Now Is A Suitable Moment For A Long-Term Purchase Of MGM Growth Properties LLC (NYSE: MGP)

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Barrow, Hanley, Mewhinney & Strau. recently announced the acquisition of new stake in MGM Growth Properties LLC (NYSE:MGP). The institutional investor has increased its shareholding in the Real Estate company by 29.53% to 16.67 million shares with purchase of 3.8 million shares. This fresh investment now brings its stake to 12.69% valued currently at $453.7 million. In addition, Capital Research & Management Co. raised its holdings by 1361.0 to 11.1 million shares. And Janus Capital Management LLC has lifted its position by 29.07% or 1.64 million shares – to 7.27 million shares.

With over 1.13 million MGM Growth Properties LLC (MGP) shares trading Tuesday and a closing price of $26.88 on the day, the dollar volume was approximately $30.49 million. The shares have shown a positive weekly performance of 4.35% and its price on 07/21/20 gained nearly 0.83%. Currently, there are 131.42M common shares owned by the public and among those 130.93M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 15 analysts who have offered their price forecasts for MGP have a consensus price objective of $31.66. The analysts have set the share’s price value over the next 12 months at a high of $36.00 and a low of $27.00 should the stock experience a downside. Incidentally, analysts’ outlook for the MGM Growth Properties LLC stock is 1.80 for the next 12 months. The average price target is 15.42% above its last price level and an upside to the estimated low will see the stock gain 0.44% over that period. But an upside of 25.33% will see the stock hit the forecast high price target while mean target price for the stock is $32.00.

Insiders at the company have transacted a total of 43 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 17 of these insider trades were purchases, accounting for 144,639 shares. Insider sales of the common stock occurred on 26 occasions, with total insider shares sold totaling 289,262 shares.

The top 3 mutual fund holders in MGM Growth Properties LLC are Vanguard Real Estate Index Fund, American Funds Income Fund of Ame, and American Century Mid Cap Value Fu. Vanguard Real Estate Index Fund owns 5.9 million shares of the company’s stock, all valued at over $160.45 million. The company bought an additional 55236.0 shares recently to bring their total holdings to about 4.49% of the shares outstanding. American Century Mid Cap Value Fu sold 89170.0 shares to bring its total holdings to over 2.96 million shares at a value of $80.44 million. American Century Mid Cap Value Fu now owns shares totaling to 2.25% of the shares outstanding.

Shares of MGM Growth Properties LLC (NYSE: MGP) opened at $26.84, up $0.18 from a prior closing price of $26.66. However, the script later closed the day at $26.88, up 0.83%. The company’s stock has a 5-day price change of 4.35% and 15.36% over the past three months. MGP shares are trading -13.21% year to date (YTD), with the 12-month market performance down to -7.09% lower. It has a 12-month low price of $11.43 and touched a high of $34.37 over the same period. Currently, 1.13 million shares have been traded, compared to an average intraday trading volume of 1.51 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -0.09%, -0.50%, and -4.63% respectively.

Institutional ownership of MGM Growth Properties LLC (NYSE: MGP) shares accounts for 95.16% of the company’s 131.42M shares outstanding. Mutual fund holders own 43.32%, while other institutional holders and individual stakeholders account for 53.09% and 0.53% respectively.

It has a market capitalization of $12.34B and a beta (3y monthly) value of 0.75. The stock’s trailing 12-month PE ratio is 82.20, while the earnings-per-share (ttm) stands at $0.33. The company has a PEG of 4.02 and the debt-to-equity ratio at 1.41. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.29% over the week and 2.97% over the month.

Analysts forecast that MGM Growth Properties LLC (MGP) will achieve an EPS of $0.32 for the current quarter, $0.33 for the next quarter and $1.31 for 2021. The lowest estimate earnings-per-share for the quarter is $0.28 while analysts give the company a high EPS estimate of $0.38. Comparatively, EPS for the current quarter was $0.24 a year ago. Earnings per share for the fiscal year are expected to increase by 10.70%, and 117.80% over the next financial year. EPS should grow at an annualized rate of 20.43% over the next five years, compared to 16.99% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 15 brokerage firm advisors rate MGM Growth Properties LLC (MGP) as a “Strong Buy” at a consensus score of 1.80. Specifically, 12 Wall Street analysts polled rate the stock as a buy, while 2 of the 15 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the MGP, a number of firms have released research notes about the stock. Wolfe Research stated their Outperform rating for the stock in a research note on June 24, 2020, with the firm’s price target at. BofA/Merrill coverage for the MGM Growth Properties LLC (MGP) stock in a research note released on May 21, 2020 offered a Buy rating with a price target of $29. Robert W. Baird was of a view on May 19, 2020 that the stock is Outperform, while Citigroup gave the stock Buy rating on April 07, 2020, issuing a price target of $33- $26. Scotiabank on their part issued Sector Perform rating on March 16, 2020.

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