4. MGM Resorts International (NYSE:MGM)
Number of Hedge Fund Holders: 44
MGM Resorts International (NYSE:MGM) is an international holding company. Through its subsidiaries, the company operates as a global leader in the gaming and entertainment industry. It has three major segments, namely MGM Resorts, BET MGM, and MGM International Digital.
It is one of the best Lag Vegas stocks to buy now. MGM was held by 44 hedge funds during the second quarter, with total stakes worth $1.25 billion. Corvex Capital is the top shareholder of the company, with a position worth $260.4 million.
The MGM Resorts segment operates 18 properties in the United States and Macau, moreover, the company is also making its entry into Japan and has signed an implementation agreement for an integrated resort in the country. The BET MGM segment is an online betting and iGaming brand that has a presence in 28 American jurisdictions. Lastly, MGM International Digital is another online sports betting platform run by MGM Resorts International (NYSE:MGM) operating in 10 jurisdictions in Europe and Canada.
As the global casino and gaming industry bounces back from the pandemic the company has positioned itself to further strengthen its market share in the industry. Its recent partnership with Marriott International highlights lucrative prospects of growth and improved market share.
MGM Resorts International (NYSE:MGM) has been making significant strides since the start of the year. The first quarter net revenues came in at $4.4 billion, a 13% rise year-over-year on the back of a diverse portfolio of resorts, casinos, and online presence. The second quarter revenues also improved 10% year-over-year, assuring investors with a growth streak.
As an investor of MGM Resorts International (NYSE:MGM) you should be eyeing its partnership with Marriott International. The MGM Collection with Marriott Bonvoy has 16 MGM properties and is enhancing booking capabilities. This partnership is expected to give the company significant visibility and higher recurring revenues per room.
Longleaf Partners Fund stated the following regarding MGM Resorts International (NYSE:MGM) in its fourth quarter 2023 investor letter:
“MGM Resorts International (NYSE:MGM) & Hyatt – Hospitality companies MGM Resorts and Hyatt were both strong performers in the fourth quarter and for the year, outperforming expectations that the post-COVID travel rebound would ease in 2023. Casino and online gaming company MGM saw double-digit revenue growth and strong 2023 bookings in Las Vegas in the first half, which moderated in the second half but remained solid. A cybersecurity attack negatively impacted 3Q results, but MGM does not expect the $100 million hit to have a material effect on its financial condition and operational results for the year. MGM bought back discounted shares at a 15% annualized rate and authorized another $2 billion buyback in 4Q, which represents another 15% of the company.”
