MGM Resorts International (NYSE: MGM)’s stock price has decreased by -1.72 compared to its previous closing price of 41.19. However, the company has seen a 0.60% increase in its stock price over the last five trading sessions. prnewswire.com reported 2024-10-21 that W Las Vegas marks the latest step in the long-term strategic licensing agreement between MGM Resorts International and Marriott International LAS VEGAS, Oct. 21, 2024 /PRNewswire/ — MGM Resorts International (NYSE: MGM) and Marriott International, Inc. (Nasdaq: MAR) announced plans to convert an iconic property on the Las Vegas Strip to the W Hotels brand within the Marriott Bonvoy® portfolio, continuing the brand’s storied evolution. Anticipated to complete its conversion later this year, W Las Vegas marks the latest step in the companies’ long-term strategic licensing agreement announced in July 2023.
Is It Worth Investing in MGM Resorts International (NYSE: MGM) Right Now?
The price-to-earnings ratio for MGM Resorts International (NYSE: MGM) is 15.29x, which is above its average ratio. Moreover, the 36-month beta value for MGM is 2.24. Analysts have varying opinions on the stock, with 9 analysts rating it as a “buy,” 4 as “overweight,” 4 as “hold,” and 0 as “sell.”
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The public float for MGM is 235.99M and currently, short sellers hold a 6.51% of that float. On October 22, 2024, MGM’s average trading volume was 4.81M shares.
MGM’s Market Performance
MGM’s stock has seen a 0.60% increase for the week, with a 8.50% rise in the past month and a -7.54% fall in the past quarter. The volatility ratio for the week is 2.26%, and the volatility levels for the past 30 days are at 2.63% for MGM Resorts International The simple moving average for the past 20 days is 2.22% for MGM’s stock, with a -2.44% simple moving average for the past 200 days.
Analysts’ Opinion of MGM
Many brokerage firms have already submitted their reports for MGM stocks, with BTIG Research repeating the rating for MGM by listing it as a “Buy.” The predicted price for MGM in the upcoming period, according to BTIG Research is $52 based on the research report published on July 03, 2024 of the current year 2024.
Susquehanna, on the other hand, stated in their research note that they expect to see MGM reach a price target of $54. The rating they have provided for MGM stocks is “Positive” according to the report published on May 02nd, 2024.
Seaport Research Partners gave a rating of “Buy” to MGM, setting the target price at $56 in the report published on April 15th of the current year.
MGM Trading at 5.84% from the 50-Day Moving Average
After a stumble in the market that brought MGM to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -16.09% of loss for the given period.
Volatility was left at 2.63%, however, over the last 30 days, the volatility rate increased by 2.26%, as shares surge +9.85% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +9.02% upper at present.
During the last 5 trading sessions, MGM rose by +0.60%, which changed the moving average for the period of 200-days by -8.73% in comparison to the 20-day moving average, which settled at $39.60. In addition, MGM Resorts International saw -9.40% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at MGM starting from Meister Keith A., who sale 121,000 shares at the price of $36.72 back on Sep 13 ’24. After this action, Meister Keith A. now owns 5,738,478 shares of MGM Resorts International, valued at $4,443,249 using the latest closing price.
Corvex Management LP, the Affiliate of Director (1) of MGM Resorts International, proposed sale 121,000 shares at $34.97 during a trade that took place back on Sep 13 ’24, which means that Corvex Management LP is holding shares at $4,231,370 based on the most recent closing price.
Stock Fundamentals for MGM
Current profitability levels for the company are sitting at:
- 0.1 for the present operating margin
- 0.43 for the gross margin
The net margin for MGM Resorts International stands at 0.05. The total capital return value is set at 0.05. Equity return is now at value 23.05, with 2.08 for asset returns.
Based on MGM Resorts International (MGM), the company’s capital structure generated 0.67 points at debt to capital in total, while cash flow to debt ratio is standing at 0.37. The debt to equity ratio resting at 2.0. The interest coverage ratio of the stock is 4.01.
Currently, EBITDA for the company is 2.4 billion with net debt to EBITDA at 11.54. When we switch over and look at the enterprise to sales, we see a ratio of 2.44. The receivables turnover for the company is 13.93for trailing twelve months and the total asset turnover is 0.41. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.47.
Conclusion
To wrap up, the performance of MGM Resorts International (MGM) has been mixed in recent times. The stock has received a bullish of “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
