Melco Resorts & Entertainment (NASDAQ:MLCO) Shares Gap Down – Time to Sell?

Melco Resorts & Entertainment Limited (NASDAQ:MLCO)’s stock price gapped down prior to trading on Monday . The stock had previously closed at $7.89, but opened at $7.48. Melco Resorts & Entertainment shares last traded at $7.75, with a volume of 621,023 shares trading hands.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on MLCO shares. Bank of America reduced their target price on Melco Resorts & Entertainment from $8.50 to $7.50 and set a “buy” rating for the company in a research note on Monday, August 12th. JPMorgan Chase & Co. cut shares of Melco Resorts & Entertainment from an “overweight” rating to a “neutral” rating and reduced their price objective for the stock from $10.00 to $7.00 in a research report on Thursday, July 18th. Two research analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $9.82.

Melco Resorts & Entertainment Price Performance

The company has a market cap of $3.37 billion, a price-to-earnings ratio of -18.33, a P/E/G ratio of 1.31 and a beta of 1.06. The firm has a 50-day moving average price of $6.09 and a 200 day moving average price of $6.82.

Melco Resorts & Entertainment (NASDAQ:MLCO) last issued its quarterly earnings data on Tuesday, August 13th. The company reported $0.05 EPS for the quarter, missing analysts’ consensus estimates of $0.10 by ($0.05). Melco Resorts & Entertainment had a negative net margin of 3.11% and a negative return on equity of 11.59%. The firm had revenue of $1.16 billion during the quarter, compared to analyst estimates of $1.16 billion. During the same period in the prior year, the company earned ($0.02) earnings per share. The business’s quarterly revenue was up 22.3% compared to the same quarter last year. On average, equities analysts anticipate that Melco Resorts & Entertainment Limited will post 0.2 EPS for the current fiscal year.

Hedge Funds Weigh In On Melco Resorts & Entertainment

A number of hedge funds have recently added to or reduced their stakes in the stock. Creative Planning increased its position in shares of Melco Resorts & Entertainment by 35.9% in the third quarter. Creative Planning now owns 15,962 shares of the company’s stock worth $124,000 after purchasing an additional 4,220 shares during the period. Clearbridge Investments LLC grew its stake in Melco Resorts & Entertainment by 3.9% during the second quarter. Clearbridge Investments LLC now owns 668,801 shares of the company’s stock worth $4,989,000 after buying an additional 24,905 shares in the last quarter. Cetera Investment Advisers increased its holdings in Melco Resorts & Entertainment by 5.3% in the 2nd quarter. Cetera Investment Advisers now owns 169,277 shares of the company’s stock valued at $1,263,000 after buying an additional 8,507 shares during the period. Point72 Asset Management L.P. acquired a new position in shares of Melco Resorts & Entertainment in the 2nd quarter valued at approximately $2,914,000. Finally, Eminence Capital LP lifted its holdings in shares of Melco Resorts & Entertainment by 14.0% during the 2nd quarter. Eminence Capital LP now owns 17,502,002 shares of the company’s stock worth $130,565,000 after acquiring an additional 2,154,509 shares during the period. Institutional investors own 39.62% of the company’s stock.

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.