MGM Resorts International (NYSE:MGM) has seen its price target adjusted by analysts at Truist Financial, who reduced it from $47.00 to $45.00. This change was communicated in a research report released on Friday. Despite the adjustment, Truist maintains a “buy” rating on the stock, indicating a potential upside of approximately 23.38% from its previous closing price.
Several other financial institutions have also recently updated their assessments of MGM Resorts. Notably, Deutsche Bank Aktiengesellschaft lowered its target for the company from $54.00 to $53.00 in a report dated September 22, 2023. Barclays set a more conservative price target of $38.00 on December 17, 2023, designating an “equal weight” rating. On the other hand, Morgan Stanley increased its price target from $41.00 to $43.00 with a similar “equal weight” rating on September 11, 2023. Argus revised its target down from $45.00 to $40.00 while maintaining a “buy” rating, and Capital One Financial reduced its target from $47.00 to $46.00 with an “overweight” rating.
According to data from MarketBeat.com, the consensus among analysts shows that twelve investment analysts have rated MGM with a “buy” rating, while ten issued a “hold” rating and three analysts recommended a “sell.” The average rating for the stock currently stands at “hold,” with a consensus price target of $45.19.
Recent Earnings Report and Insider Activity
MGM Resorts International recently reported its earnings results on October 29, 2023. The company posted earnings per share (EPS) of $0.24, falling short of analysts’ expectations of $0.37 by $0.13. The firm reported a net margin of 0.40% and a return on equity of 17.23%. Revenue for the quarter reached $4.25 billion, slightly above the expected $4.24 billion. Year-over-year, revenue showed a modest increase of 1.6%.
In a noteworthy development, major shareholder Iac Inc. acquired 1,098,748 shares of MGM stock on December 5, 2023, at an average price of $36.30 per share, amounting to a total investment of approximately $39.88 million. Following this transaction, Iac Inc. holds a total of 65,822,350 shares, valued at around $2.39 billion, reflecting a 1.70% increase in their stake. This transaction was disclosed in a filing with the Securities and Exchange Commission (SEC).
Institutional Investor Movements
Recent changes among institutional investors have also been significant. Helikon Investments Ltd increased its stake in MGM Resorts by an impressive 379.9% during the second quarter, now holding 8,810,322 shares valued at approximately $303 million after acquiring an additional 6,974,347 shares. AQR Capital Management LLC raised its holdings by 202.5% in the third quarter, now owning 8,446,982 shares, valued at around $293 million. Another notable change was Kingstone Capital Partners Texas LLC, which purchased a new stake valued at about $171.6 million during the second quarter.
Arrowstreet Capital Limited Partnership also increased its stake by 81.4% in the third quarter, now owning 7,642,060 shares valued at approximately $265 million. Davis Selected Advisers added 3,006,052 shares to their holdings, increasing their total to 23,821,109 shares, worth around $819 million.
Overall, hedge funds and institutional investors now hold 68.11% of MGM Resorts International’s outstanding shares, reflecting significant confidence in the company’s future prospects.
MGM Resorts International remains a prominent player in the global hospitality and entertainment sector, operating destination resorts, hotels, and casinos. The company, which traces its roots back to the original MGM Grand Hotel & Casino on the Las Vegas Strip in 1973, continues to enhance guest experiences through various offerings, including loyalty programs, sports betting, and digital gaming.
