MGM Resorts International (NYSE:MGM) CEO and President William Hornbuckle has invested approximately $1.99 million in the company's stock, according to a recent filing with the Securities and Exchange Commission. The executive purchased 58,900 shares of common stock at a weighted average price of $33.7257.
The transaction, which took place on August 5, 2024, was part of a series of purchases made at prices ranging from $33.68 to $33.74. The filing indicates that Hornbuckle now directly owns 377,112 shares following the acquisition. Additionally, the CEO holds 172,781 shares indirectly through a trust.
Investors often look to insider buying as a sign of confidence in the company's future prospects. The purchase by MGM's CEO is notable for its size and could be interpreted as a strong endorsement of the hospitality giant's value and growth potential.
MGM Resorts International, based in Las Vegas, Nevada, is a global entertainment company with a portfolio of destination resort brands around the world. The company has been at the forefront of the hospitality and gaming industry, and this recent purchase by the CEO underscores a commitment to the company's continued success.
The SEC filing provides full transparency regarding the number of shares purchased at each price point within the specified range, a standard practice to ensure fair disclosure. Interested parties can request detailed information regarding the exact quantities of shares acquired at each price from the reporting person.
This latest move by a top executive at MGM Resorts International could draw attention from investors as they evaluate the company's stock performance and insider confidence.
In other recent news, BetMGM, a leading U.S. sports-betting service, anticipates a boost in revenue for the latter half of this year and into 2025, mainly due to the appeal of the National Football League (NFL) season to bettors. The firm's CEO, Adam Greenblatt, has reported surpassing targets in customer acquisition and retention, which is expected to result in increased year-over-year revenue. The NFL season, a significant event in the American sports calendar, is seen as a key driver for the betting industry, and BetMGM aims to capitalize on this interest.
In addition, MGM Resorts International has been the subject of favorable analyst coverage. BTIG initiated coverage on MGM Resorts with a Buy rating and a $52.00 price target, citing an attractive fundamental backdrop and the potential for upward revisions of estimates due to performance in Las Vegas and China. The firm also noted the underappreciated potential of MGM's digital operations overseas, predicting that this segment could outperform consensus estimates as the business expands.
Furthermore, MGM Resorts reported a 13% increase in net revenues, reaching $4.4 billion in the first quarter of 2024. The company experienced significant growth in its operations in Las Vegas and Macau, along with substantial progress in its digital and international expansion strategies. MGM Resorts also announced plans for future investments in BetMGM and substantial share buybacks. These are the recent developments that investors should take note of.
InvestingPro Insights
In light of MGM Resorts International CEO William Hornbuckle's recent stock purchase, a glance at the company's latest data and analyst insights from InvestingPro may offer investors additional context. MGM's aggressive share buyback strategy is a signal that management is confident in the company's intrinsic value. This is further supported by a high shareholder yield, indicating a commitment to returning value to investors.
InvestingPro data highlights a market capitalization of $10.79 billion, with a Price to Earnings (P/E) ratio at a reasonable 13.3, suggesting that the stock could be attractively valued relative to earnings. The company's revenue has seen a healthy growth of 15.12% over the last twelve months as of Q2 2024, which may reflect positively on the company's ability to expand and capture market share.
Additionally, while MGM does not currently pay a dividend, the liquid assets exceeding short-term obligations suggest a strong liquidity position, which is crucial for operational flexibility and may reassure investors of the company's financial health. The stock's recent performance has been volatile, with a significant drop over the last week and trading near its 52-week low, which could present a buying opportunity for those who share the CEO's confidence in the company's prospects.
For investors seeking more detailed insights, there are additional InvestingPro Tips available, including the latest analyst earnings revisions and technical analysis indicators. To explore these further, one can visit InvestingPro's dedicated page for MGM at https://www.investing.com/pro/MGM.
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