Melco Resorts & Entertainment Limited (MLCO) Receives Average Recommendation of “Buy” from Brokerages

Melco Resorts & Entertainment Limited (NASDAQ:MLCO) has earned a consensus recommendation of “Buy” from the fourteen ratings firms that are presently covering the company, Marketbeat Ratings reports. One analyst has rated the stock with a sell recommendation, three have issued a hold recommendation and nine have issued a buy recommendation on the company. The average 12-month target price among analysts that have issued a report on the stock in the last year is $31.35.

A number of equities analysts have commented on the stock. ValuEngine downgraded shares of Melco Resorts & Entertainment from a “hold” rating to a “sell” rating in a research note on Friday, September 7th. BidaskClub downgraded shares of Melco Resorts & Entertainment from a “sell” rating to a “strong sell” rating in a research note on Saturday, August 11th. Sanford C. Bernstein dropped their target price on shares of Melco Resorts & Entertainment from $34.50 to $27.00 and set an “outperform” rating on the stock in a research note on Monday, September 17th. They noted that the move was a valuation call. UBS Group downgraded shares of Melco Resorts & Entertainment from a “buy” rating to a “neutral” rating in a research note on Wednesday, September 12th. Finally, TheStreet downgraded shares of Melco Resorts & Entertainment from a “b-” rating to a “c+” rating in a research note on Tuesday, October 30th.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Capital Research Global Investors boosted its stake in shares of Melco Resorts & Entertainment by 89.2% during the third quarter. Capital Research Global Investors now owns 33,785,801 shares of the company’s stock valued at $714,570,000 after purchasing an additional 15,930,285 shares in the last quarter. BlackRock Inc. boosted its stake in shares of Melco Resorts & Entertainment by 9.1% during the second quarter. BlackRock Inc. now owns 24,200,196 shares of the company’s stock valued at $677,605,000 after purchasing an additional 2,013,914 shares in the last quarter. Capital World Investors boosted its stake in shares of Melco Resorts & Entertainment by 7.7% during the third quarter. Capital World Investors now owns 15,327,427 shares of the company’s stock valued at $324,175,000 after purchasing an additional 1,094,334 shares in the last quarter. Hardman Johnston Global Advisors LLC boosted its stake in shares of Melco Resorts & Entertainment by 11.4% during the third quarter. Hardman Johnston Global Advisors LLC now owns 9,892,435 shares of the company’s stock valued at $209,225,000 after purchasing an additional 1,011,558 shares in the last quarter. Finally, Flowering Tree Investment Management Pte. Ltd. boosted its stake in shares of Melco Resorts & Entertainment by 44.8% during the third quarter. Flowering Tree Investment Management Pte. Ltd. now owns 3,245,803 shares of the company’s stock valued at $68,649,000 after purchasing an additional 1,003,934 shares in the last quarter. Hedge funds and other institutional investors own 36.24% of the company’s stock.

MLCO stock traded down $0.92 during mid-day trading on Monday, reaching $17.04. The company had a trading volume of 2,265,506 shares, compared to its average volume of 3,757,964. The company has a debt-to-equity ratio of 1.36, a current ratio of 0.97 and a quick ratio of 0.95. The company has a market capitalization of $8.88 billion, a P/E ratio of 18.52, a P/E/G ratio of 1.29 and a beta of 1.64. Melco Resorts & Entertainment has a 12 month low of $15.33 and a 12 month high of $32.95.

Melco Resorts & Entertainment (NASDAQ:MLCO) last issued its earnings results on Thursday, November 8th. The company reported $0.04 EPS for the quarter, missing the Zacks’ consensus estimate of $0.22 by ($0.18). The company had revenue of $1.22 billion during the quarter, compared to the consensus estimate of $1.34 billion. Melco Resorts & Entertainment had a return on equity of 11.89% and a net margin of 5.98%. Melco Resorts & Entertainment’s revenue was down 11.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.24 earnings per share. On average, research analysts expect that Melco Resorts & Entertainment will post 1.07 EPS for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, November 29th. Stockholders of record on Monday, November 19th were paid a dividend of $0.1451 per share. The ex-dividend date of this dividend was Friday, November 16th. This is an increase from Melco Resorts & Entertainment’s previous quarterly dividend of $0.15. This represents a $0.58 dividend on an annualized basis and a dividend yield of 3.40%. Melco Resorts & Entertainment’s dividend payout ratio (DPR) is currently 61.96%.

Melco Resorts & Entertainment Company Profile

Melco Resorts & Entertainment Limited, through its subsidiaries, develops, owns, and operates casino gaming and entertainment casino resort facilities in Asia. It owns and operates City of Dreams, an integrated casino resort that has 500 gaming tables and 800 gaming machines; approximately 1,400 hotel rooms and suites; a wet stage performance theater with approximately 2,000 seats; approximately 30 restaurants and bars, and 150 retail outlets; and recreation and leisure facilities, including health and fitness clubs, swimming pools, spa and salons, and banquet and meeting facilities.

Further Reading: Market Capitalization in the Stock Market

Analyst Recommendations for Melco Resorts & Entertainment (NASDAQ:MLCO)

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