Is Melco Resorts & Entertainment Limited (NASDAQ: MLCO) Back In The Buying Zone?

DE Stock
DE Stock

Capital Research & Management Co.. recently announced the acquisition of new stake in Melco Resorts & Entertainment Limited (NASDAQ:MLCO). The institutional investor has increased its shareholding in the Consumer Cyclical company by 5.56% to 36.43 million shares with purchase of 1.92 million shares. This fresh investment now brings its stake to 7.64% valued currently at $599.66 million. In addition, Hardman Johnston Global Advisors.. raised its holdings by 3.76 million to 14.06 million shares.

With over 2.96 million Melco Resorts & Entertainment Limited (MLCO) shares trading Tuesday and a closing price of $18.78 on the day, the dollar volume was approximately $55.57 million. The shares have shown a negative weekly performance of -3.84% and its price on 09/01/20 lost nearly -3.79%. Currently, there are 476.92M common shares owned by the public and among those 455.32M 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: 17 analysts who have offered their price forecasts for MLCO have a consensus price objective of $22.09. The analysts have set the share’s price value over the next 12 months at a high of $24.60 and a low of $10.40 should the stock experience a downside. Incidentally, analysts’ outlook for the Melco Resorts & Entertainment Limited stock is 2.10 for the next 12 months. The average price target is 14.87% above its last price level and an upside to the estimated low will see the stock lose -80.58% over that period. But an upside of 23.66% will see the stock hit the forecast high price target while mean target price for the stock is $23.00.

The top 3 mutual fund holders in Melco Resorts & Entertainment Limited are American Funds EuroPacific Growth, American Funds New Perspective Fu, and American Funds New World Fund. American Funds EuroPacific Growth owns 32.63 million shares of the company’s stock, all valued at over $537.02 million. American Funds New World Fund bought 1.61 million shares to bring its total holdings to over 5.38 million shares at a value of $88.59 million. American Funds New World Fund now owns shares totaling to 1.13% of the shares outstanding.

Shares of Melco Resorts & Entertainment Limited (NASDAQ: MLCO) opened at $19.40, down -$0.12 from a prior closing price of $19.52. However, the script later closed the day at $18.78, down -3.79%. The company’s stock has a 5-day price change of -3.84% and 6.58% over the past three months. MLCO shares are trading -22.30% year to date (YTD), with the 12-month market performance down to -6.38% lower. It has a 12-month low price of $10.81 and touched a high of $25.22 over the same period. Currently, 2.96 million shares have been traded, compared to an average intraday trading volume of 3.13 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 -1.38%, 8.19%, and 3.27% respectively.

Institutional ownership of Melco Resorts & Entertainment Limited (NASDAQ: MLCO) shares accounts for 39.90% of the company’s 476.92M shares outstanding. Mutual fund holders own 18.28%, while other institutional holders and individual stakeholders account for 21.41% and — respectively.

It has a market capitalization of $8.57B and a beta (3y monthly) value of 1.99. The earnings-per-share (ttm) stands at -$1.22. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.02% over the week and 4.45% over the month.

Analysts forecast that Melco Resorts & Entertainment Limited (MLCO) will achieve an EPS of -$0.63 for the current quarter, -$0.18 for the next quarter and $0.48 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.87 while analysts give the company a high EPS estimate of -$0.24. Comparatively, EPS for the current quarter was $0.17 a year ago. Earnings per share for the fiscal year are expected to increase by 15.20%, and 117.60% over the next financial year. EPS should grow at an annualized rate of 24.00% over the next five years, compared to -6.70% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 17 brokerage firm advisors rate Melco Resorts & Entertainment Limited (MLCO) as a “Moderate Buy” at a consensus score of 2.10. Specifically, 12 Wall Street analysts polled rate the stock as a buy, while 1 of the 17 advise that investors “hold,” and 2 rated it as a “Sell.”

Looking at the support for the MLCO, a number of firms have released research notes about the stock. Daiwa Securities stated their Buy rating for the stock in a research note on July 30, 2019, with the firm’s price target at. CLSA coverage for the Melco Resorts & Entertainment Limited (MLCO) stock in a research note released on July 24, 2019 offered a Buy rating with a price target of. Wolfe Research was of a view on May 08, 2019 that the stock is Peer Perform, while Macquarie gave the stock Outperform rating on April 08, 2019, issuing a price target of. CLSA on their part issued Outperform rating on February 19, 2019.


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