MGM Resorts International (NYSE:MGM) Trading Down 3.7% on Insider Selling

MGM Resorts International (NYSE:MGM – Get Rating)’s stock price fell 3.7% on Tuesday following insider selling activity. The company traded as low as $40.67 and last traded at $40.78. 2,405,827 shares changed hands during trading, a decline of 43% from the average session volume of 4,255,661 shares. The stock had previously closed at $42.33.

Specifically, Director Rose Mckinney-James sold 2,870 shares of the firm’s stock in a transaction dated Wednesday, March 1st. The shares were sold at an average price of $43.23, for a total transaction of $124,070.10. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. In other news, Director Rose Mckinney-James sold 2,870 shares of MGM Resorts International stock in a transaction on Wednesday, March 1st. The stock was sold at an average price of $43.23, for a total transaction of $124,070.10. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, COO Corey Ian Sanders sold 50,000 shares of MGM Resorts International stock in a transaction that occurred on Monday, April 3rd. The stock was sold at an average price of $44.42, for a total transaction of $2,221,000.00. Following the completion of the sale, the chief operating officer now directly owns 161,632 shares in the company, valued at approximately $7,179,693.44. The disclosure for this sale can be found here. In the last 90 days, insiders sold 55,220 shares of company stock valued at $2,445,251. 2.39% of the stock is owned by company insiders.

Analyst Ratings Changes

Several research firms have issued reports on MGM. Morgan Stanley increased their target price on MGM Resorts International from $40.00 to $43.00 and gave the stock an “equal weight” rating in a research report on Wednesday, February 1st. Truist Financial increased their price objective on MGM Resorts International from $57.00 to $58.00 in a report on Tuesday, May 2nd. JMP Securities reaffirmed a “market outperform” rating and set a $60.00 target price on shares of MGM Resorts International in a report on Monday, April 17th. StockNews.com started coverage on shares of MGM Resorts International in a report on Thursday, May 18th. They issued a “buy” rating on the stock. Finally, JPMorgan Chase & Co. boosted their price objective on shares of MGM Resorts International from $55.00 to $60.00 in a research note on Tuesday, May 2nd. Two analysts have rated the stock with a hold rating and nine have given a buy rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $56.13.

MGM Resorts International Stock Performance

The company’s 50-day moving average price is $43.05 and its 200 day moving average price is $40.31. The stock has a market capitalization of $14.61 billion, a PE ratio of 8.58 and a beta of 2.06. The company has a debt-to-equity ratio of 1.31, a quick ratio of 2.15 and a current ratio of 2.19.

MGM Resorts International (NYSE:MGM – Get Rating) last released its quarterly earnings results on Monday, May 1st. The company reported $0.44 earnings per share for the quarter, beating the consensus estimate of $0.04 by $0.40. MGM Resorts International had a negative return on equity of 1.33% and a net margin of 13.84%. The company had revenue of $3.90 billion for the quarter, compared to analyst estimates of $3.61 billion. During the same period in the previous year, the company posted $0.01 earnings per share. The firm’s revenue was up 36.6% on a year-over-year basis. On average, equities research analysts expect that MGM Resorts International will post 1.89 earnings per share for the current fiscal year.

MGM Resorts International announced that its board has approved a share repurchase program on Wednesday, February 8th that authorizes the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 12.6% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s management believes its stock is undervalued.

Institutional Investors Weigh In On MGM Resorts International

Institutional investors have recently modified their holdings of the stock. ICA Group Wealth Management LLC bought a new stake in MGM Resorts International during the 4th quarter valued at about $28,000. James Investment Research Inc. purchased a new position in MGM Resorts International in the 1st quarter worth approximately $29,000. VitalStone Financial LLC lifted its position in MGM Resorts International by 108.9% in the 1st quarter. VitalStone Financial LLC now owns 729 shares of the company’s stock valued at $33,000 after acquiring an additional 380 shares in the last quarter. McElhenny Sheffield Capital Management LLC bought a new stake in shares of MGM Resorts International in the 4th quarter worth $34,000. Finally, Tobam purchased a new position in shares of MGM Resorts International in the fourth quarter worth $34,000. 82.77% of the stock is owned by hedge funds and other institutional investors.

About MGM Resorts International

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MGM Resorts International is a holding company, which engages in the ownership and operations of casino resorts. The firm’s casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. It operates through the following business segments: Las Vegas Strip Resorts, Regional Operations and MGM China.