fbpx

How to Buy MGM Resorts International (MGM) Stock

Share to Linkedin Share to Twitter Share to Facebook Share to Print More
Benzinga Money is a reader-supported publication. We may earn a commission when you click on links in this article. Learn more.

Jump straight to Webull! Get real-time market data, analysis tools and $0 commissions.

Symbol Company % Change Price Invest
MGM MGM Resorts Intl
– 1.14%
$41.72 Buy stock

Typically what happens in Las Vegas stays in the desert city. Unfortunately, that wasn’t the case with the novel coronavirus, which rippled throughout the U.S. and devastated our economy. 

Some sectors suffered more than others, including entertainment and hospitality. Frankly, no one wanted to party amid this once-in-a-century pandemic.

MGM Resorts International (NYSE: MGM) is an icon of the entertainment landscape, and during the pandemic, Vegas and other high-traffic areas across the globe became near-instant ghost towns. 

Thanks to progress on the vaccination front, speculators are rethinking the narrative for MGM stock. Learn how you can ride the wave and buy MGM stock today.

How to Buy MGM Resorts International (MGM) Stock

In early 2020, MGM Resorts International stock represented a classic contrarian investment. This is when you direct your investment choices against the prevailing sentiment.

According to the Las Vegas Convention and Visitors Authority, the volume of tourists slipped to 106,900 people in April 2020, a staggering 97% loss year-over-year. However, forward-thinking investors gambled that the health threat was only temporary. 

Today bullish buyers believe that the vaccine rollout will continue to produce encouraging results, sparking further upside momentum for MGM stock.

Step 1: Pick a brokerage.

Before you can roll the dice on MGM Resorts International, you must first select a brokerage. Thanks to robust competition, you have no shortage of options. And because so many platforms are battling for your investment dollars, the brokerage industry has standardized many incentivizes such as commission-free trading.

The decision comes down to personal preference and your anticipated usage of the platform. For instance, if you don’t have the time to shadow your portfolio, you may want to choose a convenient mobile trading app. On the other hand, if you anticipate building your investing acumen over time, you should consider a more comprehensive solution.

Below is a list of best brokers to choose from.

Best For
Intermediate Traders and Investors
Overall Rating
Get started securely through Webull’s website
Best For
Intermediate Traders and Investors
N/A
1 Minute Review

Webull, founded in 2017, is a mobile app-based brokerage that features commission-free stock and exchange-traded fund (ETF) trading. It’s regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. Webull’s trading platform is designed for intermediate and experienced traders, although beginning traders can also benefit.

Webull is widely considered one of the best Robinhood alternatives.

Best For
  • Active traders
  • Intermediate traders
  • Advanced traders
Pros
  • Commission-free trading in over 5,000 different stocks and ETFs
  • No account maintenance fees or software platform fees
  • No charges to open and maintain an account
  • Leverage of 4:1 on margin trades made the same day and leverage of 2:1 on trades held overnight
  • Intuitive trading platform with technical and fundamental analysis tools
Cons
  • Does not support trading in mutual funds, bonds or OTC stocks
Best For
Beginners
Overall Rating
get started securely through Robinhood’s website
Best For
Beginners
N/A
1 Minute Review

Robinhood is the broker for traders who want a simple, easy-to-understand layout without all the bells and whistles other brokers offer. Though its trading options and account types are limited, even an absolute beginner can quickly master Robinhood’s intuitive and streamlined platform. On the other hand, more advanced traders might be frustrated by Robinhood’s lack of technical analysis tools, a feature that’s now nearly universal across other platforms.

Best For
  • Beginner traders
  • Mobile traders
Pros
  • Streamlined, easy-to-understand interface
  • Mobile app with full capabilities
  • Can buy and sell cryptocurrency
Cons
  • Almost no trading analysis tools available
  • Only taxable brokerage accounts available
  • No option to open a retirement account
  • No access to mutual funds, forex or futures trading
  • Limited customer service
Best For
Options Trading
Overall Rating
Get started securely through TD Ameritrade’s website
Best For
Options Trading
N/A
1 Minute Review

This publicly listed discount broker, which is in existence for over four decades, is service-intensive, offering intuitive and powerful investment tools. Especially, with equity investing, a flat fee is charged, with the firm claiming that it charges no trade minimum, no data fees, and no platform fees. Though it is pricier than many other discount brokers, what tilts the scales in its favor is its well-rounded service offerings and the quality and value it offers its clients.

Best For
  • Novice investors
  • Retirement savers
  • Day traders
Pros
  • World-class trading platforms
  • Detailed research reports and Education Center
  • Assets ranging from stocks and ETFs to derivatives like futures and options
Cons
  • Thinkorswim can be overwhelming to inexperienced traders
  • Derivatives trading more costly than some competitors
  • Expensive margin rates
Best For
Inexpensive Options Trading
Overall Rating
get started securely through Tradier’s website
Best For
Inexpensive Options Trading
N/A
1 Minute Review

Tradier is a high-tech broker made with the most active traders in mind. Tradier differentiates itself by using Application Programming Interface (API) technology to partner with popular trading software to offer a wide range of platform choices to Investors. Tradier brokerage offers integration with one of the widest ranges of platforms we’ve seen, including Esignal, Orion Multi Trader, Stockstotrade, 1Option, Evati, and many, many more. 

Tradier offers 2 pricing options — infrequent traders may want to opt for Tradier’s 0 Stocks and $0.35 per Options contract trading, while very active traders can often save money by opting into Tradier’s $30 monthly all-inclusive option and Equity, which cuts commissions entirely.

Tradier TradeHawk platform is exceptionally impressive, combining intuitive 1-click order placements with a vast range of indicators and charting tools. TradeHawk is also completely compatible with both Apple and Android mobile devices. Though we’d love to see Tradier expand into mutual funds and offer a bit more in the way of educational tools, the broker remains a top choice for advanced traders and those looking for enhanced customization options.

Best For
  • Very active options traders who would benefit from a flat-rate monthly charge instead of per-contract fees.
  • Advanced traders looking for a customizable broker with a wide range of platforms that can be integrated.
  • Prominent options traders get high-quality execution, real-time market data and subscription trading.
Pros
  • Wide range of integrated platforms provide an option for any trader.
  • All-inclusive per-month subscriptions available in lieu of per-contract commissions can potentially save very active traders hundreds of dollars a month.
  • Platforms are powered by quality real-time market data and execution.
  • Paper trading and Sandbox building mode allows particularly tech-savvy traders to create a platform and strategies customized to their preferences and needs.
  • Exceptionally affordable margin rates.
Cons
  • While good for active traders, newer traders may prefer a platform with fewer integration choices and a more streamlined approach.
  • No online mutual funds currently available.

Step 2: Decide how many shares you want.

Next you must decide how much you want to wager on MGM stock. The actual dollar amount rests on many personal factors, such as risk tolerance and budget size. You will also want to consider how much shares have already gained over the last several months. As such, a correction risk exists, which may influence your decision.

Once you have a target spend in mind, take that dollar amount and divide it by the market price of your prospective stock. Whatever is the whole number is the available share count for acquisition. For instance, if you wish to purchase $1,000 worth of MGM stock, you may acquire 26 shares ($1,000 / $38.41 = 26.03).

Some brokerages allow you to purchase fractional shares. If this is important to you, include it in your criteria of best brokers.

Step 3: Choose your order type.

Because of the constant fluctuations in the equities sector, you must select from different order types to conduct your transactions. Additionally, you will want to educate yourself on how to buy stocks with these key market concepts.

  • Bid: The bid is the highest price that a buyer will pay for a stock. It is always lower than the ask.
  • Ask: Conversely, the ask is the lowest price that a seller will accept. It is always higher than the bid.
  • Spread: The spread is the difference between the bid and ask. This is significant because market makers profit from this bid-ask spread when distributing shares to purchasing investors. Also, the spread is an indicator of market liquidity (a narrow spread usually indicates a liquid market and a wide spread suggests a less liquid market).
  • Limit order: If you want to execute a trade at a specific price, you should place a limit order. This order type provides maximum control and transparency over your transactions. However, the disadvantage is that your target stock is not guaranteed to hit the price and trigger the limit order.
  • Market order: On the other hand, if you want assurances that your order will go through, then the market order is your best choice. Market orders fulfill at the next available price and settle if placed within normal session hours. But the downside is that market orders execute at the price least favorable to you – buy on the ask, sell on the bid.
  • Stop-loss order: A stop-loss order is essentially a protective market order. This order type automatically executes your order at either a specified price or the next available price. While this is useful during periods of market volatility, if the selloff starts at the beginning of a trading session (known as a gap-down session), you can end up selling your position at a far lower than anticipated price.
  • Stop-limit order: Similarly, you can think of stop-limit orders as protective limit orders. They only execute at your predetermined price, preventing some of the nasty surprises associated with gap-down sessions. Unfortunately, no guarantee exists that your target stock will reach your specified price. If a stock never recovers, it would have been better to place a stop loss.

Step 4: Execute your trade. 

Now that you have a rundown on the mechanics of stock transactions, it’s time to execute your trade. For market orders, use the following steps:

  • Select action type (buy or sell).
  • Enter the shares you wish to acquire (or sell).
  • Place the order.

Limit orders follow an almost identical process, except for the added step of inputting the specified price following the number of shares you wish to transact.

MGM Stock History

During the initial onslaught of the pandemic, only the bravest speculators bought MGM stock. So far, their forecast regarding an eventual return to normal is playing out according to plan. Naturally, MGM shares registered one of the best comeback performances of 2020 because few people gave them a chance.

However, buyers thinking about MGM stock need to think carefully about this opportunity. True, as coronavirus infections decline, consumers will likely resume their normal spending behaviors. At the same time, you don’t know how this crisis will ultimately pan out.

MGM stock has been rising since March 2020 while volume has been steadily declining. Typically you want to see volume confirm the price action — volume should rise as the price rises.

Pros to Buying MGM Resorts Stock

  • Still a contrarian opportunity: Despite the enormous runup in MGM Resorts stock, room for additional upside exists for prospective buyers. This is because much uncertainty clouds the economic narrative. Further, a new strain of the virus could see a slowing of a return to normal. You don’t want to necessarily buy with the crowd.
  • World-renown brand name: When you think of iconic attractions in Las Vegas, MGM Resorts International is one of the brands that easily comes to mind. Plus, we’re talking about Sin City, a vacation site that attracts people from throughout the world. Once the global vaccine rollout makes progress, MGM stock could jump even higher.
  • Pent-up demand: Americans have dealt with long stretches of government-mandated lockdowns. However, it’s not in our nature to stay fearful indefinitely, as the recovery process from Sep. 11, 2001 demonstrated. In other words, this too shall pass.

Cons to Buying MGM Resorts Stock

  • Consumers are still fearful: Unlike other catastrophes, the coronavirus has caused broader paranoia, especially in crowded establishments – such as every attraction on the Las Vegas Strip.
  • Economic concerns are plentiful: While the stock market has likely exceeded most investors’ expectations, equity valuations don’t necessarily represent economic health. Data points like the personal saving rate soaring to 20.5% on an annualized basis in January 2021 indicate deflationary pressure. This would not bode well for MGM stock.
  • Bag-holding concerns:  MGM shares enjoyed a remarkable recovery from the lows of 2020, and many speculators find them profitable. They may be tempted to sell, especially with tax day coming up. Therefore, prospective buyers have a risk of holding the bag on a rapidly deflating stock.

A Tempting Contrarian Wager

Current data from the Centers for Disease Control and Prevention confirms the encouraging potency and effectiveness of the COVID-19 vaccine rollout. Many analysts anticipate a return to normal, which represents a huge positive for MGM Resorts International. 

On the other hand, prospective buyers of MGM stock will want to be careful. Shares have already moved higher, tempting earlier contrarians to exit profitably. Just as we live in the pandemic, proceed with caution as you weigh an investment in MGM. 

Turn to Webull

0 Commissions and no deposit minimums. Everyone gets smart tools for smart investing. Webull supports full extended hours trading, which includes full pre-market (4:00 AM - 9:30 AM ET) and after hours (4:00 PM - 8:00 PM ET) sessions. Webull Financial LLC is registered with and regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is also a member of the SIPC, which protects (up to $500,000, which includes a $250,000 limit for cash) against the loss of cash and securities held by a customer at a financially-troubled SIPC-member brokerage firm.