Orin
MGMNYSE·Gambling, Resorts & Casinos

MGM Resorts International

Market cap $7.0BP/E 16.8× trailingGross margin 44.2%
$27.99
−0.55 (−1.93%)Tue 27 Oct close 16:00 ET
52-wk $27.69 – $51.59
Orin's take
6out of 10 — how sure Orin is of this read

Orin's own judgment of how firmly the evidence points one way — not the chance the price goes up.

Refreshed 19 Oct, the 8th take on MGM. A new filing or a print queues the next refresh.

MGM Resorts trades at $28.60 as of October 16, 2026, deeply oversold (RSI 17.6) and well below its 50-day ($37.83) and 200-day ($39.38) moving averages after Barry Diller's $48.30/share takeover bid collapsed, stripping out the deal premium.

Standalone operations show sequential improvement—Q2 2026 EPS of $1.11 versus $0.18 in Q2 2025 and BetMGM Q3 revenue of $710M up 7%—but FY2025 was weak with operating margin compressing to 5.7% from 8.7% and total debt surging to $56.2B against just $2.43B in equity, leaving EV/EBITDA at 17.3x, roughly 99% above the peer median. The stock is cheap on P/S at 0.41x (71.5% below peer median) and technically washed out, but the debt overhang and absence of a takeout catalyst argue for patience until operating leverage from improving quarterly results is confirmed.

What could go wrong

  • Debt burden. Total debt surged to $56.2B in FY2025 from $31.6B in FY2024 against only $2.43B in stockholders' equity, driving EV/EBITDA to 17.3x, nearly double the peer median of 8.7x.
  • Margin compression. FY2025 operating margin fell to 5.7% from 8.7% in FY2024 and 11.7% in FY2023, with net income declining 72.4% YoY to $206M; Q3 2025 posted a negative operating income of $112.9M.
  • Failed takeover overhang. The withdrawal of the $48.30/share bid and pending securities investigation into the offer create legal and strategic uncertainty that may cap upside near-term.
  • Revenue growth deceleration. FY2025 revenue growth slowed to 1.7% from 6.7% in FY2024, and Q2 2026 revenue grew just 1.0% YoY, suggesting core Las Vegas and regional operations are softening.

What would change my mind

Q3 2026 earnings. MGM reports Q3 2026 results; operating margin recovery above 8% and EPS above $0.80 would signal the FY2025 weakness was transientbullish
Debt reduction plan. Management announces a credible deleveraging roadmap targeting total debt below $45B within 12-18 monthsbullish
Renewed takeover interest. A new formal acquisition offer emerges at or above $40/share, or the Diller bid is revivedbullish
Further margin deterioration. Q3 2026 operating margin falls below 5% or the quarter posts an operating loss, confirming the FY2025 trend is structuralbearish

Where this comes from: technicals · news, 14 Oct · quarterly results · FY25 fundamentals. Orin's read on MGM; not advice.

How has the share price moved?

27 Oct 2025 – 27 Oct 2026

Down 14.9% over twelve months, from $32.91 on 27 Oct 2025 to $27.99 at the Tue 27 Oct 2026 close. Its highest close in that time was $50.69 on 1 Jun 2026; the last close is 44.8% below it.

Jan 2026AprJulOct
    • Green line: the closing price each trading day.
    • Grey line: the average closing price over the last 50 trading days.
    • Dashed amber line: the same over the last 200 trading days — a slower, smoother line.
    • Bars along the bottom: shares traded each day — green when it closed higher than the day before, rose when lower (the most, 27.7M, on 1 Jun 2026).
    • Flags: the company's filings, on the day they were made (a 10-Q is the quarterly report and a 10-K the annual report; an 8-K reports a major event).

    Largest holders · 13F Q2 2026

    Money flow
    FilerPositionOf fund
    BlackRock$604.3M0.0%
    Vanguard Capital Management$581.2M0.0%
    Vanguard Portfolio Management$395.2M0.0%
    State Street$337.0M0.0%
    Invesco$256.9M0.0%
    Corvex Management$255.7M7.8%
    Geode Capital Management$240.7M0.0%
    Morgan Stanley$226.8M0.0%
    Goldman Sachs Group$149.7M0.0%
    Point72 Asset Management$139.7M0.2%

    90 of the 815 filers we track · quarter ended Q2 2026 · positions, not flows

    Insiders, last 24 months: 276 Form 4 filings; open-market trades net $61.6M. Of the 50 on hand, none was an open-market trade — the rest are grants, option exercises and tax withholding.

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    How is it priced, against its own past and its sector?

    Tue 27 Oct close

    Priced at 16.8× its last 12 months of profit (Tue 27 Oct close) — higher than in 2 of its last 5 fiscal years (middle 18.4×); the typical Consumer Cyclical company on the NYSE is at 20.4×.

    MeasureNowIts usualSector
    P/E16.8×below usual18.4×20.4×
    P/S0.40×below usual0.98×—
    EV/EBITDA17.3×near usual16.7×—
    P/B2.8×below usual3.6×—
    • "Its usual" is the middle of its own last 5 fiscal years.

    P/E: the share price divided by one year of profit per share — roughly how many years of today's profit the price pays for. A company that loses money has no P/E.

    P/S: the company's total market value divided by one year of revenue. Used when there is no profit to measure.

    EV/EBITDA: the price of the whole company (its shares plus its debt, minus its cash) divided by one year of operating profit before interest, tax and write-downs.

    P/B: the share price divided by the book value per share — what the company owns minus what it owes, as its accounts record it. When book value is tiny, P/B swings wildly and says little.

    What do the analysts who cover it publish?

    16 firms rated it in the last 18 months · 27 Oct

    The analysts' average 12-month price target is $43.75 (from $29 to $55) — 56% above the Tue 27 Oct close price. That is their published opinion, not Orin's.

    Average price target

    $43.75

    $29 – $55 · +56% against the last close

    Their ratings
    • 6 buy or overweight
    • 9 hold
    • 1 underweight or sell

    Price target: the share price an analyst publishes for about 12 months ahead. It is the opinion of the firm that wrote it; the average is across the firms that cover the company.

    Overweight / underweight: analysts' rating words: overweight means the firm expects the stock to do better than the others it covers, underweight worse. Their words, not Orin's.

    How is it priced next to the companies it is compared to?

    2 of 2 with a profit

    Priced at 16.8× its last 12 months of profit. Only 2 of the 2 companies it is compared to made a profit (LVS 14.7×, WYNN 21.6×), so there is no typical P/E.

    CompanyMarket valueP/EEV/EBITDAGross marginNet marginROE
    MGMMGM Resorts International$7B16.8×17.3×44.2%2.4%17%
    LVSLas Vegas Sands Corp.$23B14.7×8.0×49.9%12.0%n/m
    WYNNWynn Resorts, Limited$8B21.6×12.5×28.9%5.6%n/m
    • LVS, WYNN: return on equity is not meaningful (n/m) — book value is below zero.
    • The list of companies is the data vendor's choice, so it can include a company a person would not have picked.

    Market value: the share price times the number of shares — what the whole company is priced at.

    P/E: the share price divided by one year of profit per share — roughly how many years of today's profit the price pays for. A company that loses money has no P/E.

    EV/EBITDA: the price of the whole company (its shares plus its debt, minus its cash) divided by one year of operating profit before interest, tax and write-downs.

    Gross margin: the share of each $1 of sales left after the direct cost of making what was sold.

    Net margin: the share of each $1 of sales kept as profit after every cost. Below zero, the company lost money.

    ROE: return on equity: one year of profit as a share of the shareholders' money in the business (its book value).

    Is it priced high or low compared with its own past?

    Tue 27 Oct

    Priced at 16.8× its last 12 months of profit (Tue 27 Oct close). It has no full fiscal year on file since its history starts, so there is nothing of its own to compare with.

    • Now16.8×

    P/E: the share price divided by one year of profit per share — roughly how many years of today's profit the price pays for. A company that loses money has no P/E.

    Fiscal year (FY): the company's own 12-month accounting year, which need not match the calendar year.

    How has its sector been priced?

    Now–Now · Tue 27 Oct

    Consumer Cyclical companies on the NYSE were priced at a typical 20.4× their yearly profit (Tue 27 Oct close).

    • Now20.4×
    • Each year is the middle of that calendar year's daily sector P/E; "Now" is the Tue 27 Oct close figure, the same one in the table above.

    Sector P/E: the middle P/E of the companies in the same sector on the same stock exchange, as the data vendor works it out each day.

    What does a cash-flow model say a share is worth?

    computed 27 Oct at $27.87

    A standard cash-flow model puts it at $126 a share — 354% above the $27.87 price it was computed against (27 Oct).

    ModelValue a shareAgainst the price then
    Standard$126354% above $27.87
    Levered$64128% above $27.87

    Discounted cash flow: a model's estimate of what the company is worth today, from the cash it is forecast to make in future years. Small changes in the forecast move it a lot, and it says little about a company that loses money.

    Standard / levered: two versions of the cash-flow model: the standard one counts the cash before the company pays its lenders, the levered one after.