The Bull Case For MGM Resorts International (MGM) Could Change Following IAC-Led Insider Buying Wave

• In recent weeks, insiders and major beneficial owners, including media and internet group IAC, have purchased substantial additional stakes in MGM Resorts International, reflecting internal conviction about the company’s prospects in areas such as online gaming and digital sports betting.
• This wave of insider buying, coming alongside MGM’s ongoing push into higher-margin digital offerings and premium resort experiences, offers investors a fresh window into how key stakeholders view the company’s long-term positioning.
• We’ll now examine how this insider buying wave, particularly IAC’s increased stake, may reshape MGM’s existing investment narrative and risk profile.

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MGM Resorts International Investment Narrative Recap

To own MGM Resorts today, you need to believe the mix of Las Vegas resorts, international integrated projects and higher margin digital gaming can ultimately offset recent earnings volatility and high debt. The latest insider buying, including IAC’s increased stake, reinforces confidence around online gaming and sports betting, but it does not materially change the near term catalysts or the core risks tied to capital intensity and brick and mortar demand.

One recent development that fits into this picture is MGM’s appointment of Gary Fritz as Chief Commercial Officer and President of MGM Digital, alongside broader leadership changes. That move sits squarely in the push toward expanding digital gaming and sports betting, the same area IAC has cited in increasing its ownership, and it may influence how effectively MGM can pursue higher margin digital growth while managing the financial strain of large, long dated resort projects.

Yet even with insider confidence and a clearer digital focus, investors still need to weigh the risk that heavy long term project commitments could...

Read the full narrative on MGM Resorts International (it's free!)

MGM Resorts International's narrative projects $18.4 billion revenue and $906.1 million earnings by 2028.

Uncover how MGM Resorts International's forecasts yield a $42.50 fair value, a 14% upside to its current price.

Exploring Other Perspectives

Seven members of the Simply Wall St Community currently value MGM between US$26.92 and US$86.31 per share, highlighting very different expectations. Against this, MGM’s heavy capital commitments to Osaka, Dubai and a potential New York casino raise important questions about future cash flow resilience and earnings volatility that readers may want to explore through multiple lenses.

Explore 7 other fair value estimates on MGM Resorts International - why the stock might be worth over 2x more than the current price!

Build Your Own MGM Resorts International Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your MGM Resorts International research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.
• Our free MGM Resorts International research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate MGM Resorts International's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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