Stock Traders Purchase Large Volume of Call Options on MGM Resorts International (MGM)
MGM Resorts International (NYSE:MGM) saw some unusual options trading activity on Thursday. Investors acquired 28,097 call options on the company. This represents an increase of approximately 322% compared to the typical volume of 6,660 call options.
In related news, Director Mary Christine Gay sold 3,000 shares of MGM Resorts International stock in a transaction dated Monday, August 7th. The shares were sold at an average price of $31.88, for a total transaction of $95,640.00. Following the completion of the sale, the director now owns 11,208 shares in the company, valued at approximately $357,311.04. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Corey Ian Sanders sold 16,446 shares of MGM Resorts International stock in a transaction dated Wednesday, September 6th. The shares were sold at an average price of $33.63, for a total transaction of $553,078.98. Following the sale, the insider now owns 198,058 shares of the company’s stock, valued at approximately $6,660,690.54. The disclosure for this sale can be found here. Insiders have sold a total of 770,652 shares of company stock valued at $26,057,626 in the last quarter. 12.20% of the stock is currently owned by company insiders.
A number of institutional investors have recently made changes to their positions in MGM. IFP Advisors Inc increased its stake in MGM Resorts International by 0.7% in the first quarter. IFP Advisors Inc now owns 4,558 shares of the company’s stock valued at $125,000 after purchasing an additional 31 shares during the last quarter. Toronto Dominion Bank increased its stake in MGM Resorts International by 28.0% in the first quarter. Toronto Dominion Bank now owns 5,020 shares of the company’s stock valued at $138,000 after purchasing an additional 1,099 shares during the last quarter. Pacad Investment Ltd. purchased a new position in MGM Resorts International in the second quarter valued at approximately $169,000. Global X Management Co. LLC increased its stake in MGM Resorts International by 30.4% in the first quarter. Global X Management Co. LLC now owns 7,403 shares of the company’s stock valued at $203,000 after purchasing an additional 1,724 shares during the last quarter. Finally, Colony Group LLC purchased a new position in MGM Resorts International in the second quarter valued at approximately $203,000. Institutional investors own 75.22% of the company’s stock.
A number of research analysts have commented on MGM shares. Instinet reissued a “buy” rating and set a $40.00 target price (up previously from $35.00) on shares of MGM Resorts International in a research report on Monday, June 19th. Zacks Investment Research downgraded shares of MGM Resorts International from a “hold” rating to a “sell” rating in a research report on Wednesday, June 28th. BidaskClub downgraded shares of MGM Resorts International from a “strong-buy” rating to a “buy” rating in a research report on Saturday, July 1st. Deutsche Bank AG reissued a “buy” rating and set a $34.00 target price on shares of MGM Resorts International in a research report on Monday, July 3rd. Finally, Morgan Stanley reissued an “overweight” rating and set a $34.00 target price (up previously from $33.00) on shares of MGM Resorts International in a research report on Monday, July 10th. One investment analyst has rated the stock with a sell rating, two have issued a hold rating and nineteen have issued a buy rating to the stock. The stock has an average rating of “Buy” and a consensus target price of $35.12.
Shares of MGM Resorts International (NYSE:MGM) opened at 33.25 on Friday. The firm has a market capitalization of $19.13 billion, a PE ratio of 19.69 and a beta of 1.48. MGM Resorts International has a 1-year low of $24.26 and a 1-year high of $34.65. The company has a 50-day moving average of $32.23 and a 200-day moving average of $30.39.
MGM Resorts International (NYSE:MGM) last released its earnings results on Thursday, July 27th. The company reported $0.31 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.28 by $0.03. MGM Resorts International had a net margin of 9.26% and a return on equity of 7.97%. The firm had revenue of $2.64 billion for the quarter, compared to analyst estimates of $2.67 billion. During the same period in the prior year, the firm earned $0.29 earnings per share. The business’s quarterly revenue was up 16.4% compared to the same quarter last year. Equities research analysts predict that MGM Resorts International will post $1.29 EPS for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Friday, September 15th. Shareholders of record on Monday, September 11th will be paid a $0.11 dividend. The ex-dividend date of this dividend is Friday, September 8th. This represents a $0.44 annualized dividend and a yield of 1.32%. MGM Resorts International’s dividend payout ratio is currently 26.04%.
MGM Resorts International declared that its Board of Directors has approved a stock buyback plan on Tuesday, September 5th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 5.3% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its stock is undervalued.
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MGM Resorts International Company Profile
MGM Resorts International is a holding company. The Company, through its subsidiaries, owns and operates casino resorts. The Company operates in two segments: domestic resorts and MGM China. Its domestic resorts segment consists of non-gaming operations, including hotel, food and beverage, entertainment and other non-gaming amenities.
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