BTIG analyst Clark Lampen has reiterated their neutral stance on MGM stock, giving a Hold rating yesterday.
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Clark Lampen has given his Hold rating due to a combination of factors impacting MGM Resorts. The company is experiencing a mixed performance across its various segments, with positive developments in Macau and regional markets being offset by weaker trends in Las Vegas. The Las Vegas segment, despite a strong April, has seen sub-seasonal trends in May and June, leading to a reduction in casino and room revenue forecasts.
Furthermore, while regional gaming revenue has exceeded expectations, the overall financial outlook for MGM is tempered by anticipated pressures on free cash flow and capital returns due to upcoming projects and growth investments. This, combined with a potentially volatile Las Vegas market, suggests that MGM’s stock may remain relatively stable in the near term. As a result, Lampen maintains a Neutral stance, reflecting a cautious approach given the current market dynamics.
Based on the recent corporate insider activity of 36 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MGM in relation to earlier this year.