.43% and a net margin of 1.03%.The firm had revenue of $4.45 billion during the quarter, compared to analyst estimates of $4.37 billion. During the same quarter in the prior year, the company posted $0.69 EPS. The company’s quarterly revenue was up 4.2% on a year-over-year basis. As a group, sell-side analysts predict that MGM Resorts International will post 1.99 earnings per share for the current year.

MGM Resorts International Company Profile

MGM Resorts International is a leading global hospitality and entertainment company that develops, owns and operates destination resorts, hotels and casinos. Its properties feature integrated gaming floors alongside luxury accommodations, fine dining and retail outlets, live entertainment venues and convention facilities. The company also offers loyalty programs, sports betting and digital gaming experiences to enhance guest engagement and drive repeat visitation.

The company traces its heritage to the opening of the original MGM Grand Hotel & Casino on the Las Vegas Strip in 1973.