As of Thursday close, MGM Resorts International’s (NYSE:MGM) stock was down -$1.18, moving down -2.70 percent to $42.55. The average number of shares traded per day over the past five days has been 4,409,140 shares. 1 time new highs have been achieved over the past 5 days, with a -$3.93 fall in that time frame. In the last twenty days, the average volume was 4,868,445, while in the previous 50 days, it was 4,465,134.
Since last month, MGM stock retreated -14.78%. Shares of the company fell to $42.51 on 08/17/23, the lowest level in the past month. A 52-week high of $51.35 was reached on 07/31/23 after having rallying from a 52-week low of $29.20. Since the beginning of this year, MGM’s stock price has risen by 26.90% or $9.02, and marked a new high 29 times. However, the stock has declined by -17.14% since its 52-week high.
MGM stock investors should be aware that MGM Resorts International (MGM) stock had its last reported insider trading activity 8 days ago on Aug 10. McManus John, the CHIEF LEGAL ADMIN OFC AND SECY of the company, disposed of 10,000 shares for $46.59 on Aug 10. It resulted in a $465,914 divestment by the insider. SANDERS COREY IAN sold 25,000 shares at an average price of $45.21 on Aug 07. The insider now owns 136,632 shares following the transaction. On Aug 07, CHIEF LEGAL ADMIN OFC AND SECY McManus John sold 10,000 shares at $45.22 apiece. The transaction was valued at $452,248.
Valuation Metrics
Right now, MGM Resorts International (MGM) has a P/E ratio of about 41.39. The stock’s beta is 2.11. Besides these, the trailing price-to-sales (P/S) ratio of 1.02, the price-to-book (PB) ratio of 3.48, and the price-to-cash flow ratio of 12.41 may also be considered.
The latest dividend of $0.0025 per share was paid out, remained unchanged from last year’s $0.0025.
Financial Health
In the three months ended June 29, MGM Resorts International’s quick ratio stood at 2.00, while its current ratio was 2.00, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 1.53, and the total debt-to-equity ratio was 1.55. On the profitability front, the trailing twelve-month gross margin is 48.40% percent. In the year ended June 29, EBITDA margin amounted to 16.79%, whereas operating margins totaled 0.40%. Based on annual data, MGM earned $6.47 billion in gross profit and brought in $13.13 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 5.40%. Return on equity (ROE) for the past 12 months was 7.70%.
In MGM Resorts International’s quarter-end financial report for June 29, it reported total debt of $6.67 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. MGM’s revenue rose 17.18% to $3.87 billion during the quarter, while net income inched up to $3.94 billion. While analysts expected MGM Resorts International to report $0.54 quarterly earnings, the actual figure was $0.59 per share, beating the consensus estimate by 9.30%. During the quarter, the company generated $581.63 million in EBITDA. The liabilities of MGM Resorts International were 38.07 billion at the end of its most recent quarter ended June 29, and its total debt was $32.04 billion. The value of shareholders’ equity is $350.89 million.
Technical Picture
This quick technical analysis looks at MGM Resorts International’s (MGM) price momentum. With a historical volatility rate of 25.25%, the RSI 9-day stood at 23.08% on 17 August.
With respect to its five-day moving average, the current MGM Resorts International price is down by -8.46% percent or -$3.93. At present, MGM shares trade -14.47% below its 20-day simple moving average and +3.50% percent above its 100-day simple moving average. However, the stock is currently trading approximately +3.00% above its SMA50 and +18.33% above its SMA200.
Stochastic coefficient K was 1.74% and Stochastic coefficient D was 6.58%, while ATR was 1.33. Given the Stochastic reading of 0.51% for the 14-day period, the RSI (14) reading has been calculated as 31.91%. As of today, the MACD Oscillator reading stands at -1.61, while the 14-day reading stands at -2.70.
Analyst Ratings
Morgan Stanley reiterated its an Equal-weight rating on MGM Resorts International (NYSE: MGM) in a note to investors. The analysts firm has however raised their price target to $48, representing a possible 9.47% increase in the stock price. MGM Resorts International (MGM) has been rated Overweight by analysts. According to 0 brokerage firms, MGM is a sell, and 5 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 2 analysts rate MGM Resorts International stock as buy, with 10 recommending it as overweight.
With a median target price of $59.50, the current consensus forecast for the stock is $46.00 – $69.00. Based on these forecasts, analysts predict MGM Resorts International (MGM) will achieve an average price target of $57.34.
