#MGM Resorts International (MGM) #Bonds Drop 0.7% During #Trading Insider #Trade

An issue of MGM Resorts International (NYSE:MGM) debt fell 0.7% as a percentage of its face value during trading on Monday following insider selling activity. The high-yield issue of debt has a 4.625% coupon and is set to mature on September 1, 2026. The bonds in the issue are now trading at $101.50 and were trading at $100.50 one week ago. Price moves in a company’s debt in credit markets often predict parallel moves in its share price. Specifically, Director Rose Mckinney-James sold 3,097 shares of the stock in a transaction that occurred on Wednesday, September 6th. The stock was sold at an average price of $33.83, for a total transaction of $104,771.51. Following the completion of the transaction, the director now directly owns 10,724 shares of the company’s stock, valued at $362,792.92. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CEO James Murren sold 259,760 shares of the stock in a transaction that occurred on Thursday, September 7th. The shares were sold at an average price of $34.19, for a total value of $8,881,194.40. Following the transaction, the chief executive officer now directly owns 71,442 shares of the company’s stock, valued at $2,442,601.98. The disclosure for this sale can be found here. Over the last three months, insiders have sold 776,276 shares of company stock valued at $26,313,361. 12.20% of the stock is owned by corporate insiders.

A number of equities analysts recently commented on MGM shares. BidaskClub lowered MGM Resorts International from a “strong-buy” rating to a “buy” rating in a research note on Tuesday, August 1st. Susquehanna Bancshares Inc restated a “neutral” rating and set a $33.00 price objective (down from $38.00) on shares of MGM Resorts International in a research report on Tuesday, October 3rd. Barclays PLC restated an “overweight” rating on shares of MGM Resorts International in a research report on Monday, October 2nd. Stifel Nicolaus downgraded MGM Resorts International from a “buy” rating to a “hold” rating and decreased their price objective for the company from $38.00 to $33.00 in a research report on Wednesday, October 18th. Finally, UBS AG downgraded MGM Resorts International from a “positive” rating to a “neutral” rating in a research report on Tuesday, October 3rd. Six investment analysts have rated the stock with a hold rating and thirteen have given a buy rating to the company. The company presently has a consensus rating of “Buy” and a consensus target price of $36.50.

The company has a current ratio of 1.02, a quick ratio of 0.98 and a debt-to-equity ratio of 1.26. The firm has a market capitalization of $19,186.42, a PE ratio of 29.99, a PEG ratio of 7.70 and a beta of 1.42.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 15th. Shareholders of record on Monday, December 11th will be given a dividend of $0.11 per share. The ex-dividend date is Friday, December 8th. This represents a $0.44 dividend on an annualized basis and a yield of 1.31%. MGM Resorts International’s dividend payout ratio (DPR) is presently 43.14%.

MGM Resorts International announced that its Board of Directors has authorized a stock repurchase program on Tuesday, September 5th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the company to repurchase up to 5.3% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board believes its stock is undervalued.

Several hedge funds and other institutional investors have recently modified their holdings of the company. Steward Partners Investment Advisory LLC purchased a new stake in shares of MGM Resorts International in the third quarter worth approximately $197,000. FrontFour Capital Group LLC raised its holdings in shares of MGM Resorts International by 6.2% in the third quarter. FrontFour Capital Group LLC now owns 340,902 shares of the company’s stock worth $11,110,000 after buying an additional 19,782 shares during the period. Ameritas Investment Partners Inc. purchased a new stake in shares of MGM Resorts International in the third quarter worth approximately $362,000. Neuberger Berman Group LLC raised its holdings in shares of MGM Resorts International by 1.1% in the third quarter. Neuberger Berman Group LLC now owns 1,202,010 shares of the company’s stock worth $39,174,000 after buying an additional 12,867 shares during the period. Finally, California Public Employees Retirement System raised its holdings in shares of MGM Resorts International by 4.1% in the third quarter. California Public Employees Retirement System now owns 1,013,962 shares of the company’s stock worth $33,045,000 after buying an additional 40,217 shares during the period. Hedge funds and other institutional investors own 77.70% of the company’s stock.

MGM Resorts International Company Profile

MGM Resorts International is a holding company. The Company, through its subsidiaries, owns and operates casino resorts. The Company operates in two segments: domestic resorts and MGM China. Its domestic resorts segment consists of non-gaming operations, including hotel, food and beverage, entertainment and other non-gaming amenities.

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