MGM Resorts International (NYSE: MGM) stock fell -0.85% on Wednesday to $39.83 against a previous-day closing price of $40.17. With 5.09 million shares changed hands, the volume of the stock remained heavier than its average volume of 4.42 million shares. During the session, the Resorts & Casinos company that operates in wider Consumer Cyclical sector, reached to the highest price of $40.36 whereas the lowest price it dropped to was $39.27. The 52-week range on MGM shows that it touched its highest point at $46.37 and its lowest point at $26.41 during that stretch. It currently has a 1-year price target of $57.31. With its current market cap of 14.65 billion, MGM has annualized dividend of $0.01 while the current yield stands at 0.03%. Beta for the stock currently stands at 2.07.
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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 MGM was down-trending over the past week, with a drop of -5.59%, but this was down by -8.31% over a month. Three-month performance dropped to -7.69% while six-month performance rose 11.38%. The stock gained 18.51% in the past year, while it has gained 18.79% so far this year. A look at the trailing 12-month EPS for MGM yields 4.68 with Next year EPS estimates of 2.60. For the next quarter, that number is 0.47. This implies an EPS growth rate of 44.60% for this year and 19.10% for next year.
Float and Shares Shorts:
At present, 374.08 million MGM shares are outstanding with a float of 306.13 million shares on hand for trading. On May 14, 2023, short shares totaled 7.42 million, which was 2.04% higher than short shares on Apr 13, 2023. In addition to Mr. William Joseph Hornbuckle IV as the firm’s Pres, CEO & Director, Mr. Jonathan S. Halkyard serves as its CFO & Treasurer.
Through their ownership of 67.92% of MGM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 63.69% of MGM, in contrast to 36.49% held by mutual funds. Shares owned by individuals account for 29.40%. As the largest shareholder in MGM with 8.76% of the stake, The Vanguard Group, Inc. holds 32,739,669 shares worth 32,739,669. A second-largest stockholder of MGM, T. Rowe Price Investment Manageme, holds 20,860,456 shares, controlling over 5.58% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in MGM, holding 14,810,301 shares or 3.96% stake. With a 2.76% stake in MGM, the T Rowe Price Mid Cap Growth Fund is the largest stakeholder. A total of 10,325,000 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.52% of MGM stock, is the second-largest Mutual Fund holder. It holds 9,407,576 shares valued at 422.59 million. Canada Pension Plan holds 2.32% of the stake in MGM, owning 8,689,000 shares worth 390.31 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, 2023, MGM reported revenue of $3.26B and operating income of $139.89M. The EBITDA in the recently reported quarter was $401.14M and diluted EPS was $4.20.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MGM since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With MGM analysts setting a high price target of $75.00 and a low target of $46.90, the average target price over the next 12 months is $57.46. Based on these targets, MGM could surge 88.3% to reach the target high and rise by 17.75% to reach the target low. Reaching the average price target will result in a growth of 44.26% 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.
Summary of Insider Activity:
Insiders traded MGM stock several times over the past three months with 11 Buys and 8 Sells. In these transactions, 50,835 shares were bought while 66,671 shares were sold. The number of buy transactions has increased to 47 while that of sell transactions has risen to 47 over the past year. The total number of shares bought during that period was 1,607,272 while 605,356 shares were sold.