Melco Resorts & Entertainment (NASDAQ:MLCO) Shares Gap Down on Disappointing Earnings

Melco Resorts & Entertainment Limited (NASDAQ:MLCO)’s share price gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $5.73, but opened at $5.31. Melco Resorts & Entertainment shares last traded at $5.60, with a volume of 912,857 shares traded.

The company reported ($0.01) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.08 by ($0.09). Melco Resorts & Entertainment had a negative return on equity of 16.35% and a negative net margin of 2.04%.

Wall Street Analysts Forecast Growth

MLCO has been the topic of a number of recent research reports. Morgan Stanley reaffirmed an “equal weight” rating and set a $7.50 price objective (down from $9.60) on shares of Melco Resorts & Entertainment in a research note on Tuesday, December 17th. Susquehanna dropped their target price on shares of Melco Resorts & Entertainment from $10.00 to $9.00 and set a “positive” rating for the company in a report on Monday, February 3rd. Finally, Citigroup lowered shares of Melco Resorts & Entertainment from a “buy” rating to a “neutral” rating and lowered their price objective for the stock from $10.00 to $6.00 in a report on Monday, February 10th. Four analysts have rated the stock with a hold rating and two have issued a buy rating to the stock. According to MarketBeat, Melco Resorts & Entertainment has an average rating of “Hold” and a consensus price target of $7.40.

Institutional Investors Weigh In On Melco Resorts & Entertainment

Large investors have recently added to or reduced their stakes in the stock. Arrowstreet Capital Limited Partnership purchased a new position in shares of Melco Resorts & Entertainment during the 4th quarter valued at $28,989,000. Coronation Fund Managers Ltd. lifted its stake in Melco Resorts & Entertainment by 15.0% in the 3rd quarter. Coronation Fund Managers Ltd. now owns 13,072,483 shares of the company’s stock worth $101,835,000 after purchasing an additional 1,705,872 shares in the last quarter. Eminence Capital LP lifted its stake in Melco Resorts & Entertainment by 22.1% in the 4th quarter. Eminence Capital LP now owns 7,735,919 shares of the company’s stock worth $44,791,000 after purchasing an additional 1,402,619 shares in the last quarter. BNP Paribas Financial Markets lifted its stake in Melco Resorts & Entertainment by 206.5% in the 4th quarter. BNP Paribas Financial Markets now owns 2,009,189 shares of the company’s stock worth $11,633,000 after purchasing an additional 1,353,617 shares in the last quarter. Finally, JPMorgan Chase & Co. lifted its stake in Melco Resorts & Entertainment by 1,240.2% in the 4th quarter. JPMorgan Chase & Co. now owns 1,342,132 shares of the company’s stock worth $7,771,000 after purchasing an additional 1,241,986 shares in the last quarter. Institutional investors own 39.62% of the company’s stock.

Melco Resorts & Entertainment Stock Performance

The business’s fifty day moving average price is $5.73 and its two-hundred day moving average price is $6.16. The stock has a market capitalization of $2.41 billion, a P/E ratio of -25.42, a P/E/G ratio of 0.63 and a beta of 1.04.

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.