MGM
MGM Resorts International (NYSE: MGM) rose sharply after Barry Diller's People Inc.
Article Summary
BUY- MGM Resorts International (NYSE: MGM) rose sharply after Barry Diller's People Inc. proposed buying 73.9% of MGM Resorts International it does not already own for $48.30 per share in cash, valuing the casino operator at $18.8 billion including debt.
- The offer lands at a 10.6% premium to Friday's closing price and more than 30% above MGM's volume-weighted average price over the past 90 days.
- Investors moved fast on the news, sending MGM shares up 13% Monday morning in New York to $49.18, pushing the shares to roughly 35% gain this year compared with 11% rise in the S&P 500 Index.
- People expects to fund the transaction through cash, additional debt and equity commitments, with People owning just over 50.1% of equity and other investors possibly including existing MGM shareholders holding minority stakes.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 3.4% | 25% | 20.0 ptsMinimal (3.4%) - Very weak |
| EPS Growth Next 5Y ? | -6.1% | 25% | 0.0 ptsNegative (-6.1%) - Declining expectations |
| Target Price Upside ? | 11.3% above | 20% | 0.0 ptsAbove Target (11.3% above) - Target: $45.53 vs Current: $51.33 |
| Gross Margin % ? | 38.3% | 15% | 60.0 ptsSolid (38.3%) - Decent margins |
| Drawdown from 52-Wk High ? | 15.9% | 15% | 20.0 ptsBarely a Dip (15.9%) - Near recent highs |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About MGM
- MGM Resorts International, through its subsidiaries, operates as a gaming and entertainment company in the United States, China, and internationally.
- It operates through four segments: Las Vegas Strip Resorts, Regional Operations, MGM China, and MGM Digital.
- The company operates casino resorts that offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities, as well as online/digital games through its online platforms.
- Its casino operations include slots and table games, as well as live dealer, online sports betting, and iGaming through BetMGM.
- The company's customers include premium gaming customers; leisure and wholesale travel customers; business travelers; and group customers, including conventions, trade associations, and small meetings.
- The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010.
- MGM Resorts International was incorporated in 1986 and is based in Las Vegas, Nevada.