Massive Insider Trade At MGM Resorts Intl

DANIEL TAYLOR, Board Member at MGM Resorts Intl MGM, disclosed an insider sell on May 21, according to a recent SEC filing.

What Happened: TAYLOR's decision to sell 4,344 shares of MGM Resorts Intl was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the sale is $178,191.

Tracking the Wednesday's morning session, MGM Resorts Intl shares are trading at $40.47, showing a down of 0.83%.

All You Need to Know About MGM Resorts Intl

MGM Resorts is the largest resort operator on the Las Vegas Strip with 35,000 guest rooms and suites, representing about one fourth of all units in the market. The company's Vegas properties include MGM Grand, Mandalay Bay, Park MGM, Luxor, New York-New York, and Bellagio. The Strip contributed approximately 62% of total EBITDAR in 2023. MGM also owns US regional assets, which represented low-20s of 2023 EBITDAR (MGM's Macao EBITDAR was 17% of the total in 2023). MGM's US sports and iGaming operations are currently a high-single-digit percentage of its total revenue. The company also operates the 56%-owned MGM China casinos with a new property that opened on the Cotai Strip in early 2018. Further, we estimate MGM will open a resort in Japan in 2030.

Unraveling the Financial Story of MGM Resorts Intl

Revenue Growth: MGM Resorts Intl displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 13.17%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Holistic Profitability Examination:

• Gross Margin: The company faces challenges with a low gross margin of 46.14%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): MGM Resorts Intl's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 0.68.

Debt Management: MGM Resorts Intl's debt-to-equity ratio surpasses industry norms, standing at 9.08. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Valuation Overview:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 15.58, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.84 is lower than the industry average, implying a discounted valuation for MGM Resorts Intl's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): MGM Resorts Intl's EV/EBITDA ratio of 17.15 exceeds industry averages, indicating a premium valuation in the market

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

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Uncovering the Importance of Insider Activity

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Unlocking the Meaning of Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of MGM Resorts Intl's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.