Element Capital Management LLC Buys New Holdings in MGM Resorts International (MGM)

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Element Capital Management LLC bought a new position in MGM Resorts International (NYSE:MGM) during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 7,858 shares of the company’s stock, valued at approximately $275,000.

Several other hedge funds also recently added to or reduced their stakes in MGM. Maverick Capital Ltd. lifted its holdings in shares of MGM Resorts International by 26.4% in the fourth quarter. Maverick Capital Ltd. now owns 8,867,800 shares of the company’s stock worth $296,096,000 after buying an additional 1,852,880 shares in the last quarter. Millennium Management LLC lifted its holdings in shares of MGM Resorts International by 248.2% in the fourth quarter. Millennium Management LLC now owns 2,458,545 shares of the company’s stock worth $82,091,000 after buying an additional 1,752,560 shares in the last quarter. Renaissance Technologies LLC purchased a new position in shares of MGM Resorts International in the fourth quarter worth $53,202,000. Carillon Tower Advisers Inc. purchased a new position in shares of MGM Resorts International in the fourth quarter worth $37,539,000. Finally, Park West Asset Management LLC purchased a new position in shares of MGM Resorts International in the fourth quarter worth $32,664,000. 82.45% of the stock is currently owned by hedge funds and other institutional investors.

Shares of MGM opened at $30.07 on Friday. MGM Resorts International has a fifty-two week low of $29.53 and a fifty-two week high of $38.41. The firm has a market capitalization of $16.88 billion, a P/E ratio of 29.48, a price-to-earnings-growth ratio of 1.95 and a beta of 1.39. The company has a current ratio of 0.67, a quick ratio of 0.64 and a debt-to-equity ratio of 1.12.

MGM Resorts International (NYSE:MGM) last announced its quarterly earnings results on Thursday, April 26th. The company reported $0.29 earnings per share for the quarter, missing the consensus estimate of $0.31 by ($0.02). MGM Resorts International had a return on equity of 5.45% and a net margin of 17.88%. The business had revenue of $2.82 billion during the quarter, compared to the consensus estimate of $2.82 billion. During the same quarter in the prior year, the firm posted $0.38 EPS. The company’s revenue for the quarter was up 3.8% on a year-over-year basis. analysts anticipate that MGM Resorts International will post 1.28 EPS for the current year.

MGM Resorts International declared that its board has authorized a share buyback plan on Thursday, May 10th that permits the company to buyback $2.00 billion in outstanding shares. This buyback authorization permits the company to buy up to 10.9% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s leadership believes its stock is undervalued.

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 15th. Shareholders of record on Friday, June 8th were given a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a yield of 1.60%. The ex-dividend date was Thursday, June 7th. MGM Resorts International’s dividend payout ratio (DPR) is 47.06%.

In other MGM Resorts International news, Director Rose Mckinney-James sold 5,624 shares of the business’s stock in a transaction on Friday, June 1st. The shares were sold at an average price of $31.89, for a total transaction of $179,349.36. Following the transaction, the director now owns 3,870 shares in the company, valued at $123,414.30. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Mary Christine Gay sold 1,585 shares of the business’s stock in a transaction on Tuesday, June 5th. The shares were sold at an average price of $30.94, for a total transaction of $49,039.90. Following the transaction, the director now owns 14,336 shares in the company, valued at approximately $443,555.84. The disclosure for this sale can be found here. Insiders have sold 11,049 shares of company stock worth $349,925 in the last quarter. Company insiders own 12.20% of the company’s stock.

Several research firms have recently commented on MGM. Morgan Stanley boosted their target price on shares of MGM Resorts International from $40.00 to $41.00 and gave the stock a “buy” rating in a report on Tuesday, March 27th. ValuEngine raised shares of MGM Resorts International from a “hold” rating to a “buy” rating in a report on Wednesday, April 18th. Zacks Investment Research downgraded shares of MGM Resorts International from a “buy” rating to a “hold” rating in a report on Tuesday, May 1st. Telsey Advisory Group lowered their target price on shares of MGM Resorts International from $39.00 to $34.00 and set a “market perform” rating on the stock in a report on Friday, April 27th. Finally, UBS Group raised shares of MGM Resorts International from a “neutral” rating to a “positive” rating in a report on Monday, April 23rd. Five analysts have rated the stock with a hold rating and eleven have given a buy rating to the company’s stock. The company currently has a consensus rating of “Buy” and an average target price of $38.29.

MGM Resorts International Company Profile

MGM Resorts International, through its subsidiaries, owns and operates integrated casino, hotel, and entertainment resorts in the United States and China. The company operates through two segments, Domestic Resorts and MGM China. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities.

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Institutional Ownership by Quarter for MGM Resorts International (NYSE:MGM)

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