MGM Should I Buy
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MGM Resorts International is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 to invest. The company has demonstrated strong financial performance, positive hedge fund sentiment, and strategic moves to enhance its financial flexibility. While analyst ratings are mixed, the stock's technical indicators and options data suggest a favorable entry point.
The technical indicators are bullish. The MACD is positive at 0.165, indicating upward momentum. The RSI is neutral at 62.992, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). Key support and resistance levels are Pivot: 38.168, R1: 39.967, S1: 36.368, R2: 41.078, S2: 35.257.
Hedge funds are actively buying, with a 161.90% increase in buying activity last quarter.
MGM sold Northfield Park for $546 million, generating $420 million in net cash proceeds and reducing annual rent by $53 million, enhancing financial flexibility.
Revenue and net income saw significant YoY growth in Q4 2025, with EPS increasing by 107.69%.
Mixed analyst ratings, with some firms lowering price targets and maintaining Neutral or Underweight ratings.
Concerns about weakening consumer sentiment and higher fuel prices impacting gaming trends.
In Q4 2025, MGM reported a 5.95% YoY increase in revenue to $4.61 billion, a 93.66% YoY increase in net income to $299.23 million, and a 107.69% YoY increase in EPS to 1.08. However, gross margin dropped by 3.28% YoY to 37.98.
Analyst ratings are mixed. JPMorgan raised its price target to $42 and considers MGM a top idea into earnings. Stifel maintains a Buy rating with a price target of $48. However, Wells Fargo and Morgan Stanley maintain Underweight ratings with lower price targets, citing concerns about digital gaming competition and mixed demand trends.
