The stock of MGM Resorts International (NYSE:MGM) increased by $0.71 on Monday to $42.88, up 1.67 percent. The last five days have seen an average of 4,469,940 shares of common stock traded. 29 times new highs were reached in the current year, with a gain of $9.46. The average number of shares traded over the last 20 days was 5,222,125, while the average volume over the last 50 days totaled 4,520,112.
MGM stock dropped -15.77% since last month. On 08/25/23, the company’s shares reached a one-month low of $41.89. The stock touched a high of $51.35 on 07/31/23, after rallying from a low of $29.20 in 52 weeks. The price of MGM stock has risen by 27.87% or $9.46 this year, reaching a new high 29 times. Still, the stock price is down -16.50% from the 52-week high.
Insider Transactions
MGM stock investors should be aware that MGM Resorts International (MGM) stock had its last reported insider trading activity 18 days ago on Aug 10. On Aug 10, CHIEF LEGAL ADMIN OFC AND SECY McManus John sold 10,000 shares at $46.59 each. This transaction resulted in the insider making $465,914. On Aug 07, SANDERS COREY IAN sold 25,000 shares at a price of US$45.21. After the transaction, the insider now owns 136,632 shares. CHIEF LEGAL ADMIN OFC AND SECY McManus John had earlier sold 10,000 shares on Aug 07 for $45.22 a share. The transaction was completed for $452,248.
Valuation Metrics
MGM Resorts International (MGM) has a trailing price-to-earnings (P/E) ratio of 41.71. Beta for the stock is 2.12. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 1.02, the price-to-book (PB) ratio of 3.51, and the price-to-cash flow ratio of 12.40.
Company paid $0.0025 per share in dividends, remained unchanged from $0.0025 last year.
Financial Health
For the three months ended June 29, MGM Resorts International’s quick ratio was 2.00, while its current ratio was 2.00, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 1.53, and the total debt to equity ratio is 1.55. As far as profitability goes, gross margin for the trailing twelve months is 48.40% percent. MGM Resorts International’s EBITDA margin for the year ended June 29 was 16.79%, whereas its operating margin stood at 0.40% for the same period. Based on annual data, it had gross profit of $6.47 billion and revenue of $13.13 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. MGM’s return on assets (ROA) during the last 12 months has been 0.80%. There was a 5.40% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 7.70%.
Earnings Surprise
According to MGM Resorts International’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $3.94 billion, while revenues rose by 17.18% to $3.87 billion. It was predicted that MGM Resorts International’s quarterly earnings would be $0.59, but it ended up being $0.54, beating the consensus by 9.30%. EBITDA was $581.63 million for the quarter. At the end of MGM Resorts International’s most recent quarter ended June 29, its liabilities totaled 38.07 billion, while its total debt was $32.04 billion. Equity owned by shareholders amounts to $350.89 million.
Technical Picture
Here’s a quick look at MGM Resorts International’s (MGM) price momentum from a technical perspective. As of 25 August, the RSI 9-day stood at 38.75%, suggesting the stock is Neutral, with a 21.31% historical volatility rate.
The stochastic %K and %D were 11.26% and 11.95% respectively, while the average true range (ATR) was 1.12. Based on the 14-day stochastic reading of 20.56%, the RSI (14) reading is 39.48%. On the 9-day MACD Oscillator, the stock is at -0.19, and the 14-day reading is at -1.22.
Analyst Ratings
In a note to investors, Morgan Stanley maintained its an Equal-weight rating on MGM Resorts International (NYSE: MGM). However, the firm raised their price target to $48, indicating a possible increase of 8.77% in the stock price. Analysts have assigned MGM Resorts International (MGM) an Overweight rating. MGM is a stock that is recommended for selling by 0 brokerage firms, while 4 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 2 rates it overweight and 11 others recommend it as a buy.
What is MGM’s price target for the next 12 months?
The current consensus forecast for the stock is between $46.00 and $69.00, with a median target price of $59.50. In analyzing these forecasts, the average price target given by analysts for MGM Resorts International (MGM) is $57.68.
