MGM Resorts International (MGM) Leading In Pre-Market Activity

Trade-Ideas LLC identified MGM Resorts International ( MGM) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified MGM Resorts International as such a stock due to the following factors:

  • MGM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $237.3 million.
  • MGM traded 16,550 shares today in the pre-market hours as of 8:51 AM.
  • MGM is up 2.4% today from yesterday's close.

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More details on MGM:

MGM Resorts International, through its subsidiaries, owns and/or operates casino resorts. It operates through two segments, Wholly Owned Domestic Resorts and MGM China. The company's casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. Currently there are 13 analysts that rate MGM Resorts International a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for MGM Resorts International has been 6.8 million shares per day over the past 30 days. MGM Resorts International has a market cap of $11.3 billion and is part of the services sector and leisure industry. The stock has a beta of 1.51 and a short float of 5% with 1.11 days to cover. Shares are down 19% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates MGM Resorts International as a hold. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

Highlights from the ratings report include:
  • 39.80% is the gross profit margin for MGM RESORTS INTERNATIONAL which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -35.65% is in-line with the industry average.
  • MGM, with its decline in revenue, underperformed when compared the industry average of 12.9%. Since the same quarter one year prior, revenues slightly dropped by 8.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • MGM RESORTS INTERNATIONAL has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, MGM RESORTS INTERNATIONAL reported poor results of -$0.76 versus -$0.32 in the prior year. This year, the market expects an improvement in earnings ($0.64 versus -$0.76).
  • The debt-to-equity ratio is very high at 2.48 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, MGM maintains a poor quick ratio of 0.97, which illustrates the inability to avoid short-term cash problems.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, MGM RESORTS INTERNATIONAL's return on equity significantly trails that of both the industry average and the S&P 500.

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