MGM Resorts International (NYSE:MGM) has a beta of 2.42, a 12-month trailing P/E ratio of 10.68. The stock’s Relative Strength Index (RSI) is 73.86, with weekly volatility at 3.82% and ATR at 1.33. The MGM stock’s 52-week price range has touched low of $5.90 and a $34.63 high. Its shares traded higher over the last trading session, gaining 1.91% on 12/03/20. The shares fell to a low of $29.52 before closing at $29.91. Intraday shares traded counted 8.94 million, which was 25.91% higher than its 30-day average trading volume of 12.07M. MGM’s previous close was $29.35 while the outstanding shares total 493.52M.
Investors have identified the Resorts & Casinos company MGM Resorts International as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $14.66 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
MGM Resorts International (MGM) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 6186281000 million total, with 2766784000 million as their total liabilities.
MGM were able to record -1.43 billion as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 2.26 billion. In cash movements, the company had a total of -1.25 billion as operating cash flow.
Potential earnings growth for MGM Resorts International (MGM)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, MGM Resorts International recorded a total of 1.13 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -194.37% coming in sequential stages and their sales for the third quarter increasing by 74.26%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 729.52 million trying to sell their products during the last quarter, with the result yielding a gross income of 396.4 million. This allows shareholders to hold on to 493.52M with the revenue now reading -1.22 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (-1.10 cents a share).
Having a look at the company’s valuation, the company is expected to record 0.77 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on MGM sounds very interesting.
Is the stock of MGM attractive?
In related news, EVP GENERAL COUNSEL AND SECY, McManus John sold 10,000 shares of the company’s stock in a transaction that recorded on Sep 01. The sale was performed at an average price of 22.89, for a total value of 228,900. As the sale deal closes, the EVP GENERAL COUNSEL AND SECY, McManus John now sold 10,000 shares of the company’s stock, valued at 227,968. Also, EVP GENERAL COUNSEL AND SECY, McManus John sold 30,000 shares of the company’s stock in a deal that was recorded on Aug 21. The shares were price at an average price of 21.23 per share, with a total market value of 637,002. Following this completion of acquisition, the Director, TAYLOR DANIEL J now holds 1,637 shares of the company’s stock, valued at 35,629. In the last 6 months, insiders have changed their ownership in shares of company stock by 12.50%.