Today at 7:47 AM ET, MGM Resorts International (NYSE:MGM) stock rose 5.7% to $21.43 in the pre-market session. The stock rose 11.3% on Wednesday and ended the day at $20.26 with a market cap of $10 billion. The company’s share price rose. Investors expect good news from the company today.
Today, MGM Resorts is set to re-open its Las Vegas casinos. The company temporarily closed its casinos amid the COVID-19 pandemic. According to a Reuters report, “Democratic Nevada Governor Steve Sisolak said on Tuesday he felt confident in the state’s tentative plan to re-open its gambling and hotel businesses on that date, and said guidelines could be released by the Nevada Gaming Commission as early as Wednesday.”
MGM’s Q1 earnings results
In the first quarter, which ended in March, MGM reported an adjusted EPS of -$0.47 compared to $0.05 in the first quarter of 2019. The adjusted EPS missed analysts’ consensus estimate of -$0.35. MGM generated sales of $2.25 billion—a reduction of 29.1% from the first quarter of 2019. The company missed analysts’ consensus revenue estimate of $2.42 billion.
Wall Street analysts expect MGM to report an adjusted EPS of -$1.72 on revenues of $517.9 million in the second quarter. Analysts also expect the company’s sales to decline 49.3% YoY (year-over-year) in 2020 to $6.5 billion. The sales could rise by 59% YoY in 2021 to $10.4 billion. The adjusted EPS will decrease from $0.77 in 2019 to -$1.74 in 2020. Analysts also expect an adjusted EPS of -$0.92 in 2021.
Analysts’ recommendations for MGM stock
Among the 20 analysts following MGM stock, six recommend a “buy,” 13 recommend a “hold,” and one recommends a “sell.” Wall Street analysts’ mean target price on the stock is $18.04, which implies an 11% loss from the current level of $20.26. The consensus target price for the stock has decreased from $20.99 in May—a reduction of 14.1%.
MGM stock is trading 41.5% below its 52-week high of $34.64 and 243.4% above its 52-week low of $5.90. Based on the closing price on Wednesday, MGM stock was trading 27.3% above its 20-day moving average of $15.91. The stock is also trading 38.7% above its 50-day moving average of $14.61 and 1.3% below its 100-day moving average of $20.52. MGM’s 14-day relative strength index number is 69, which suggests that it’s overbought.
MGM stock has a middle Bollinger Band level of $15.91, while its lower Bollinger Band level is $12.13. On Wednesday, MGM stock closed near its upper Bollinger Band level of $19.70, which suggests that it’s overbought.
At 8:26 AM ET today, the S&P 500 futures fell 0.37%, while the Dow futures fell 0.19%. Read US Stock Markets: Will Nasdaq Hit All-Time Highs in June? to learn more.