MGM Resorts International (NYSE:MGM) Shares Down 2% Following Analyst Downgrade

MGM Resorts International (NYSE:MGM)’s stock price dropped 2% during trading on Friday after SunTrust Banks lowered their price target on the stock from $35.00 to $34.00. SunTrust Banks currently has a hold rating on the stock. MGM Resorts International traded as low as $31.60 and last traded at $31.15, approximately 616,850 shares traded hands during mid-day trading. A decline of 90% from the average daily volume of 6,042,897 shares. The stock had previously closed at $31.80.

Other equities research analysts also recently issued research reports about the company. Zacks Investment Research upgraded MGM Resorts International from a “hold” rating to a “buy” rating and set a $34.00 target price on the stock in a research report on Friday, February 7th. TheStreet cut MGM Resorts International from a “b-” rating to a “c” rating in a research note on Wednesday, October 30th. Barclays lifted their price objective on MGM Resorts International from $37.00 to $40.00 and gave the company an “overweight” rating in a research note on Thursday, January 23rd. Cfra cut MGM Resorts International to a “sell” rating in a research note on Friday, February 7th. Finally, UBS Group lifted their price objective on MGM Resorts International from $31.00 to $34.00 and gave the company a “neutral” rating in a research note on Thursday, November 14th. Two research analysts have rated the stock with a sell rating, seven have assigned a hold rating and six have given a buy rating to the company’s stock. The company has a consensus rating of “Hold” and an average price target of $32.92.

Several hedge funds and other institutional investors have recently modified their holdings of MGM. FMR LLC grew its stake in shares of MGM Resorts International by 652.4% in the fourth quarter. FMR LLC now owns 2,597,644 shares of the company’s stock valued at $86,423,000 after buying an additional 2,252,387 shares in the last quarter. Bank of Montreal Can grew its stake in shares of MGM Resorts International by 578.3% in the fourth quarter. Bank of Montreal Can now owns 2,071,679 shares of the company’s stock valued at $68,925,000 after buying an additional 1,766,279 shares in the last quarter. Renaissance Technologies LLC grew its stake in shares of MGM Resorts International by 23.2% in the fourth quarter. Renaissance Technologies LLC now owns 5,793,540 shares of the company’s stock valued at $192,751,000 after buying an additional 1,090,900 shares in the last quarter. Bank of New York Mellon Corp grew its stake in shares of MGM Resorts International by 10.0% in the fourth quarter. Bank of New York Mellon Corp now owns 7,870,497 shares of the company’s stock valued at $261,850,000 after buying an additional 718,276 shares in the last quarter. Finally, Mackay Shields LLC grew its stake in MGM Resorts International by 258.2% during the 4th quarter. Mackay Shields LLC now owns 967,724 shares of the company’s stock worth $32,196,000 after purchasing an additional 697,579 shares in the last quarter. 81.58% of the stock is owned by institutional investors and hedge funds.

The stock has a market capitalization of $16.36 billion, a price-to-earnings ratio of -3,152.00, a PEG ratio of 2.14 and a beta of 1.50. The company has a debt-to-equity ratio of 1.47, a quick ratio of 0.84 and a current ratio of 0.87. The company has a 50 day moving average of $32.62 and a 200 day moving average of $30.35.

MGM Resorts International (NYSE:MGM) last released its earnings results on Wednesday, February 12th. The company reported $0.08 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.24 by ($0.16). MGM Resorts International had a return on equity of 4.10% and a net margin of 0.11%. The company had revenue of $3.19 billion for the quarter, compared to analyst estimates of $3.21 billion. During the same period in the previous year, the firm earned ($0.06) earnings per share. The company’s revenue for the quarter was up 4.4% compared to the same quarter last year. As a group, research analysts expect that MGM Resorts International will post 0.88 EPS for the current fiscal year.

The business also recently announced a quarterly dividend, which will be paid on Monday, March 16th. Investors of record on Tuesday, March 10th will be paid a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a yield of 1.90%. This is a boost from MGM Resorts International’s previous quarterly dividend of $0.13. The ex-dividend date is Monday, March 9th. MGM Resorts International’s payout ratio is presently 52.53%.

About MGM Resorts International (NYSE:MGM)

MGM Resorts International, through its subsidiaries, owns and operates integrated casino, hotel, and entertainment resorts in the United States and Macau. The company operates through three segments: Las Vegas Strip Resorts, Regional Operations, and MGM China. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities.

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