The stock price of MGM Resorts International (NYSE: MGM) has jumped by 1.52 compared to previous close of 32.85. Despite this, the company has seen a gain of 3.15% in its stock price over the last five trading days. zacks.com reported 2025-01-20 that MGM’s BetMGM partners with Fremantle to expand its online casino with iconic game show content.
Is It Worth Investing in MGM Resorts International (NYSE: MGM) Right Now?
The price-to-earnings ratio for MGM Resorts International (NYSE: MGM) is 11.93x, which is above its average ratio. Moreover, the 36-month beta value for MGM is 2.21. Analysts have varying opinions on the stock, with 14 analysts rating it as a “buy,” 5 as “overweight,” 4 as “hold,” and 0 as “sell.”
The public float for MGM is 229.99M and currently, short sellers hold a 7.01% of that float. On January 22, 2025, MGM’s average trading volume was 4.14M shares.
MGM’s Market Performance
The stock of MGM Resorts International (MGM) has seen a 3.15% increase in the past week, with a -5.71% drop in the past month, and a -17.82% fall in the past quarter. The volatility ratio for the week is 2.73%, and the volatility levels for the past 30 days are at 2.79% for MGM. The simple moving average for the past 20 days is -0.82% for MGM’s stock, with a -14.93% 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 previous 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 previous year.
MGM Trading at -6.54% 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 -30.87% of loss for the given period.
Volatility was left at 2.79%, however, over the last 30 days, the volatility rate increased by 2.73%, as shares sank -1.33% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -7.95% lower at present.
During the last 5 trading sessions, MGM rose by +3.15%, which changed the moving average for the period of 200-days by -28.66% in comparison to the 20-day moving average, which settled at $33.63. In addition, MGM Resorts International saw -3.75% 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 51,000 shares at the price of $36.57 back on Dec 13 ’24. After this action, Meister Keith A. now owns 5,687,478 shares of MGM Resorts International, valued at $1,865,070 using the latest closing price.
Corvex Management LP, the Affiliate of Director (1) of MGM Resorts International, proposed sale 51,000 shares at $36.60 during a trade that took place back on Dec 13 ’24, which means that Corvex Management LP is holding shares at $1,866,600 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
- 0.42 for the gross margin
The net margin for MGM Resorts International stands at 0.05. The total capital return value is set at 0.04. Equity return is now at value 25.08, with 2.12 for asset returns.
Based on MGM Resorts International (MGM), the company’s capital structure generated 0.91 points at debt to capital in total, while cash flow to debt ratio is standing at 0.07. The debt to equity ratio resting at 9.9. The interest coverage ratio of the stock is 3.88.
Currently, EBITDA for the company is 2.75 billion with net debt to EBITDA at 11.03. When we switch over and look at the enterprise to sales, we see a ratio of 2.26. The receivables turnover for the company is 14.67for trailing twelve months and the total asset turnover is 0.4. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.24.
Conclusion
To wrap up, the performance of MGM Resorts International (MGM) has been bad in recent times. The stock has received a mixed 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.
