After light activity by insiders over the past year, MGM Resorts International (MGM) stock soared sky high after the company announced that Kirk Kerkorian�s investment firm Tracinda might boost its stake in the company as high as 25% in the coming days.
Tracinda currently owns 18.6% of the company and last sold 20 million shares for $268 million on Feb. 27, 2012.
The news helped boost shares today, with the stock up 6.5% to $13.21, a move that couldn�t have come at a better time for MGM.
Alongside relatively flat insider sentiment, shares have yet to eclipse the $14.80 high they reached nearly a year ago on March 27, 2012.
A March 9 article on Motley Fool drove the knife further as Travis Holum outlined a few contributing factors for� the company�s current woes, writing
MGM Resorts can’t seem to catch a break. Macau is growing, but MGM’s resort is on the wrong side of town. New Jersey is going to allow online gaming, which will be great for operators there, but MGM was kicked out of New Jersey because of its ties to Pansy Ho in Macau. Finally, just as Las Vegas starts to slowly return to revenue and profit growth, Genting Group decides to build another massive resort and suck the air out of MGM’s sails.
Overall, the gaming and casino sector has seen very little activity by insiders. Aside from a Feb. 7 purchase at Bally Technologies (BYI) by CEO Ramesh Srinivasan for $1.2 million, the sector has remained quiet.
No comments:
Post a Comment