Is Buying Stock In MGM Resorts International (MGM) A Good Move Today?

MGM Resorts International (NYSE:MGM) saw an upside of 3.96% to close Friday at $44.86 after adding $1.71 on the day. The 5-day average trading volume is 7,238,200 shares of the company’s common stock. It has gained $46.06 in the past week and touched a new high 1 time within the past 5 days. An average of 8,026,990 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 6,766,782.

MGM’s 1-month performance is 6.30% or $2.66 on its low of $39.24 reached on 09/15/21. The company’s shares have touched a 52-week low of $19.55 and high of $46.06, with the stock’s rally to the 52-week high happening on 09/27/21. YTD, MGM has achieved 42.37% or $13.35 and has reached a new high 19 times. However, the current price is down -2.62%% from the 52-week high price.


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Insider Transactions

On Sep 23, 11 days have gone by since the last insider trading activity for MGM Resorts International (MGM). SANDERS COREY IAN (CHIEF OPERATING OFFICER) most recently sold 10,000 shares at $44.00 per share on Sep 23. This transaction cost the insider $440,000. CEO AND PRESIDENT, HORNBUCKLE WILLIAM, sold 10,000 shares at a price of $44.00 on Sep 23. Then, on Aug 27, EVP GENERAL COUNSEL AND SECY McManus John sold 10,000 shares at a price of $43.35 per share. This transaction amounted to $433,467.

Valuation Metrics

MGM Resorts International (MGM) has a trailing price-to-earnings (P/E) ratio of 25.13 for the broader industry and 29.82 for the sector, meaning that investors are optimistic about the stock’s future prospects. The company’s PE ratio for the last five years has touched a high of 92.58 and a low of 1.803. MGM stock has a beta of 2.39. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 3.18 while the price-to-book (PB) in the most recent quarter is 3.55.

MGM Resorts International pays an annual dividend of $0.01 per share. Its dividend yield is 0.02%. MGM’s most recent quarterly dividend payment was made on Sep. 15, when it paid $0.0025 a share compared with prior rate of $0.0020, up 20.0% from last year’s. The company has boosted its dividend for the last 1 consecutive years with the latest dividend increase of $0.0005 reported on Wednesday August 4 2021. Measured over the last 3 years, the Dividend has been growing by -64.20% yearly.

It is projected that MGM Resorts International’s next ex-dividend date will be on 9-Dec. MGM is expected to distribute $0.0025 as its next dividend.

MGM Resorts International’s quick ratio for the period ended June 29 was 3.20, with the current ratio over the same period at 3.20 meaning that MGM stock is able to fulfill its debt obligations. As well, the company’s long term debt to equity for the quarter ending June 29 was 2.05, while the total debt to equity was 2.06. In terms of profitability, the gross margin trailing 12 months is 43.20%The trailing 12-month EBITDA margin is -11.91% while for the period ending June 29; MGM Resorts International’s operating margin was -12.90%. The firm’s gross profit as reported stood at -$412.96 million against revenue of $5.16 billion.

Earnings Surprise

For the quarterly period ending June 29 this year, Net income and sales went up compared to those figures reported in the previous quarter. Analysts expected MGM to announce -$0.3 per share in earnings in its latest quarter, but it posted -$0.13, representing a 56.70% surprise. EBITDA for the quarter stood at more than $557.59 million. MGM stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 25.67 billion, with total debt at $21.26 billion. Shareholders hold equity totaling $481.88 million

Technical Picture

Let’s look briefly at MGM Resorts International (MGM) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 01 October was 61.86% to suggest the stock is trending Neutral, with historical volatility in this time period at 43.20%.

The stock’s 5-day moving average is $44.37, reflecting a +0.54% or $0.24 change from its current price. MGM is currently trading +5.40% above its 20-day SMA, +15.74% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 and SMA200 by +14.35% and +45.84% respectively.

Stochastic %K and %D was 69.08% and 72.30% and the average true range (ATR) pointed at 1.61. The RSI (14) points at 60.25%, while the 14-day stochastic is at 82.36% with the period’s ATR at 1.58. The stock’s 9-day MACD Oscillator is pointing at 0.10 and 1.05 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for MGM Resorts International (NYSE: MGM), Susquehanna downgraded it to a Negative rating. They previously had a Neutral rating on the stock. Analysts offering their rating for MGM stock have a consensus rating for the stock as Overweight. Currently, 1 brokerage advisors rate MGM as a “sell,”, while 7 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 2 rates the stock as overweight while 4 have offered a “buy” rating.

What is MGM’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $36.00 and a high of $58.90, with their median price target at $46.50. Looking at these predictions, the average price target given by analysts is for MGM Resorts International (MGM) stock is $48.19.

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