Analysis Of The Weekly Performance Of MGM Resorts International (MGM)

MGM Resorts International (NYSE:MGM) finished Tuesday with a subtraction of -$0.32 to close at $44.64, a downside of -0.71 percent. An average of 6,588,320 shares of common stock have been traded in the last five days. There was a gain of $0.79 in the past week. The last 20 days have seen an average of 8,191,515 shares traded, while the 50-day average volume stands at 6,811,592.

MGM stock has increased by 2.76% in the last month. The company shares reached their 1-month lowest point of $39.24 on 09/15/21. With the stock rallying to its 52-week high on 09/27/21, shares of the company touched a low of $19.55 and a high of $46.06 in 52 weeks. In spite of this, the price is down -3.09% from the 52-week high.


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Insider Transactions

6 days have passed since MGM Resorts International (MGM) last reported insider trading activity. SANDERS COREY IAN, who is CHIEF OPERATING OFFICER, most recently acquired $40,000 shares at $44.15 per share on Oct 01. In this transaction, the insider spent $1,766,164. CEO AND PRESIDENT, HORNBUCKLE WILLIAM, disposed of 60,000 shares at a price of $43.78 on Oct 01. The insider now owns more than $2,626,740 worth of shares. Prior to that, CHIEF OPERATING OFFICER SANDERS COREY IAN went on to Sale 10,000 shares at $44.00 each on Sep 23. An amount of $440,000 was transacted.

Valuation Metrics

MGM Resorts International (MGM) has a trailing price-to-earnings (P/E) ratio of 21.70 for the broader industry and 19.94 for the sector. This means investors are optimistic about the stock’s future prospects. In the last five years, MGM Resorts International’s PE ratio has ranged between 92.58 and 1.803. The stock’s beta is 2.39. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 3.17, the price-to-book (PB) ratio at 3.53.

MGM Resorts International pays a $0.01 dividend per share annually. It offers a dividend yield of 0.02%. The company’s most recent quarterly dividend payment took place on Sep. 15, and it was $0.0025 a share, representing a up of 20.0 from $0.0020 last year. Its dividend has been increased for the last 1 consecutive years with the latest increase dividend $0.0005 reported on Wednesday August 4 2021. Dividends have grown by -64.20% each year over the last three years.

MGM Resorts International will next go ex-dividend on 9-Dec. The next dividend payment MGM Resorts International will make is expected to be $0.0025.

The quick ratio of MGM Resorts International for the three months ended June 29 was 3.20, and the current ratio was 3.20, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 2.05 and a total debt to equity ratio of 2.06 for the quarter ending June 29. On the profitability front, the trailing 12-month gross margin is 43.20% against a 5-year average of 39.9%. MGM Resorts International’s EBITDA margin for the year ending June 29 is -11.91%, while its operating margin for the same period stands at -12.90%. Its gross profit as reported stood at -$412.96 million compared to revenue of $5.16 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, MGM Resorts International’s return on assets was -3.40%, compared to 3.2% over the last five years. In the past year, the return on investment has been -2.40%, and the 5-year average is 7.5%. Meanwhile, the return on equity (ROE) for the past 12 months has been -19.50% and the 5-year average holds at 13.7%. For the broader industry, ROE averaged 9.95 over the past year.

Earnings Surprise

The analyst consensus anticipated MGM Resorts International’s latest quarter earnings to come in at -$0.3 per share, but it turned out to be -$0.13, a 56.70% surprise. For the quarter, EBITDA amounted to $557.59 million. Shareholders own equity worth $481.88 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at MGM Resorts International (MGM) price momentum. RSI 9-day as of the close on 05 October was 58.56%, suggesting the stock is Neutral, with historical volatility in this time frame at 27.26%.

As of today, MGM’s price is $44.42 +1.80% or $0.79 from its 5-day moving average. MGM is currently trading +5.18% higher than its 20-day SMA and +14.14% higher than its 100-day SMA. However, the stock’s current price level is +17.35% above the SMA50 and +40.95% above the SMA200.

The stochastic %K and %D were 78.91% and 77.28%, respectively, and the average true range (ATR) was 1.50. With the 14-day stochastic at 77.18% and the average true range at 1.51, the RSI (14) stands at 58.26%. The stock has reached 0.20 on the 9-day MACD Oscillator while the 14-day reading was at 1.02.

Analyst Ratings

Susquehanna downgraded MGM Resorts International (NYSE: MGM) to a a Negative rating in its most recent analyst report. Previously, the stock was rated as a a Neutral.The consensus rating for MGM Resorts International (MGM) among analysts is Overweight. According to current brokerage recommendations, 1 brokerage firm advise that investors sell MGM, while 7 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 4 others rate it as a “buy”.

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

Analysts predict a range of price targets between $36.00 and $58.90, with a median target of $46.50. Taking a look at these predictions, the average price target given by analysts for MGM Resorts International (MGM) stock is $48.19.

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