Mgm Resorts International Outlook - Technical Signals Signal Weakness, Fundamentals Mixed

Market Snapshot

Takeaway: Mgm Resorts International (MGM.N) is facing a weak technical outlook with bearish signals dominating and a recent price decline of -9.61%, which aligns with market expectations of pessimism.

News Highlights

Recent developments in the hospitality sector include Hyatt launching 'Unscripted', a soft brand for upscale independent hotels, potentially affecting the competitive landscape. Choice Hotels had its price target reduced by Morgan Stanley, which may impact investor sentiment. Lastly, Hilton’s progress in Saudi Arabia highlights the expansion of international hotel chains, indirectly influencing the broader lodging market.

Analyst Views & Fundamentals

The analyst consensus shows a simple average rating of 3.00 and a historical performance-weighted rating of 1.65, indicating a mixed sentiment. The dispersion of views and a neutral recent rating of "Neutral" from UBS suggest inconsistency among analysts. The current price trend of a -9.61% decline appears to align with the generally pessimistic outlook.

Fundamental factors include the following key values and internal diagnostic scores (0-10):

• EV/EBIT: 132.78 - Score: 0.00
• ROA: 0.28% - Score: 2.00
• GPM: 44.48% - Score: 3.00
• GMAR: 44.48% - Score: 3.00
• Net income to Revenue: -1.26 - Score: 2.00
• Long-term debt to working capital ratio: 50.32% - Score: 2.00
• Cash-UP: 20.47% - Score: 0.00
• GPOA: 4.70% - Score: 0.00
• Inventory turnover days: 5.05 - Score: 2.00
• Cash to Market Value: 49.05% - Score: 2.00

Money-Flow Trends

Big-money investors are showing a negative trend, with a block inflow ratio of 48.55%, while retail investors (small and medium-sized) are showing a positive trend, with inflow ratios at 50.23% and 50.08%, respectively. This divergence indicates a potential tug-of-war between institutional caution and retail optimism.

Key Technical Signals

Technical indicators have painted a weak picture for MGM. Recent signals include the following internal diagnostic scores (0-10):

• WR Overbought - Score: 1.00, suggesting a strong bearish bias
• RSI Overbought - Score: 1.00, also bearish
• WR Oversold - Score: 3.59, showing a mild positive bias
• MACD Death Cross - Score: 4.29, indicating a neutral bias

Recent chart patterns include:

• On 2025-08-28 and 2025-08-29, WR and RSI overbought signals appeared, suggesting bearish pressure.
• On 2025-09-05 and 2025-09-08, WR oversold signs appeared, hinting at a potential short-term bounce.
• On 2025-09-09, WR oversold again, reinforcing the oversold condition.

The overall technical signal is weak, with 3 bearish vs 0 bullish indicators, and the trend is clearly biased downward.

Conclusion

With a weak technical setup and mixed fundamentals, Mgm Resorts International is currently not a strong buy. Investors might consider waiting for a pull-back or further positive confirmation from both price and technical indicators before considering a position. Meanwhile, the divergence in money flow and recent chart patterns suggest continued volatility ahead.