For Melco Resorts & Entertainment Limited [MLCO], Analyst sees a drop to $7.73. What next?


Melco Resorts & Entertainment Limited [NASDAQ: MLCO] stock went on an upward path that rose over 0.66% on Tuesday, amounting to a one-week price decrease of less than -20.07%. The company report on May 5, 2022 that Melco Announces Unaudited First Quarter 2022 Earnings.

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Melco Resorts & Entertainment Limited (Nasdaq: MLCO) (“Melco” or the “Company”), a developer, owner, and operator of integrated resort facilities in Asia and Europe, today reported its unaudited financial results for the first quarter of 2022.

Total operating revenues for the first quarter of 2022 were US$474.9 million, representing a decrease of approximately 8% from US$518.9 million for the comparable period in 2021. The decrease in total operating revenues was primarily attributable to heightened border restrictions in Macau related to COVID-19 which led to softer performance in the mass market table games segment.

Over the last 12 months, MLCO stock dropped by -74.84%. The one-year Melco Resorts & Entertainment Limited stock forecast points to a potential upside of 60.07.

The market cap for the stock reached $2.26 billion, with 493.37 million shares outstanding and 458.07 million shares in the current float. Compared to the average trading volume of 4.39M shares, MLCO stock reached a trading volume of 6578568 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on Melco Resorts & Entertainment Limited [MLCO]:

CLSA have made an estimate for Melco Resorts & Entertainment Limited shares, keeping their opinion on the stock as Buy, with their previous recommendation back on May 06, 2022. The new note on the price target was released on December 14, 2021, representing the official price target for Melco Resorts & Entertainment Limited stock. Previously, the target price had yet another raise to $10, while JP Morgan analysts kept a Neutral rating on MLCO stock.

The Average True Range (ATR) for Melco Resorts & Entertainment Limited is set at 0.48, with the Price to Sales ratio for MLCO stock in the period of the last 12 months amounting to 1.12. The Price to Book ratio for the last quarter was 5.04.

MLCO Stock Performance Analysis:

Melco Resorts & Entertainment Limited [MLCO] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -20.07. With this latest performance, MLCO shares dropped by -33.14% in over the last four-week period, additionally sinking by -60.48% over the last 6 months – not to mention a drop of -74.84% 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 MLCO stock in for the last two-week period is set at 22.99, with the RSI for the last a single of trading hit 15.41, and the three-weeks RSI is set at 28.59 for Melco Resorts & Entertainment Limited [MLCO]. The present Moving Average for the last 50 days of trading for this stock 7.15, while it was recorded at 5.00 for the last single week of trading, and 10.13 for the last 200 days.

Insight into Melco Resorts & Entertainment Limited Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Melco Resorts & Entertainment Limited [MLCO] shares currently have an operating margin of -26.97 and a Gross Margin at -1.81. Melco Resorts & Entertainment Limited’s Net Margin is presently recorded at -40.34.

Return on Equity for this stock declined to -120.54, with Return on Assets sitting at -9.07.

Melco Resorts & Entertainment Limited’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.40 and a Current Ratio set at 2.40.


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 MLCO. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Melco Resorts & Entertainment Limited go to 8.00%.

Melco Resorts & Entertainment Limited [MLCO] Insider Position Details

There are presently around $844 million, or 41.20% of MLCO stock, in the hands of institutional investors. The top three institutional holders of MLCO stocks are: HARDMAN JOHNSTON GLOBAL ADVISORS LLC with ownership of 22,191,425, which is approximately 4.136% of the company’s market cap and around 33.50% of the total institutional ownership; CAPITAL WORLD INVESTORS, holding 22,089,735 shares of the stock with an approximate value of $100.51 million in MLCO stocks shares; and ARGA INVESTMENT MANAGEMENT, LP, currently with $96.94 million in MLCO stock with ownership of nearly 23.577% of the company’s market capitalization.

Positions in Melco Resorts & Entertainment Limited stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 121 institutional holders increased their position in Melco Resorts & Entertainment Limited [NASDAQ:MLCO] by around 21,643,457 shares. Additionally, 114 investors decreased positions by around 21,160,103 shares, while 41 investors held positions by with 142,705,426 shares. The mentioned changes placed institutional holdings at 185,508,986 shares, according to the latest SEC report filing. MLCO stock had 29 new institutional investments in for a total of 1,542,492 shares, while 39 institutional investors sold positions of 2,682,302 shares during the same period.