Geode Capital Management Cuts Stake in MGM Resorts (NYSE:MGM)

3 min read | December 16, 2024 07:04 AM PST | By Team Kalkine Media

Geode Capital Management Cuts Stake in MGM Resorts (NYSE:MGM) — Image source: Shutterstock

Geode Capital Management Reduces Stake in MGM Resorts International

Geode Capital Management LLC reduced its stake in MGM Resorts International (NYSE:MGM) by 6.3% in the third quarter. The institutional investor now holds 5,391,300 shares of the company, having sold 363,793 shares during this period. This reduction brings Geode Capital's ownership to approximately 1.81% of MGM's total shares, valued at around $210 million at the close of the most recent reporting period.

MGM Resorts Reports Quarterly Earnings

MGM Resorts International released its earnings for the quarter ending October 30th. The company reported $0.54 earnings per share (EPS), missing analysts’ expectations of $0.58 by $0.04. Although the company saw a slight dip in EPS compared to the previous year’s $0.64, its revenue increased by 5.3% year-over-year. The company generated $4.18 billion in revenue, falling slightly short of the forecasted $4.21 billion.

MGM Resorts’ Diversified Operations

MGM Resorts International operates through three key segments: Las Vegas Strip Resorts, Regional Operations, and MGM China. The company owns and manages numerous casino and hotel resorts across the United States and internationally. These resorts offer a variety of services, including gaming, accommodations, dining, and entertainment, making MGM a major player in the global hospitality and entertainment sectors.

Performance Analysis of MGM Resorts

MGM Resorts International has shown resilience with its diversified business model, with both its Las Vegas Strip and regional operations driving revenue growth. Despite missing EPS expectations, the company's revenue growth signals strength, particularly in its core resort and entertainment offerings. The Las Vegas Strip Resorts segment remains one of the company’s most significant contributors, benefiting from high foot traffic and luxury amenities.

Institutional Ownership Trends

As a major institutional player in the hospitality and gaming industry, MGM Resorts continues to attract significant interest from investors. While Geode Capital Management reduced its stake in the company, the overall institutional ownership of MGM remains high. Other institutional investors will likely monitor the company’s performance as it adjusts to evolving market dynamics and consumer demand in the hospitality industry.

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