Investors Purchase Large Volume of Melco Resorts & Entertainment Call Options (NASDAQ:MLCO)

Melco Resorts & Entertainment Limited (NASDAQ:MLCO) was the target of unusually large options trading on Friday. Stock traders acquired 26,111 call options on the company. This represents an increase of 449% compared to the typical volume of 4,756 call options.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. CIBC Asset Management Inc boosted its stake in shares of Melco Resorts & Entertainment by 4.7% during the 3rd quarter. CIBC Asset Management Inc now owns 22,255 shares of the company’s stock worth $228,000 after acquiring an additional 989 shares in the last quarter. First Quadrant L P CA lifted its holdings in shares of Melco Resorts & Entertainment by 11.8% in the third quarter. First Quadrant L P CA now owns 9,500 shares of the company’s stock valued at $97,000 after purchasing an additional 1,000 shares in the last quarter. Capital International Sarl lifted its holdings in shares of Melco Resorts & Entertainment by 7.2% in the second quarter. Capital International Sarl now owns 15,549 shares of the company’s stock valued at $258,000 after purchasing an additional 1,045 shares in the last quarter. American International Group Inc. lifted its holdings in shares of Melco Resorts & Entertainment by 4.3% in the third quarter. American International Group Inc. now owns 30,499 shares of the company’s stock valued at $312,000 after purchasing an additional 1,270 shares in the last quarter. Finally, Boothbay Fund Management LLC lifted its holdings in shares of Melco Resorts & Entertainment by 4.6% in the second quarter. Boothbay Fund Management LLC now owns 29,505 shares of the company’s stock valued at $489,000 after purchasing an additional 1,299 shares in the last quarter. 38.91% of the stock is owned by institutional investors and hedge funds.

A number of brokerages recently commented on MLCO. Morgan Stanley upgraded Melco Resorts & Entertainment from an “equal weight” rating to an “overweight” rating and set a $13.00 target price for the company in a report on Monday, December 13th. Citigroup lowered their price target on Melco Resorts & Entertainment from $14.50 to $13.50 in a research report on Monday, January 10th. Zacks Investment Research raised Melco Resorts & Entertainment from a “sell” rating to a “hold” rating in a research report on Wednesday. Finally, Credit Suisse Group raised Melco Resorts & Entertainment from an “underperform” rating to an “outperform” rating in a research report on Wednesday, November 24th. Two equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Buy” and a consensus price target of $13.48.

Shares of NASDAQ MLCO opened at $11.10 on Friday. The stock has a fifty day moving average price of $10.36 and a two-hundred day moving average price of $12.12. The company has a debt-to-equity ratio of 6.24, a quick ratio of 1.70 and a current ratio of 1.74. The firm has a market cap of $5.30 billion, a P/E ratio of -6.20 and a beta of 1.84. Melco Resorts & Entertainment has a 1 year low of $8.87 and a 1 year high of $23.65.

Melco Resorts & Entertainment (NASDAQ:MLCO) last released its quarterly earnings data on Tuesday, November 9th. The company reported ($0.43) earnings per share for the quarter, missing the consensus estimate of ($0.38) by ($0.05). The company had revenue of $446.40 million for the quarter, compared to the consensus estimate of $508.65 million. Melco Resorts & Entertainment had a negative return on equity of 53.40% and a negative net margin of 41.34%. The business’s revenue was up 109.7% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.66) earnings per share. On average, research analysts predict that Melco Resorts & Entertainment will post -1.19 earnings per share for the current fiscal year.

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.

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