NEW YORK (TheStreet) -- Shares of MGM Resorts International (MGM) recovered 5.14% to $18.93 in morning trading Thursday following Wednesday's sharp decline after investors bought the stock following the drop.
MGM plunged Wednesday as the Chinese government cracked down on illegal activities in the Macau gambling district. The government began focusing efforts on illicit money funneled through Macau, the only district in the world's most populous nation in which casinos are legal, according to Bloomberg.
Macau slowed the flow of money to the world's largest gambling hub by limiting the use of UnionPay debit cards at casinos, along with handheld card swipers in the resorts due to worries about illegal monies being taken out of the mainland into Macau.
Separately, TheStreet Ratings team rates MGM RESORTS INTERNATIONAL as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate MGM RESORTS INTERNATIONAL (MGM) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and weak operating cash flow."