CHIEF CUSTOMER DEV OFFICER Baldwin Robert sold 108,000 shares in MGM Resorts International (NYSE:MGM) for $279,486 in transaction occurred on 2018/11/02. After making this transaction, the CHIEF CUSTOMER DEV OFFICER owns a direct stake of 3,040,200 shares, worth $7,825,608, as per the last closing price. On 2018/11/02 James Phyllis, CHIEF DIV & CORP RESP OFFICER at MGM, dumped 15,815 shares at an average price of $28.26 per share. The selling total is valued at $368,592.
Separately, it had been reported that some other MGM insiders also took part of the insider trading activity. EXECUTIVE VICE PRESIDENT & CFO, D’Arrigo Daniel had divested 58,676 shares for $185,676 through a trade on 2018/08/31. Following this activity, the insider holds 1,708,645 shares worth $5,198,928 as of recent close. Wall Street’s most bullish MGM Resorts International (NYSE:MGM) analysts are predicting the share price to blow past $39 per share during the next 12 months. The current median share price forecast by them is $34, suggesting that the stock could increase 21.43% in that time frame. The average price target of $33.53 calls for a nearly 19.75% increase in the stock price.
MGM Resorts International (MGM) trading activity significantly weakened as the volume at ready counter decreased to 8,961,214 shares versus 10,011,350 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 11,183,063 shares. The share price rose 0% in recent trade and currently has a stock-market value of $14.76B. The shares finished at $28, after trading as low as $27.69 earlier in the session. It hit an intraday high Friday at $28.15. The stock is now 29.57% above against its bear-market low of $21.61 on December 26, 2018. It has retreated -37.18% since it’s 52-week high of $38.41 reached in January. Now the market price is down -17.45% on the year and up 15.42% YTD.
MGM’s 50 day simple moving average (SMA 50) price is $26.08 and its 200-day simple moving average (SMA 200) price is $29.1. The company’s stock currently has a total float of 487.38M shares. Its weekly volatility is hovering around 3.7% and felt 4.4% volatility in price over a month. On the upside, the share price will test short term resistance at around $28.2. On a downside, the stock is likely to find some support, which begins at $27.74. The failure to get near-term support could push it to $27.49.
It had seen a new analyst call from Bernstein, which initiated the stock at Mkt Perform on November 15. Analysts at Telsey Advisory Group, maintained the company shares at Market Perform on August 03 but switched target price from $34 to $31. Brokerage firm Stifel, looks cautious as they stick to prior recommendation of Hold, in a call on August 03. However, they did change the target price from $37 to $33.
When looking at valuations, MGM Resorts International (MGM) has a pricey P/E of 34.61x as compared to industry average of 18.36x. Moreover, it trades for 21.37 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.21x price/book and 1.31x price/sales. Compared to others, MGM Resorts International is in a different league with regards to profitability, having net margins of 16.4%. To put some perspective around this, the industry’s average net margin is 18.63%. MGM’s ROE is 25.9%, which is also considerably worse than the industry’s ROE of 30.49%. It’s also not liquid in the near term, with a current ratio of 0.7. The stock has a debt/capital of 2.16.
Shares of MGM Resorts International (MGM) have gained 11.2% since the company’s Mar-19 earnings report. Over the past 12 fiscal quarters, MGM Resorts International (NYSE:MGM) has topped consensus earnings estimates in 7 quarters (58%), missed earnings in 3 quarters (25%), whereas at 2 occasion EPS met analyst expectations. MGM last reported earnings on October 30, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.25 per share, -99.14% change on the same period last year. That was better than consensus for $0.19. Revenue for the recent quarter stood at $3.03 billion, up 7% on last year and above the $2.95 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $3.09 billion to $3.31 billion, which should be compared with $3.16 billion generated last year. EPS is seen in a range of $0.29 to $0.47, against the $0.45 reported a year ago.