TLDR
Contents
- Shares of MGM advanced 2.32% to reach $36.68 on Wednesday, continuing a two-day winning streak
- Fourth-quarter earnings per share hit $1.60, exceeding analyst projections of $0.64 by $0.96
- Quarterly revenue reached $4.61B, surpassing the $4.42B consensus forecast
- IAC Inc. acquired approximately 1.1 million shares at $36.30 per share, totaling ~$39.9M
- TD Asset Management expanded its holdings by 146.9%, purchasing an additional 55,300 shares in Q3
MGM Resorts International delivered a strong Wednesday session, advancing 2.32% to settle at $36.68. This performance extended the stock’s winning streak to two consecutive sessions.
MGM Resorts International, MGM
The upward movement occurred during a generally favorable session for equity markets. The S&P 500 gained 0.78% while the Dow Jones Industrial Average climbed 0.49%.
Despite recent gains, MGM remains 8.67% beneath its 52-week peak of $40.16, which was achieved on August 28th. The stock’s 12-month floor stands at $25.30.
Share volume registered at 4.4 million, falling approximately 343,636 shares short of its 50-day average volume of 4.8 million.
Compared to industry competitors, results varied. DraftKings topped the sector with a 4.01% advance. Caesars Entertainment climbed 2.16%, while Las Vegas Sands posted a 0.66% increase.
Earnings Beat
MGM’s latest quarterly financial report, issued on February 4th, delivered impressive results throughout.
The gaming and hospitality giant reported earnings per share of $1.60 for the quarter, substantially exceeding the analyst consensus estimate of $0.64 by $0.96. This represents a significant improvement from EPS of $0.45 during the comparable quarter one year prior.
Quarterly revenue totaled $4.61 billion, surpassing Wall Street’s expectation of $4.42 billion.
The company achieved a return on equity of 26.04%, accompanied by a net margin of 1.17%. Wall Street analysts currently project full-year earnings per share of $2.21.
Institutional and Insider Activity
On the institutional front, numerous large investment firms expanded their MGM holdings during recent quarters.
Helikon Investments dramatically increased its position by 379.9% in Q2, elevating its total holdings to 8.81 million shares valued at approximately $303 million.
Davis Selected Advisers expanded its stake by 14.4% to reach 23.82 million shares, representing a value of $819 million. Arrowstreet Capital grew its position by 119.6% to 4.21 million shares.
Norges Bank initiated a fresh position valued at approximately $60.6 million. Goldentree Asset Management increased its holdings by 20.7%, pushing its total to 5.4 million shares worth $185.8 million.
TD Asset Management expanded its stake by 146.9% during Q3, purchasing 55,300 additional shares to reach a total of 92,957 shares, valued at $3.22 million as of the most recent filing.
Institutional investors collectively control 68.11% of MGM’s outstanding shares.
Regarding insider transactions, major stockholder IAC Inc. acquired 1,098,748 shares on December 5th at an average purchase price of $36.30, representing a total investment of approximately $39.9 million. IAC currently maintains ownership of 65.8 million shares, valued at roughly $2.39 billion. Corporate insiders collectively own 3.06% of outstanding shares.
Wall Street analyst sentiment remains divided. The consensus recommendation stands at “Hold” with an average price objective of $41.94.
Susquehanna reduced its price target from $46 to $45 while maintaining a “positive” rating. JPMorgan elevated its target from $39 to $41 alongside a “neutral” rating. Barclays established a $37 price target. UBS maintains a “neutral” stance with a $37 target. Goldman Sachs continues with a “sell” rating and $33 price target.
Among 20 analysts providing coverage, one assigns MGM a Strong Buy rating, eight recommend Buy, seven suggest Hold, and four rate it Sell.
MGM presently trades at a price-to-earnings ratio of 48.89, sporting a market capitalization of $9.38 billion and a beta coefficient of 1.38. The stock’s 50-day simple moving average sits at $35.41 while its 200-day moving average rests at $34.96.
