MGM Resorts International (NYSE: MGM) has seen its price target adjusted by Truist Financial, which decreased the estimate from $47.00 to $45.00 in a report issued on October 27, 2023. Despite this reduction, Truist maintains a “buy” rating on the stock, indicating a potential upside of 23.38% based on the stock’s closing price prior to the adjustment.
Analysts from other major financial institutions have also weighed in on MGM’s stock performance. On September 22, 2023, Deutsche Bank Aktiengesellschaft reduced its target price from $54.00 to $53.00. Similarly, Barclays set a target of $38.00 and assigned an “equal weight” rating on December 17, 2023. In contrast, Morgan Stanley raised its price target from $41.00 to $43.00 with an “equal weight” rating on September 11, 2023. Argus lowered their target from $45.00 to $40.00 while maintaining a “buy” rating, and Capital One Financial decreased their target from $47.00 to $46.00, also rating the stock as “overweight.”
Analysts have mixed views on MGM, with twelve investment analysts issuing “buy” ratings, ten giving “hold” ratings, and three suggesting “sell.” According to data from MarketBeat.com, the average rating stands at “hold” with a consensus price target of $45.19.
Recent Financial Performance
MGM Resorts International recently reported its earnings on October 29, 2023, revealing earnings per share (EPS) of $0.24 for the quarter. This figure fell short of analysts’ expectations, which projected an EPS of $0.37, marking a difference of $(0.13). The company achieved a revenue of $4.25 billion, slightly above the anticipated $4.24 billion. Compared to the same quarter last year, revenue saw a year-over-year increase of 1.6%. The company also reported a net margin of 0.40% and a return on equity of 17.23%.
Insider Activities and Institutional Investors
In additional news, major shareholder Iac Inc. acquired 1,098,748 shares of MGM’s stock on December 5, 2023, at an average price of $36.30 per share, totaling approximately $39.88 million. Following this transaction, Iac Inc. now holds 65,822,350 shares valued at around $2.39 billion, which reflects a 1.70% increase in their ownership stake. This transaction was disclosed in a filing with the Securities and Exchange Commission (SEC).
Institutional investors have also made notable changes to their holdings in MGM Resorts. Helikon Investments Ltd increased its position by 379.9% in the second quarter, now owning 8,810,322 shares valued at approximately $302.99 million. AQR Capital Management LLC raised its stake by 202.5% during the third quarter, now holding 8,446,982 shares worth about $292.77 million. Kingstone Capital Partners Texas LLC entered a new investment valued at around $171.63 million in the second quarter, while Arrowstreet Capital Limited Partnership increased their stake by 81.4% during the third quarter. Davis Selected Advisers also expanded their holdings by 14.4% in the second quarter.
As a whole, hedge funds and institutional investors now control 68.11% of MGM Resorts’ stock, highlighting significant confidence in the company’s future.
MGM Resorts International remains a prominent player in the global hospitality and entertainment sectors, operating luxury hotels, casinos, and various entertainment venues. The company has a storied history, tracing its roots back to the original MGM Grand Hotel & Casino opened on the Las Vegas Strip in 1973.
