MGM Resorts International (MGM) to Issue $0.12 Quarterly Dividend

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MGM Resorts International (NYSE:MGM) declared a quarterly dividend on Friday, August 3rd, Wall Street Journal reports. Investors of record on Monday, September 10th will be paid a dividend of 0.12 per share on Friday, September 14th. This represents a $0.48 dividend on an annualized basis and a yield of 1.74%. The ex-dividend date of this dividend is Friday, September 7th.

MGM Resorts International has a payout ratio of 41.4% meaning its dividend is sufficiently covered by earnings. Equities analysts expect MGM Resorts International to earn $1.37 per share next year, which means the company should continue to be able to cover its $0.48 annual dividend with an expected future payout ratio of 35.0%.

Shares of NYSE:MGM opened at $27.66 on Thursday. MGM Resorts International has a 1 year low of $26.85 and a 1 year high of $38.41. The stock has a market cap of $15.59 billion, a P/E ratio of 27.12, a price-to-earnings-growth ratio of 3.73 and a beta of 1.44. The company has a current ratio of 0.68, a quick ratio of 0.64 and a debt-to-equity ratio of 1.25.

MGM Resorts International (NYSE:MGM) last announced its quarterly earnings results on Thursday, August 2nd. The company reported $0.26 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.26. MGM Resorts International had a return on equity of 5.07% and a net margin of 17.11%. The company had revenue of $2.86 billion for the quarter, compared to the consensus estimate of $2.97 billion. During the same quarter in the previous year, the business earned $0.28 EPS. MGM Resorts International’s revenue was up 7.8% compared to the same quarter last year. analysts expect that MGM Resorts International will post 1.16 earnings per share for the current fiscal year.

In related news, CFO Daniel D’arrigo sold 29,377 shares of the company’s stock in a transaction that occurred on Friday, August 31st. The stock was sold at an average price of $29.23, for a total value of $858,689.71. Following the sale, the chief financial officer now owns 260,676 shares in the company, valued at approximately $7,619,559.48. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Alexis Herman sold 1,750 shares of the company’s stock in a transaction that occurred on Thursday, August 16th. The stock was sold at an average price of $28.28, for a total value of $49,490.00. The disclosure for this sale can be found here. Insiders sold a total of 34,627 shares of company stock worth $1,009,155 in the last 90 days. 12.20% of the stock is currently owned by company insiders.

MGM Resorts International declared that its board has authorized a share repurchase program 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 programs are often a sign that the company’s board believes its shares are undervalued.

A number of research analysts have weighed in on MGM shares. Nomura reduced their target price on MGM Resorts International from $40.00 to $39.00 and set a “buy” rating on the stock in a report on Monday, July 9th. Morgan Stanley reduced their target price on MGM Resorts International from $38.00 to $34.00 and set a “buy” rating on the stock in a report on Friday, August 3rd. Jefferies Financial Group reiterated a “buy” rating on shares of MGM Resorts International in a report on Wednesday, August 1st. Stifel Nicolaus reiterated a “hold” rating and set a $33.00 target price (down previously from $37.00) on shares of MGM Resorts International in a report on Friday, August 3rd. Finally, Zacks Investment Research upgraded MGM Resorts International from a “strong sell” rating to a “hold” rating in a report on Tuesday, June 26th. One analyst has rated the stock with a sell rating, six have assigned a hold rating and ten have given a buy rating to the company’s stock. The stock presently has an average rating of “Buy” and a consensus price target of $37.07.

About MGM Resorts International

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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Dividend History for MGM Resorts International (NYSE:MGM)

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