MGM Resorts International (NYSE:MGM) director Paul J. Salem has recently increased his stake in the company through the purchase of shares valued at nearly $4.99 million. The transaction was carried out on August 5, with the purchase price per share averaging $33.804.
Investors tracking insider trades might note that Salem acquired a total of 147,500 shares of MGM Resorts' common stock. The shares were bought in multiple transactions at prices that ranged from $33.465 to $34.00. Following this buy, Salem's total holdings in the company have risen to 1,702,500 shares.
Insider purchases are often scrutinized for signals about a company's future prospects as seen by those with an intimate understanding of the business. In the case of MGM Resorts, this substantial purchase by a director could be an indicator of confidence in the company's trajectory.
The details of the transaction, including the range of prices at which the stock was bought, are available upon request, as per the Securities and Exchange Commission's filing requirements. Salem has committed to providing full information regarding the number of shares bought at each price point within the specified range if requested by the issuer, any security holder of the issuer, or the SEC staff.
MGM Resorts International is a global entertainment company with a portfolio that includes hotels and casinos, conferences, and dining establishments, among other leisure offerings. The company's stock is publicly traded and is a component of various stock indices.
This latest insider transaction comes amidst a dynamic period for the hospitality and gaming industry, as companies continue to navigate post-pandemic recovery and consumer behavior shifts. Investors and market analysts often pay close attention to insider trades for insights into the company's internal perspective on market conditions and strategic initiatives.
In other recent news, BetMGM, a leading U.S. sports-betting service, is forecasting revenue growth for the second half of this year and continuing into 2025. This growth is attributed to the appeal of the National Football League (NFL) season to bettors. CEO Adam Greenblatt reports that BetMGM has exceeded its targets in customer acquisition and retention, which is expected to result in a year-over-year revenue increase.
In related developments, analyst firm BTIG initiated coverage on MGM Resorts International, BetMGM's parent company, with a Buy rating and a $52.00 price target. BTIG anticipates healthy capital returns for MGM, driven by potential dividends from China and possible regional property sales. The firm also highlights the underappreciated potential of MGM's digital operations overseas, predicting that this segment's revenue and EBITDA could significantly outperform consensus estimates.
On the earnings front, MGM Resorts reported a 13% increase in net revenues, reaching $4.4 billion in the first quarter of 2024. This growth was largely driven by the company's operations in Las Vegas and Macau, as well as advancements in its digital and international expansion strategies. These are the recent developments for BetMGM and MGM Resorts.
InvestingPro Insights
MGM Resorts International's recent insider trading activity has caught the attention of market observers, with director Paul J. Salem's purchase signaling potential confidence in the company's future. In line with this development, InvestingPro data and insights provide a deeper look into MGM's financial health and market performance.
InvestingPro data reveals that MGM Resorts International has a market capitalization of $10.79 billion, with a price-to-earnings (P/E) ratio of 13.3, which adjusts to 15.81 when considering the last twelve months as of Q2 2024. This suggests a valuation that may be appealing to investors looking for potentially undervalued stocks in the hospitality and gaming sector.
Moreover, MGM's revenue growth has been positive, with a 15.12% increase over the last twelve months as of Q2 2024. This growth is indicative of the company's recovery trajectory in the post-pandemic landscape and aligns with the broader industry's rebound. Additionally, the company's gross profit margin stands at a robust 46.45%, highlighting its ability to maintain profitability despite the challenges faced by the hospitality industry.
Two InvestingPro Tips that may be particularly relevant to investors considering MGM's stock include:
- Management's aggressive share buyback strategy, which can often be interpreted as a sign of underlying confidence in the company's value and prospects.
- The stock is currently trading near its 52-week low, which, combined with the insider purchase, might suggest a potential buying opportunity for value-seeking investors.
For those interested in a more comprehensive analysis, there are 12 additional InvestingPro Tips available for MGM, which can be accessed through the InvestingPro platform at https://www.investing.com/pro/MGM. These tips provide further insights into MGM's stock performance, financial metrics, and analysts' expectations, which could help investors make more informed decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.