On May 17, 2023, market analysts have taken notice of the recent adjustments made by Raymond James Financial Services Advisors Inc. with regards to its holdings in MGM Resorts International (NYSE:MGM). According to a report submitted to the Securities and Exchange Commission (SEC), the financial firm has decreased its percentage ownership of MGM Resorts International shares by 13.7%. This decrease amounts to a total of 40,187 shares sold by Raymond James Financial Services Advisors Inc., which currently owns 252,877 shares in MGM Resorts International worth $8,479,000.
This recent development involving one of Nevada’s biggest hospitality corporations came shortly after the release of MGM Resorts International’s first-quarter earnings report on May 1st. The financial results showed that the company has exceeded Wall Street’s earnings estimate for the quarter with an EPS of $0.44 compared to a consensus estimate of $0.04.
MGM Resorts International has reportedly garnered revenue amounting to $3.90 billion for the quarter as opposed to its estimated revenue amounting to $3.61 billion – an increase in quarterly revenue by almost 37%. The company was also able to maintain positive net margin at around 14% despite having a negative return on equity.
Several corporate insiders have been observed selling some of their MGM Resorts International stocks over recent months – these events amounted to more than $3 million worth of company stock being sold within this past quarter alone; equating roughly to about 2.39% ownership of the business.
Despite these minor developments in terms of shareholding percentages, it was recently announced that MGM Resorts International’s Board of Directors had approved a share repurchase program last February totaling up to $2 billion; signaling that there is still enough confidence from their leadership that their corporation is undervalued in the market. Market analysts believe that this move will not only raise investor morale, but also create an opportunity for shareholder value to increase in the near future.
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Investor Landscape Changes for MGM Resorts International
MGM Resorts International, a renowned hotel and entertainment company, has been experiencing notable changes in its investor landscape in recent times, with several large investors announcing new positions or raising their stakes in the company. In the 3rd quarter of last year, Personal Capital Advisors Corp made an entry into the industry with a new position worth $31,218,000. Similarly, Styrax Capital LP followed suit acquiring a stake worth $25,029,000 in MGM Resorts International later that year. Los Angeles Capital Management LLC took a more aggressive approach during the same period by increasing its stake in the company by over 1,000%, now owning 753,396 shares valued at $22,391,000 after buying an additional 689,228 shares last quarter. And to top it off Contrarius Investment Management Ltd bought into MGM Resorts with $21,610,000 and finally Marshall Wace LLP raising its position by 213.9% and now holding 906K shares valued at $26.9M.
Overall institutional investors such as hedge funds own most of the gaming giant’s stock with a total share allotment of about 82.77% Market analysts have spoken positively about this development for MGM Resorts International; research firms like Barclays Bank Plc have lifted their price targets on the stock from approximately $59 to $60 whilst others such as StockNews.com have raised the stock from hold rating to buy rating respectively.
Despite these great developments over time spanning up until today (May 17th), NYSE trading opened at $41.15 this Wednesday for MGM Resorts International. The firm’s market capitalization remains at an impressive value of around $14.97 billion dollars while maintaining a PE ratio of around 8:79 and beta rate of roughly +/-2:06 points respectively on both sides.
It is fascinating to see how fast and strong casino properties recover after such significant economic challenges since COVID-19 appeared. MGM continues to be one of the major players in Las Vegas, dominating over 35% of the Strip’s casino market.
As we progress into the future, more investors may join this heralded few and take up positions in the company as it strives towards greater success with recognition from other major institutions such as Bloomberg, who have given the stock an average rating of “Moderate Buy” and a price target of about $56.13. Therefore, now is perhaps a ripe time to get on board with MGM Resorts International.
