Insiders are making major positive moves at MGM Resorts International (MGM). Based in the U.S., MGM Resorts International is a hospitality and entertainment holding company that owns and operates casino resorts. The firm’s casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities.
Yesterday, Director Paul Salem was immensely positive on the stock with his informative buy. He acquired 34,500 shares of MGM in a transaction wherein he spent $997,390 at $28.91 price levels.
With his latest Buys and current holding of 1.55 million shares worth $49.42 million, he now owns 0.36% of the total shares outstanding.
According to the Tipranks Insider Trading Tool, insiders at MGM Resorts International are clearly optimistic about the stock’s near-term prospects and have bought stock for a whopping $1.1 million over the last three months.
Notably, the Paul Salem has been a major buyer of MGM shares, with a success rate of 60% and an average profit of 124.4%.
Recent Developments
On June 9, MGM Resorts inked a deal to sell the operations of Gold Strike Tunica to Cherokee Nation Entertainment Gaming Holdings, LLC, a subsidiary of Cherokee Nation Businesses, in an all-cash deal worth $450 million.
The deal price implies a strong 11x multiple on average adjusted property earnings before interest, taxes, depreciation, and amortization (EBITDA) from 2019 to 2021.
Wall Street’s Take
Last week, Deutsche Bank analyst Carlo Santarelli maintained a Buy rating on MGM Resorts with a price target of $48 (64.55% upside potential).
Overall, the Street has a Moderate Buy consensus rating on the stock based on five Buys and seven Holds. The average MGM Resorts price target of $50.25 implies an upside potential of 75.03%.
Conclusion
MGM has lost over a third of its market capitalization so far this year.
However, the company’s upbeat Q1 results in May and positive commentary from CEO Bill Hornbuckle indicate that perhaps a strong recovery is underway.
Meanwhile, the recent insider buys signal optimism among top management in the future growth prospects of the company.
