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Assessing MGM Resorts (MGM) Valuation After Fresh Insider Buying Boosts Confidence in Digital Growth Potential

Simply Wall St · 1d ago

Fresh insider buying at MGM Resorts International (MGM), led by major holder IAC snapping up roughly 1.1 million shares, has put the spotlight back on the casino giant's digital and sports betting ambitions.

See our latest analysis for MGM Resorts International.

The fresh insider buying comes on the back of a solid run, with MGM’s share price delivering a low double digit year to date return and a mid single digit total shareholder return over the past year. This suggests momentum is quietly building as investors reassess its digital growth story and risk profile.

If this kind of insider conviction has your attention, it could be a good moment to broaden your search and discover fast growing stocks with high insider ownership.

With shares trading below analyst targets and a hefty estimated discount to intrinsic value despite improving fundamentals, the key question now is clear: is MGM quietly undervalued, or has the market already priced in its digital upside?

Most Popular Narrative: 12% Undervalued

With the narrative fair value set above MGM Resorts International's last close of $37.38, the stage is set around digital growth and premium profitability.

MGM's strong focus on expanding its digital gaming and sports betting segments, including BetMGM North America and rapid progress in international markets like Brazil, is expected to unlock higher margin, faster growing revenue streams, positively impacting both long term revenue growth and company EBITDA margins.

Read the complete narrative.

If you want to see how modest top line growth can still result in powerful earnings compounding, a shrinking share count, and a re rated profit multiple by 2028, read on.

Result: Fair Value of $42.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained weakness in Las Vegas visitation and slower than expected digital adoption could quickly challenge assumptions about MGM's margin expansion and earnings compounding potential.

Find out about the key risks to this MGM Resorts International narrative.

Build Your Own MGM Resorts International Narrative

If this view does not quite match your own, or you would rather dive into the numbers yourself, you can build a tailored MGM thesis in minutes: Do it your way.

A great starting point for your MGM Resorts International research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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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.