MGM
MGM Resorts International (NYSE: MGM) is drawing attention after People Inc.
Article Summary
BUY- MGM Resorts International (NYSE: MGM) is drawing attention after People Inc. (IAC) offered $48.30 per share in cash to acquire remaining shares, with Stifel analysts arguing the offer undervalues the casino operator.
- The stock is trading above the bid, suggesting investors expect a higher offer, while analysts believe MGM's board may reject the offer and push for a higher price.
- MGM Resorts International posted a 0.7% decline overnight after rallying to a year-high of $51.56 in the regular session, with MGM posting the strongest gain among S&P 500 stocks to begin June.
- Truist analyst Barry Jonas argues full ownership of MGM could simplify People Inc.'s investment story and address investor questions about MGM Resorts International's indirect exposure to the company, though the firm cautioned that a private company may perform better without the pressure of delivering short-term results.
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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 ? | 9.9% | 20% | 10.0 ptsNear/At Target (9.9%) - Target: $45.94 vs Current: $51.00 |
| Gross Margin % ? | 38.3% | 15% | 60.0 ptsSolid (38.3%) - Decent margins |
| Drawdown from 52-Wk High ? | -1.1% | 15% | 20.0 ptsBarely a Dip (-1.1%) - 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.