MGM Resorts International (NYSE:MGM) Sees Significant Decline in Short Interest

MGM Resorts International (NYSE:MGM) was the target of a significant decline in short interest in April. As of April 15th, there was short interest totalling 14,358,783 shares, a decline of 19.5% from the March 29th total of 17,838,593 shares. Approximately 2.8% of the company’s stock are short sold. Based on an average trading volume of 5,480,212 shares, the short-interest ratio is currently 2.6 days.

Shares of MGM traded down $0.64 during mid-day trading on Friday, reaching $25.89. The stock had a trading volume of 7,362,591 shares, compared to its average volume of 7,696,435. The firm has a market cap of $14.02 billion, a P/E ratio of 26.15, a PEG ratio of 3.26 and a beta of 1.37. MGM Resorts International has a 12 month low of $21.61 and a 12 month high of $32.88. The company has a debt-to-equity ratio of 1.31, a current ratio of 0.78 and a quick ratio of 0.75.

MGM Resorts International (NYSE:MGM) last posted its quarterly earnings results on Monday, April 29th. The company reported $0.12 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.16 by ($0.04). MGM Resorts International had a return on equity of 4.03% and a net margin of 2.26%. The firm had revenue of $3.18 billion during the quarter, compared to the consensus estimate of $3.12 billion. During the same quarter in the previous year, the company earned $0.38 earnings per share. The business’s revenue for the quarter was up 12.6% compared to the same quarter last year. Equities analysts anticipate that MGM Resorts International will post 0.97 earnings per share for the current year.

The business also recently announced a quarterly dividend, which will be paid on Friday, June 14th. Investors of record on Monday, June 10th will be given a dividend of $0.13 per share. The ex-dividend date of this dividend is Friday, June 7th. This represents a $0.52 dividend on an annualized basis and a dividend yield of 2.01%. MGM Resorts International’s dividend payout ratio is 52.53%.

MGM has been the topic of several analyst reports. Deutsche Bank reiterated a “hold” rating and issued a $33.00 target price on shares of MGM Resorts International in a research note on Monday, January 28th. Morgan Stanley upped their target price on shares of MGM Resorts International from $33.00 to $34.00 and gave the company an “overweight” rating in a report on Thursday, February 14th. Zacks Investment Research cut shares of MGM Resorts International from a “hold” rating to a “strong sell” rating in a report on Monday, February 18th. Finally, Credit Suisse Group reaffirmed a “neutral” rating and set a $30.00 target price on shares of MGM Resorts International in a report on Wednesday, March 20th. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating and five have issued a buy rating to the stock. MGM Resorts International has a consensus rating of “Hold” and an average price target of $33.50.

In other news, Director Paul J. Salem bought 800,000 shares of the company’s stock in a transaction dated Wednesday, May 8th. The shares were purchased at an average price of $25.40 per share, for a total transaction of $20,320,000.00. Following the completion of the purchase, the director now owns 800,000 shares in the company, valued at approximately $20,320,000. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Mary Christine Gay bought 3,700 shares of the company’s stock in a transaction dated Wednesday, March 6th. The stock was purchased at an average price of $27.27 per share, for a total transaction of $100,899.00. Following the purchase, the director now owns 18,036 shares of the company’s stock, valued at approximately $491,841.72. The disclosure for this purchase can be found here. Insiders own 3.47% of the company’s stock.

Several large investors have recently modified their holdings of the stock. Corvex Management LP boosted its position in shares of MGM Resorts International by 50.5% during the first quarter. Corvex Management LP now owns 15,692,772 shares of the company’s stock worth $402,677,000 after acquiring an additional 5,264,090 shares during the last quarter. Geode Capital Management LLC boosted its position in shares of MGM Resorts International by 8.9% during the first quarter. Geode Capital Management LLC now owns 6,957,940 shares of the company’s stock worth $178,222,000 after acquiring an additional 570,116 shares during the last quarter. Bank of America Corp DE boosted its position in shares of MGM Resorts International by 380.3% during the fourth quarter. Bank of America Corp DE now owns 5,827,720 shares of the company’s stock worth $141,381,000 after acquiring an additional 4,614,420 shares during the last quarter. Northern Trust Corp boosted its position in shares of MGM Resorts International by 1.0% during the first quarter. Northern Trust Corp now owns 5,138,759 shares of the company’s stock worth $131,862,000 after acquiring an additional 51,123 shares during the last quarter. Finally, Barrow Hanley Mewhinney & Strauss LLC bought a new position in shares of MGM Resorts International during the fourth quarter worth $122,017,000. Hedge funds and other institutional investors own 80.66% of the company’s stock.

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MGM Resorts International Company Profile

MGM Resorts International, through its subsidiaries, owns and operates integrated casino, hotel, and entertainment resorts in the United States and Macau. The company operates through three segments: Las Vegas Strip Resorts, Regional Operations, and MGM China. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities.

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