Quick Overview
- Shares of MGM advanced 2.32% to reach $36.68 on Wednesday, continuing a two-day upward trend
- Fourth-quarter earnings per share of $1.60 significantly exceeded analyst projections of $0.64, representing a $0.96 beat
- 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 roughly $39.9M
- TD Asset Management expanded its holdings by 146.9%, purchasing an additional 55,300 shares in the third quarter
Shares of MGM Resorts International posted strong performance on Wednesday, advancing 2.32% to settle at $36.68. This gain extended the stock’s winning streak to two consecutive sessions.
MGM Resorts International, MGM
The upward movement occurred during a generally favorable trading session for equity markets. The S&P 500 index gained 0.78% while the Dow Jones Industrial Average increased 0.49%.
Despite recent gains, MGM shares remain 8.67% lower than the 52-week peak of $40.16 achieved on August 28th. The stock’s annual low stands at $25.30.
Wednesday’s trading volume registered at 4.4 million shares, approximately 343,636 beneath the 50-day average volume of 4.8 million.
Compared to industry competitors, performance varied. DraftKings topped the sector with a 4.01% increase. Caesars Entertainment climbed 2.16%, and Las Vegas Sands posted a 0.66% gain.
Quarterly Results Exceed Projections
MGM’s latest quarterly financial results, disclosed on February 4th, demonstrated impressive performance metrics.
The gaming and hospitality giant reported earnings per share of $1.60 for the period, substantially surpassing the Street consensus of $0.64 by $0.96. This represents significant improvement from the $0.45 EPS recorded in the corresponding quarter of the previous year.
Quarterly revenue totaled $4.61 billion, exceeding analyst expectations of $4.42 billion.
The company achieved a return on equity of 26.04%, alongside a net margin of 1.17%. Current Wall Street forecasts project full-year earnings per share of $2.21.
Major Investment Fund Movements and Insider Transactions
Multiple prominent institutional investors have substantially increased their MGM positions in recent reporting periods.
Helikon Investments dramatically expanded its holdings by 379.9% during the second quarter, accumulating 8.81 million shares valued at approximately $303 million.
Davis Selected Advisers increased its stake by 14.4%, bringing its total position to 23.82 million shares worth $819 million. Arrowstreet Capital expanded its investment by 119.6%, reaching 4.21 million shares.
Norges Bank established a fresh position valued at approximately $60.6 million. Goldentree Asset Management increased its stake by 20.7%, now holding 5.4 million shares worth $185.8 million.
TD Asset Management significantly increased its investment by 146.9% during the third quarter, purchasing 55,300 additional shares to bring its total holdings to 92,957 shares, valued at $3.22 million based on the most recent filing.
Collectively, institutional investors control 68.11% of MGM’s outstanding shares.
Regarding insider transactions, major shareholder IAC Inc. purchased 1,098,748 shares on December 5th at an average price of $36.30 per share, representing a total investment of approximately $39.9 million. Following this transaction, IAC holds 65.8 million shares valued at roughly $2.39 billion. Corporate insiders maintain ownership of 3.06% of outstanding stock.
Wall Street analyst perspectives remain divided. The consensus recommendation stands at “Hold” with an average price target of $41.94.
Susquehanna reduced its price target from $46 to $45 while maintaining a “positive” outlook. 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 objective. Goldman Sachs continues a “sell” rating with a $33 target.
Among 20 analysts providing coverage, one assigns a Strong Buy rating, eight recommend Buy, seven suggest Hold, and four advise Sell.
MGM currently maintains a price-to-earnings ratio of 48.89, with a market capitalization of $9.38 billion and a beta coefficient of 1.38. The stock’s 50-day moving average stands at $35.41, while its 200-day moving average is $34.96.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
