No fewer than seven analysts have lifted their price targets on MGM
MGM Resorts International (NYSE:MGM) bested revenue expectations for the fourth quarter, despite worse-than-anticipated losses. The casino giant scrapped gambling firm Entain's buyout plans, too. No fewer than seven analysts have lifted their price targets after the results, including Jefferies to $59, citing hopes of Macau recovery and an accelerating Las Vegas market.
Options traders are also chiming in, with 20,000 calls and 6,740 puts exchanged so far today, which is 13 times the volume that's usually seen at this point. The most popular contract is now the June 35 put, though the March 44 call is not trailing too far behind.
Today's options activity marks a shift in sentiment. Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 10-day put/call volume ratio of 1.86 stands higher than 86% of readings from the past year, indicating puts have been picked up at a quicker-than-usual clip in the last two weeks.
Last seen up 8.7% at $45.07, the security is today trading at is highest level in almost one year. Support at their 20-day moving average has been guiding the shares higher since a bounce off the $32 region in December. So far in 2023, MGM has already added 34.9%.