BofA/Merrill slashes price target on MGM Growth Properties LLC [MGP] – find out why.

MGM Growth Properties LLC [NYSE: MGP] plunged by -$1.16 during the normal trading session on Thursday and reaching a high of $28.40 during the day while it closed the day at $27.44. MGM Growth Properties LLC stock has also loss -5.74% of its value over the past 7 days. However, MGP stock has inclined by 42.25% in the 3 months of the year. Over the past six months meanwhile, it has lost -8.75% and lost -11.40% year-on date.

The market cap for MGP stock reached $12.77 billion, with 123.26 million shares outstanding and 464.32 million shares in the current float. Compared to the average trading volume of 2.56M shares, MGP reached a trading volume of 2767745 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about MGM Growth Properties LLC [MGP]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for MGP shares is $30.43 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on MGP stock is a recommendation set at 1.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

BofA/Merrill have made an estimate for MGM Growth Properties LLC shares, keeping their opinion on the stock as Buy, with their previous recommendation back on May 21, 2020. While these analysts kept the previous recommendation, Robert W. Baird raised their target price from $30 to $32. The new note on the price target was released on May 19, 2020, representing the official price target for MGM Growth Properties LLC stock. Previously, the target price had yet another drop from $33 to $26, while Citigroup kept a Buy rating on MGP stock.

The Average True Range (ATR) for MGM Growth Properties LLC is set at 1.41, with the Price to Sales ratio for MGP stock in the period of the last 12 months amounting to 14.39. The Price to Book ratio for the last quarter was 1.20, with the Price to Cash per share for the same quarter was set at 3.79.

MGP stock trade performance evaluation

MGM Growth Properties LLC [MGP] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -5.74. With this latest performance, MGP shares gained by 19.25% in over the last four-week period, additionally sinking by -8.75% over the last 6 months – not to mention a drop of -10.71% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for MGP stock in for the last two-week period is set at 52.02, with the RSI for the last a single of trading hit 46.40, and the three-weeks RSI is set at 54.07 for MGM Growth Properties LLC [MGP]. The present Moving Average for the last 50 days of trading for this stock 25.13, while it was recorded at 29.10 for the last single week of trading, and 28.61 for the last 200 days.

MGM Growth Properties LLC [MGP]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and MGM Growth Properties LLC [MGP] shares currently have an operating margin of +30.60 and a Gross Margin at +62.87. MGM Growth Properties LLC’s Net Margin is presently recorded at +9.64.

Return on Total Capital for MGP is now 2.46, given the latest momentum, and Return on Invested Capital for the company is 1.28. Return on Equity for this stock inclined to 4.19, with Return on Assets sitting at 0.75. When it comes to the capital structure of this company, MGM Growth Properties LLC [MGP] has a Total Debt to Total Equity ratio set at 184.71. Additionally, MGP Total Debt to Total Capital is recorded at 64.88, with Total Debt to Total Assets ending up at 39.00. Long-Term Debt to Equity for the company is recorded at 183.87, with the Long-Term Debt to Total Capital now at 64.58.

Reflecting on the efficiency of the workforce at the company, MGM Growth Properties LLC [MGP] managed to generate an average of $21,369,500 per employee. Receivables Turnover for the company is 114.00 with a Total Asset Turnover recorded at a value of 0.08.

Earnings per share (EPS) analysis for MGM Growth Properties LLC [MGP] stock

With the latest financial reports released by the company, MGM Growth Properties LLC posted 0.24/share EPS, while the average EPS was predicted by analysts to be reported at 0.28/share.When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -14.30%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for MGP. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for MGM Growth Properties LLC go to 7.78%.

MGM Growth Properties LLC [MGP]: Insider Ownership positions

There are presently around $3,663 million, or 95.16% of MGP stock, in the hands of institutional investors. The top three institutional holders of MGP stocks are: BARROW HANLEY MEWHINNEY & STRAUSS LLC with ownership of 12,872,998, which is approximately 141.179% of the company’s market cap and around 0.20% of the total institutional ownership; CAPITAL RESEARCH GLOBAL INVESTORS, holding 11,096,362 shares of the stock with an approximate value of $317.36 million in MGP stocks shares; and JANUS HENDERSON GROUP PLC, currently with $207.88 million in MGP stock with ownership of nearly 29.072% of the company’s market capitalization.

Positions in MGM Growth Properties LLC stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 119 institutional holders increased their position in MGM Growth Properties LLC [NYSE:MGP] by around 34,064,575 shares. Additionally, 126 investors decreased positions by around 24,774,307 shares, while 18 investors held positions by with 69,247,547 shares. The mentioned changes placed institutional holdings at 128,086,429 shares, according to the latest SEC report filing. MGP stock had 46 new institutional investments in for a total of 10,451,529 shares, while 59 institutional investors sold positions of 8,566,031 shares during the same period.

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