Truist Financial has reduced its price target for MGM Resorts International (NYSE:MGM) from $47.00 to $45.00. This adjustment was revealed in a research report issued on October 27, 2023, while maintaining a “buy” rating on the stock. The updated target price indicates a potential upside of approximately 23.38% from MGM’s previous closing price.
Recent assessments from various analysts further illustrate the mixed outlook for MGM. On September 22, 2023, Deutsche Bank Aktiengesellschaft lowered its target price on MGM from $54.00 to $53.00. Barclays followed suit on December 17, 2023, setting a target of $38.00 and rating the stock as “equal weight.” Meanwhile, Morgan Stanley raised its price target from $41.00 to $43.00 with an “equal weight” rating on September 11, 2023. Argus also adjusted its target, decreasing it from $45.00 to $40.00, but kept a “buy” rating. Finally, Capital One Financial cut its target price from $47.00 to $46.00, assigning an “overweight” rating.
Analysts have generally rated MGM with a mixture of sentiments; twelve analysts have assigned a “buy” rating, ten have issued a “hold” rating, and three have advised a “sell.” According to data from MarketBeat.com, the average rating for MGM is “hold,” with a consensus price target of $45.19.
MGM Resorts Reports Earnings Miss
MGM Resorts recently reported its earnings results for the quarter ending on October 29, 2023. The company announced earnings per share (EPS) of $0.24, falling short of analysts’ expectations of $0.37 by $0.13. The firm recorded a net margin of 0.40% and a return on equity of 17.23%. Revenue for the quarter stood at $4.25 billion, slightly exceeding estimates of $4.24 billion. This represented a 1.6% increase in revenue compared to the same quarter the previous year.
Analysts predict that MGM Resorts will post an EPS of $2.21 for the current fiscal year, indicating a modest outlook for future performance.
Insider Transactions and Institutional Investment Trends
In a recent development concerning insider trading, major shareholder Iac Inc. acquired 1,098,748 shares of MGM on December 5, 2023, at an average price of $36.30 per share. This purchase totaled approximately $39.9 million and increased Iac Inc.’s holdings to 65,822,350 shares, valued at around $2.39 billion, representing a 1.70% increase in their position. The transaction was disclosed in a filing with the Securities and Exchange Commission.
Institutional investors have also been adjusting their stakes in MGM Resorts. Helikon Investments Ltd. expanded its investment by 379.9% in the second quarter, now holding 8,810,322 shares valued at $302.99 million. Similarly, AQR Capital Management LLC increased its holdings by 202.5% during the third quarter, acquiring 8,446,982 shares valued at $292.77 million. Other noteworthy changes include Kingstone Capital Partners Texas LLC entering a new stake valued at approximately $171.63 million and Arrowstreet Capital Limited Partnership increasing its investment by 81.4%.
Currently, institutional investors own 68.11% of MGM Resorts’ stock, reflecting strong confidence in the company’s long-term prospects.
MGM Resorts International continues to be a significant player in the global hospitality and entertainment industry, operating a range of resorts, hotels, and casinos. The company blends integrated gaming floors with luxury accommodations, fine dining, and diverse entertainment options, enhancing guest experiences and encouraging repeat visitation. Established in 1973 with the opening of the original MGM Grand Hotel & Casino on the Las Vegas Strip, the company has built a substantial reputation in the sector.
