Investment advisory firm Nisa Investment Advisors LLC recently disclosed a decrease in its holdings in MGM Resorts International (NYSE:MGM) by 5% during the fiscal fourth quarter. Despite this reduction, Nisa Investment Advisors LLC owns about $5.3 million worth of stock in the company. This news raised eyebrows among stock analysts, who provided a variety of opinions that provide insight into the future prospects of this powerful casino entertainment company.
Wells Fargo & Company gave the stock an “overweight” rating and raised their target price from $53 to $54 in January 2021. Similarly, Barclays raised its price target on the stock from $59 to $60 and gave an “overweight” rating in April. Deutsche Bank Aktiengesellschaft raised its rating on MGM Resorts International to $53 from $49 two months ago. Conversely, JMP Securities remains bullish on MGM’s growth prospects and continues to reiterate its “market outperform” rating, which was accompanied by a price target of approximately $60.
The narrowing diversity of opinion shows two things – first, that most equity analysts are optimistic about the company’s ability to generate revenue despite being squeezed by economic difficulties caused by restrictions related to the COVID-19 pandemic. Second, it suggests that expected longer-term trends (eg post-pandemic growth, structural demand for tourism) are likely to outweigh factors such as short-term global uncertainty caused by national lockdowns and restrictions; however, experts still see short-term turbulence ahead.
As for MGM Resorts International itself, trading opened at roughly $44 per share Friday on the NYSE MGM, with a market capitalization now of more than $16 billion. The company’s beta is around 2, indicating that it is more volatile than benchmarks such as the S&P 500, but is still within acceptable limits for most investors.
In conclusion, despite the near-term uncertainty facing global economies due to the COVID-19 pandemic, MGM Resorts International continues to hold strong positions in the gaming and hospitality sectors. Investors may get mixed ideas from different analyst opinions, but one thing is certain: smart investments require a long-term view and attention to potential future trends.
Investors are taking interest in MGM Resorts International as the company reports strong earnings
MGM Resorts International, a well-known hospitality and entertainment conglomerate, recently attracted the interest of major investors. Multiple organizations have disclosed their buying and selling of shares in the company in the last quarter. One such investor, Koshinski Asset Management Inc. disclosed a new stake position valued at $1,034,000 in 2020Q3 Bay Colony Advisory Group Inc. reported an increase of 2.6% from last year, by acquiring an additional 340 shares of MGM Resorts International, bringing its total holdings to 13,220 shares, valued at $393,000.
News of purchased shares is not limited to these two investors. Brinker Capital Investments LLC also declared it now owns 8,973 shares worth $267,000 after purchasing an additional 458 shares during the previous period to add to its 5.4% growth rate. US Bancorp DE also boosted its holdings by acquiring an additional 412 shares in the third quarter valued at $987,000.
About Strategic Wealth Advisors Group LLC’s role in MGM Resorts International’s Q3 earnings report: they bought an additional 464 shares of the company’s stock valued at $799,000 compared to last year, a 1.8% growth rate.
It should be noted that institutional investors hold approximately 82.77% of the company’s shares, which equates to approximately US$18 billion.
Coinciding with this news is the sale by the company’s CEO William Hornbuckle of his share, consisting of a total value of – get this – $4,920,000! In stark contrast to Hornbuckle’s actions is COO Corey Ian Sanders’ sale of sixty thousand shares worth about $2,400,000 on January 23rd, while insiders sold nearly four hundred thousand shares worth nearly seventeen million dollars last quarter (the insiders company individuals own only about 2% of their own parent company).
Despite the internal selloff, MGM Resorts International managed to report a surprising performance in its latest earnings call on February 8. With analysts initially forecasting losses of ($1.60) per share, MGM surprisingly earned $0.69 per share as Q4 reported roughly $3.59 billion versus expectations for revenue of about $3.35 billion. MGM Resorts International’s net margin stands at approximately 11%, with the firm’s return on equity averaging around minus 3%. Analysts are projecting a full-year earnings forecast of $0.58 earnings per share.
In conclusion, due to its recent solid financial performance and board approval, MGM Resorts International has authorized up to $2 billion in share buybacks that its shareholders can expect over time through market purchases, hinting that even more good news may come from this successful organization in the coming days.