MGM Should I Buy
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MGM Resorts International is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has shown strong financial growth in Q4 2025, the lack of significant positive catalysts, mixed analyst ratings, and technical indicators that do not suggest a strong upward trend make it a hold for now. The pre-market price is slightly down, and options data indicates a neutral-to-bearish sentiment. For a long-term investor, it may be better to wait for a clearer entry point or more favorable signals.
The technical indicators are mixed. The MACD is positive and expanding, suggesting bullish momentum. The RSI is neutral at 60.12, not indicating overbought or oversold conditions. Moving averages are bullish (SMA_5 > SMA_20 > SMA_200), but the stock is trading close to its resistance level at R1: 37.59. Pre-market price is slightly down (-0.16%), which does not show strong momentum.
Hedge funds are significantly increasing their positions in MGM, with a 161.90% increase in buying over the last quarter. The company also reported strong financial growth in Q4 2025, with revenue up 5.95% YoY, net income up 93.66% YoY, and EPS up 107.69% YoY.
Analyst ratings are mixed, with some downgrades citing weaker fundamentals in the Las Vegas segment and challenges in Macau. The stock has an 80% chance to decline by -2.02% in the next week and -10.56% in the next month based on historical patterns. Gross margin has dropped by -3.28% YoY, and there are no recent congress trading data or significant news catalysts.
In Q4 2025, MGM Resorts reported strong financial performance with revenue increasing by 5.95% YoY to $4.61 billion, net income rising by 93.66% YoY to $299.23 million, and EPS growing by 107.69% YoY to 1.08. However, gross margin declined by -3.28% YoY to 37.98%.
Analyst ratings are mixed. Stifel has a Buy rating with a price target of $50, while Morgan Stanley maintains an Underweight rating with a price target of $34. Citi and JPMorgan have Neutral ratings with price targets of $41. Texas Capital has a Buy rating with a $56 price target, citing potential growth in Las Vegas, Macau, and Japan. However, Barclays and Morgan Stanley have expressed concerns about weaker fundamentals in key segments.
