Will MGM Resorts International (NYSE:MGM) rip to new highs anytime soon? Who knows, but much of it depends on what analysts believe and what action the company’s insiders pursue. The stock closed higher on 06 December. The shares accumulated 0.42 points or 1.56 percent at $27.42 with a heavy trade volume of 9.326 million shares. After opening the session at $26.28, the shares went as high as $27.42 and as low as $25.91, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $14.7 billion and now has 534.24 million shares outstanding. MGM Resorts International (MGM) stock has lost -0.72 percent of market value in 21 trading days.
MGM stock has a trailing 3-year beta of 1.42, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.81 a share in the trailing twelve months. The stock’s value has fallen -17.88 percent year to date (YTD) against a decline of -19.21 percent in 12 month’s time. The company’s shares still trade -28.61 percent away from its 1-year high of $38.41 and 15.16 percent up from 52-week low of $23.81. The average consensus rating on the company is 2.1, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.
MGM Resorts International (MGM) will probably climb 21.37 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $39-month high price target. This represents a whopping 42.23 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $34.5, which represents a return potential of 25.82 percent when compared to the closing price of the stock of $27.42 on Thursday, December 06. The lowest price target for the stock is $27 — slightly more than -1.53 percent from MGM’s current share price.
History has shown that shares in MGM Resorts International have gone down on 18 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings.
Let’s take a look at some insider activity at MGM Resorts International (NYSE:MGM) and see the pattern. The earliest insider trade took place on 11/02/2018. Baldwin Robert parted with a total of 108 thousand shares of company at average share price of $28.15. The total for the sales was set at $3.04 million. After this transaction, the CHIEF CUSTOMER DEV OFFICER account balance stood at 279.49 thousand shares. The stock lost -2.59 percent since that insider sale. On 11/02/2018, James Phyllis, CHIEF DIV & CORP RESP OFFICER, sold 15.82 thousand shares at a price per share of $28.26. This removed 446.93 thousand shares from the insider’s fortune and the stock saw a -2.97 percent retreat in value since the news became public. This transaction left 13.16 thousand shares in the CHIEF DIV & CORP RESP OFFICER account.
On 08/31/2018, EXECUTIVE VICE PRESIDENT & CFO D’Arrigo Daniel performed a sale transaction worth $1.71 million. This sale at $29.12 each has eliminated 58.68 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -5.84 percent decrease since the transaction was reported. The insider now is left with 185.68 thousand shares remaining in the account. Herman Alexis, who performs the Director job, sold 1.75 thousand shares for $49.49 thousand. The disposal occurred on 08/16/2018 was priced at $28.28 per share. The share price plunged -3.04 percent since the reporting date. Herman Alexis now left with a stake of 13.29 thousand MGM stock worth $364.36 thousand after the insider selling.
The stock is currently hovering around the first support level of $26.41. Below this, the next support is placed in the zone of $25.41. Till the time, the MGM stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 54 on daily chart, which may remain a cause for concern. If the price breaks below $25.41 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $27.92 mark may result into a pull-back move towards $28.43 level.
Shares of MGM Resorts International (MGM) are trading at a P/E ratio of 18.18 times earnings reported for the past 12 months. The industry MGM operates in has an average P/E of 44.95. Its P/E ratio went as low as 15.01X and as high as 15.01 over the 5-year span.Further, it is sporting a 1.3 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3.65. 41.3 percent is the gross profit margin for MGM Resorts International and operating margin sits at 12 percent. Along with this, the net profit margin is 16.4 percent.