Melco Resorts & Entertainment (NASDAQ:MLCO) Shares Down 5.7% – Should You Sell?

Melco Resorts & Entertainment Limited (NASDAQ:MLCO)’s share price fell 5.7% on Thursday . The company traded as low as $7.06 and last traded at $7.07. 805,758 shares traded hands during mid-day trading, a decline of 76% from the average session volume of 3,379,247 shares. The stock had previously closed at $7.50.

Wall Street Analyst Weigh In

MLCO has been the subject of several recent analyst reports. Bank of America dropped their target price on Melco Resorts & Entertainment from $8.50 to $7.50 and set a “buy” rating for the company in a research report on Monday, August 12th. JPMorgan Chase & Co. cut Melco Resorts & Entertainment from an “overweight” rating to a “neutral” rating and dropped their price objective for the company from $10.00 to $7.00 in a report on Thursday, July 18th. Two analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. According to MarketBeat, Melco Resorts & Entertainment has a consensus rating of “Moderate Buy” and an average target price of $9.82.

Melco Resorts & Entertainment Price Performance

The stock has a market cap of $3.13 billion, a PE ratio of -16.81, a price-to-earnings-growth ratio of 1.31 and a beta of 1.06. The business has a fifty day moving average of $6.22 and a 200-day moving average of $6.83.

Melco Resorts & Entertainment (NASDAQ:MLCO) last issued its earnings results on Tuesday, August 13th. The company reported $0.05 earnings per share for the quarter, missing the consensus estimate of $0.10 by ($0.05). The firm had revenue of $1.16 billion during the quarter, compared to analysts’ expectations of $1.16 billion. Melco Resorts & Entertainment had a negative return on equity of 11.59% and a negative net margin of 3.11%. Melco Resorts & Entertainment’s quarterly revenue was up 22.3% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.02) earnings per share. As a group, equities research analysts predict that Melco Resorts & Entertainment Limited will post 0.2 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. Capital Research Global Investors increased its holdings in Melco Resorts & Entertainment by 22.6% during the first quarter. Capital Research Global Investors now owns 21,460,223 shares of the company’s stock valued at $154,728,000 after buying an additional 3,958,998 shares during the period. Invenomic Capital Management LP bought a new stake in Melco Resorts & Entertainment during the 1st quarter valued at $15,963,000. Coronation Fund Managers Ltd. increased its holdings in shares of Melco Resorts & Entertainment by 16.2% in the 2nd quarter. Coronation Fund Managers Ltd. now owns 15,500,865 shares of the company’s stock valued at $115,636,000 after acquiring an additional 2,166,524 shares during the period. Eminence Capital LP raised its position in shares of Melco Resorts & Entertainment by 14.0% in the 2nd quarter. Eminence Capital LP now owns 17,502,002 shares of the company’s stock worth $130,565,000 after acquiring an additional 2,154,509 shares in the last quarter. Finally, ARGA Investment Management LP lifted its stake in shares of Melco Resorts & Entertainment by 6.1% during the 1st quarter. ARGA Investment Management LP now owns 29,336,228 shares of the company’s stock worth $211,514,000 after purchasing an additional 1,695,442 shares during the last quarter. Hedge funds and other institutional investors own 39.62% of the company’s stock.

About Melco Resorts & Entertainment

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.