MGM Jumps as Vegas Gaming Floors Return to Full Capacity

MGM Resorts stock has increased 192% over the past 12 months

May 13, 2021 at 10:00 AM
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MGM Resorts International (NYSE:MGM) is an American global hospitality and entertainment company. MGM's portfolio encompasses 31 hotel and gaming destinations globally. MGM Resorts has operating destination resorts in Las Vegas, Massachusetts, Detroit, Mississippi, Maryland, and New Jersey, including Bellagio, Mandalay Bay, MGM Grand, and Park MGM. The company also offers U.S. sports betting and online gaming through brands like BetMGM and partypoker. This morning, MGM was last seen up 1.3% at $37.64.

On May 12, MGM Resorts announced that the Nevada Gaming Control Board has approved a return to 100% occupancy and no social distancing on the gaming floors located inside the company's Las Vegas Strip properties. Those properties include the Bellagio, the ARIA, MGM Grand, Mandalay Bay, Park MGM, The Mirage, New York-New York Hotel & Casino, the Luxor, and the Excalibur. The lifted restrictions only apply to gaming floors. The current 80% occupancy restrictions and three-feet social distancing policies would remain in effect outside of the gaming floors, including at restaurants, pools and other non-gaming areas and activities.

This is excellent news for the struggling hospitality company, as MGM Resorts continues to attempt to recover financially after taking huge loses from the COVID-19 pandemic restrictions. Moreover, with restrictions now being lifted on gaming floors, investor focus may shift back to casino and resort names in the next round of earnings reports.

MGM Resorts stock has increased 192% over the past 12 months, and is also trading up 215% from its decade low of $11.77, with added support now emerging from the 80-day moving average. Shares of MGM Resorts stock are up 25% year-to-date, but have fallen 13% from its 12-year high of $42.74.

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