Melco Resorts & Entertainment Limited (NASDAQ: MLCO) stock jumped 0.79% on Friday to $5.12 against a previous-day closing price of $5.08. With 1.8 million shares changed hands, the volume of the stock remained lighter than its average volume of 4.65 million shares. During the session, the Resorts & Casinos company that operates in wider Consumer Cyclical sector, reached to the highest price of $5.18 whereas the lowest price it dropped to was $5.06. The 52-week range on MLCO shows that it touched its highest point at $14.65 and its lowest point at $4.06 during that stretch. It currently has a 1-year price target of $9.71. Beta for the stock currently stands at 1.58.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of MLCO was down-trending over the past week, with a drop of -10.80%, but this was down by -13.07% over a month. Three-month performance dropped to -10.65% while six-month performance fell -52.81%. The stock lost -60.89% in the past year, while it has lost -49.71% so far this year. A look at the trailing 12-month EPS for MLCO yields -1.60 with Next year EPS estimates of -0.07. EPS is expected to grow by 8.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -47.20%.
Float and Shares Shorts:
At present, 474.06 million MLCO shares are outstanding with a float of 460.10 million shares on hand for trading. On Jul 14, 2022, short shares totaled 8.59 million, which was 1.82% higher than short shares on Jun 14, 2022. In addition to Mr. Yau Lung Ho as the firm’s Founder, Chairman & CEO, Mr. Evan Andrew Winkler serves as its Pres & Director.
Through their ownership of 41.39% of MLCO’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 27.75% of MLCO, in contrast to 11.14% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in MLCO with 4.51% of the stake, ARGA Investment Management LP holds 21,304,591 shares worth 21,304,591. A second-largest stockholder of MLCO, Hardman Johnston Global Advisors, holds 20,992,779 shares, controlling over 4.44% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in MLCO, holding 20,907,587 shares or 4.43% stake. With a 1.77% stake in MLCO, the American Funds Small Cap World Fu is the largest stakeholder. A total of 8,346,608 shares are owned by the mutual fund manager. The American Funds New Perspective Fu, which owns about 1.04% of MLCO stock, is the second-largest Mutual Fund holder. It holds 4,906,459 shares valued at 28.21 million. CREF Stock Account holds 0.81% of the stake in MLCO, owning 3,823,993 shares worth 21.99 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2022, MLCO reported revenue of $474.94M and operating income of -$135.90M. Over the past year, revenue came in at $1.97B while operating income stood at -$550.55M. It generated -$183.28M net income for the quarter, which came to -$762.13M over the last twelve months. The EBITDA in the recently reported quarter was $5.73M and diluted EPS was -$0.39. EBITDA for the full year was $28.28M.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MLCO since 13 analysts follow the stock currently. There are 8 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With MLCO analysts setting a high price target of $13.30 and a low target of $4.60, the average target price over the next 12 months is $8.94. Based on these targets, MLCO could surge 159.77% to reach the target high and fall by -10.16% to reach the target low. Reaching the average price target will result in a growth of 74.61% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. MLCO will report FY 2022 earnings on 02/23/2023. Analysts have provided yearly estimates in a range of -$0.98 being high and -$2.54 being low. For MLCO, this leads to a yearly average estimate of -$1.68. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Melco Resorts & Entertainment Limited surprised analysts by $0.06 when it reported -$0.37 EPS against a consensus estimate of -$0.42. The surprise factor in the prior quarter was $0.23. Based on analyst estimates, the high estimate for the next quarter is -$0.37 and the low estimate is -$0.67. The average estimate for the next quarter is thus -$0.49.
Dividends & Yield:
In terms of dividends, MLCO has a dividend of $0.46 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and MLCO currently yields $0.83. In the past year, MLCO’s dividend yield has been $0.83, but when looking at the stock over the past five years, its yield has been $2.23. Accordingly, MLCO has a current buyback yield of $2.52. This was $2.52 for the TTM, and it was $6.76 for the past five years.