MGM Resorts International experienced a significant decline in short interest during February 2023, as the figure fell by 13.8%. As of February 13, short interest totaled 22,075,920 shares, down from 25,598,662 shares reported on January 29. This decline represents approximately 8.9% of the company’s shares being short sold. With an average daily volume of 6,276,858 shares, the current days-to-cover ratio stands at 3.5 days.
Analysts have taken note of the changing dynamics surrounding MGM’s stock. On February 12, Deutsche Bank Aktiengesellschaft raised its price target for MGM shares from $43.00 to $44.00, maintaining a “buy” rating. Earlier, on February 6, Citigroup increased its target from $35.00 to $41.00, while also issuing a “neutral” rating. Similarly, JPMorgan Chase & Co. adjusted their price objective from $39.00 to $41.00 with a “neutral” rating.
In contrast, Argus revised its target price downward from $45.00 to $40.00, although it still holds a “buy” rating for MGM. Additionally, The Goldman Sachs Group reiterated a “sell” rating with a price target of $33.00. Overall, one analyst has rated the stock as a strong buy, while eight analysts have given it a buy rating, seven have assigned a hold rating, and four have issued sell ratings. According to MarketBeat, MGM Resorts International holds an average rating of “hold” with a consensus target price of $41.94.
MGM Resorts Financial Performance
MGM Resorts International recently reported its quarterly earnings on February 4, revealing earnings per share of $1.60. This figure comfortably surpassed analysts’ consensus estimates of $0.64 by $0.96. The company’s return on equity was reported at 26.04%, and it achieved a net margin of 1.17%. Revenue for the quarter reached $4.61 billion, exceeding analyst expectations of $4.42 billion. In the same quarter a year prior, MGM reported earnings of $0.45 per share.
Looking ahead, sell-side analysts forecast that MGM Resorts International will post earnings per share of 2.21 for the current year.
Insider Transactions and Institutional Holdings
In related news, major shareholder Iac Inc. made headlines by acquiring 1,098,748 shares of MGM on December 5, 2022. The shares were purchased at an average price of $36.30, totaling approximately $39,884,552.40. Following this transaction, Iac Inc. now owns 65,822,350 shares, valued at around $2,389,351,305, marking a 1.70% increase in their ownership.
Currently, 3.06% of the stock is held by insiders, while institutional investors and hedge funds control approximately 68.11% of MGM Resorts International shares. Recent institutional moves include Corient Private Wealth LLC raising its stake by 235.1% in the fourth quarter, resulting in ownership of 932,610 shares valued at $34,031,000. Other firms, such as Beacon Pointe Advisors LLC and State of Tennessee Department of Treasury, also increased their positions, reflecting ongoing investor interest.
MGM Resorts International continues to solidify its position as a leading global hospitality and entertainment company. The firm develops, owns, and operates destination resorts, hotels, and casinos, combining gaming experiences with luxury accommodations, dining, and entertainment options. Founded with the opening of the original MGM Grand Hotel & Casino in Las Vegas in 1973, the company has evolved to include sports betting and digital gaming, further enhancing guest engagement.
As the company navigates market conditions, it remains critical for investors to monitor analyst ratings, short interest changes, and insider trading activities to make informed decisions regarding their positions in MGM Resorts International.
