Insider Transaction: DANIEL TAYLOR Sells $183K Worth Of MGM Resorts International Shares

DANIEL TAYLOR, Director at MGM Resorts International MGM, reported an insider sell on May 14, according to a new SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, TAYLOR sold 5,261 shares of MGM Resorts International. The total transaction value is $183,767.

Monitoring the market, MGM Resorts International's shares down by 2.58% at $34.05 during Thursday's morning.

Discovering MGM Resorts International: A Closer Look

MGM Resorts is the largest resort operator on the Las Vegas Strip with 37,000 guest rooms and suites, representing about one fourth of all units in the market. The company's Vegas properties include MGM Grand, Mandalay Bay, Park MGM, Luxor, New York-New York, and Bellagio. The Strip contributed approximately 59% of total EBITDAR in 2024. MGM also owns US regional assets, which represented a low 20s share of 2024 EBITDAR (MGM's Macao EBITDAR was 21% of the total in 2024). MGM's US sports and i-gaming operations are currently a high-single-digit percentage of its total revenue. The company also operates the 56%-owned MGM China casinos with a new property that opened on the Cotai Strip in early 2018. We estimate MGM will open a resort in Japan in 2030.

A Deep Dive into MGM Resorts International's Financials

Revenue Challenges: MGM Resorts International's revenue growth over 3 months faced difficulties. As of 31 March, 2025, the company experienced a decline of approximately -2.43%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Analyzing Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 45.76%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): MGM Resorts International's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 0.52.

Debt Management: MGM Resorts International's debt-to-equity ratio surpasses industry norms, standing at 11.03. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: The P/E ratio of 15.6 is lower than the industry average, implying a discounted valuation for MGM Resorts International's stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.62 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 16.46, MGM Resorts International demonstrates exemplary market valuation, surpassing industry averages.

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

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The Relevance of Insider Transactions

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Understanding Crucial Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of MGM Resorts International's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.