MGM Resort International (MGM) reveals a slowdown in the stock market

MGM resorts International (MGM) announced their quarterly and annual earnings and revealed weaker than expected figures; MGM was down by 5.5%.

The stock traded at $18.19 and last traded at $18.96; and 18,118,631 shares changed hands. The stock previously closed at $20.07. The analysts’ consensus estimate for earning per share (EPS) was $1.45 but actual EPC was $1.38, $0.07 lower than expected. The consensus estimate for revenues, for the quarter, was stated at $2.2 billion but actual revenues were $2.19 billion; an 8.1% year-over-year loss.

Overall positive prediction

A few equity research companies have issued reports on MGM shares over the last few months: eighteen investment analysts have issued the stock with a “buy” rating, one has endorsed a “strong buy” rating and two other have issued a “hold” rating. MGM Resort International has a consensus rating of “Buy” and a consensus target price of $26.47.

  • 22 October 2015, Zacks Investment Research, known for providing consensus EPS estimates lowered ratings for MGM from “Buy” to “Hold”.
  • 13 January 2016, Vetr, who provides crowdsourced star ratings for stocks, raised ratings for MGM from “Buy” to “Strong-Buy”; and set a $23.06 price objective.
  • 19 January 2016, Telsey Advisory Group, ranked no.1 Specialty Stores analyst for the last 7 years consecutively endorsed a rating of “Outperform” for MGM.
  • 26 January 2016, Susquehanna International Group, a global investment, trading and technology firm set a “Positive” rating for MGM and reduced their price objective from $31.00 to $28.00.
  • Finally, on 10 February 2016, Morgan Stanley, an American financial services corporation reaffirmed the “overweight” rating for MGM shares.

Some share movement

In related news, on 4 December 2015, Gregory Spierkel, Director at MGM bought the only 5,000 shared he owns of the company, at an average cost of $22.48 per share, valued at $112,400.00.

On 8 December 2015, Phyllis James, executive vice president of MGM, sold 23,963 of her shares at the average price of $21.59, for a total of $517,361.17. She is now left with 10,695 shares, valued at $230,905.05.

Exchanges of shares were also seen within several hedge funds:

  • Jennison Associates bought 270,654 MGM shares in the third quarter, raising their position by 14.5% in the third quarter; they now own 2,135,411 shares worth $39,398,000
  • In the fourth quarter, Vanguard Group Incorporated bought 1,046,253 MGM shares and boosted their stake by 3.5%; now owning a total of 31,278,874 shares worth $710,656,000.
  • Frontier Capital Management Co. LLC, bought 584,300 MGM shares and also raised their position by 45.4%; totalling their ownership to 1,871,571 shares worth $42,522,000.
  • Hosking Partners LLP, bought 5,371 shares, raising their position by 0.4%; they now owns 1,350,808 worth $30,690,000.
  • NWI Management LP, purchased 100,000 shares to raise their position by 9.8% and now own a total of 1,125,000 shares worth $25,560,000.
  • The stock’s market capitalisation is $10.60 billion. The company’s 50-day moving average price (MAP) is $19.67 and its 200-day MAP is $21.08.

MGM Resorts International owns and operates casino resorts. It is a holding company that operates in two sections: wholly owned domestic resorts and MGM China. The domestic resorts include non-gaming operations such as hotel, food and beverage and entertainment.

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