Investors following the movements of MGM Resorts International (NYSE:MGM) insiders might have noticed a recent transaction by a company director. On May 20, 2024, Mary Chris Jammet, a member of the board, sold 4,344 shares of MGM common stock at an average price of $41.1101 per share, totaling approximately $178,582.
This sale has adjusted Jammet's holdings in the company to 5,250 shares of common stock, as reported in the latest filing with the Securities and Exchange Commission. It's worth noting that such transactions are closely watched by investors as they can provide insights into an insider's perspective on the company's current valuation and future prospects.
MGM Resorts International, known for its significant presence in the hospitality and entertainment industry, particularly in Las Vegas, has not provided any specific reasons for this transaction through footnotes in the filing. The sale was executed directly, indicating that Jammet personally owned the shares sold.
As is standard practice, the SEC filing was signed by an attorney-in-fact, Jessica Cunningham, on behalf of Jammet, confirming the accuracy and completion of the report on May 21, 2024.
Investors and analysts often scrutinize insider trades, such as this one by Jammet, to gain additional context to the stock's performance and the company's internal dynamics. However, it is essential to consider a broader set of information and not base investment decisions solely on insider transactions.
InvestingPro Insights
Amidst the recent insider trading activity at MGM Resorts International, investors may find additional context through real-time data and insights provided by InvestingPro. The company's market capitalization stands at a robust $12.8 billion, with a Price/Earnings (P/E) ratio of 15.64, indicating the level at which the market values every dollar of MGM's earnings. Notably, the adjusted P/E ratio for the last twelve months as of Q1 2024 is higher at 19.78, suggesting investors are willing to pay more per share in the company's future earnings potential.
InvestingPro data also reveals a healthy revenue growth of 17.91% for the same period, demonstrating MGM's ability to expand its income streams. This is complemented by a solid gross profit margin of 46.65%, which indicates the company's efficiency in controlling the costs associated with its revenue.
However, it's crucial to understand the company's stock price movements, which have been quite volatile, as per one of the InvestingPro Tips. This volatility can be a critical factor for investors to consider, especially when analyzing the timing of insider transactions. Furthermore, another InvestingPro Tip highlights that MGM's management has been aggressively buying back shares, which, coupled with a high shareholder yield, could signal confidence in the company's valuation and prospects.
For those seeking a more comprehensive analysis, InvestingPro offers additional insights. There are currently 9 analysts who have revised their earnings expectations upwards for the upcoming period, a hint that the company's financial health may be trending positively. However, it's important to note that MGM does not pay a dividend to shareholders, which may influence the investment strategies of income-focused investors.
Investors intrigued by these insights can uncover even more with a subscription to InvestingPro. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are a total of 9 InvestingPro Tips available on https://www.investing.com/pro/MGM, offering a deeper dive into MGM Resorts International's performance and potential.
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