What happened?
Shares of hospitality and casino entertainment company MGM Resorts (NYSE: MGM) jumped 4.6% in the afternoon session after the company reported third quarter results, highlighted a rebound in October Las Vegas results, and amended its voting agreement with People Incorporated, clearing the way for further share repurchases. According to a company press release, MGM Resorts reported third-quarter consolidated revenue of $4.2 billion, down 1%. Consolidated adjusted EBITDA was $403 million, compared with $506 million a year earlier. The company reported a net loss of $17 million, or 7 cents per diluted share. Chief executive Bill Hornbuckle said lower room rates weighed on the third quarter and that October has rebounded. MGM China revenue rose 5% to a quarterly record, and its market share was a record 17.1%. BetMGM and MGM Digital posted topline growth, and BetMGM distributions and branding fees to MGM totaled $34 million. In a separate release, MGM amended its voting agreement with People Incorporated after People withdrew its proposal to acquire the company. Barry Diller and related holders agreed to keep their combined stake at or below 29.9% and to vote with the board on a change-of-control transaction. The company said the agreement supports further repurchases.
The shares closed the day at $28.44, up 4.3% from the previous close.
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What is the market telling us
MGM Resorts’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 5 months ago when the stock gained 16.4% on the news that People Incorporated submitted a non-binding proposal to acquire all outstanding shares of the company it does not already own for $48.30 per share in cash. People Inc., formerly known as IAC, already owns 26.1% of MGM and is seeking to purchase the remaining 73.9% to take the casino operator private. The offer, which values the company at over $18 billion, represents a premium of 10.6% to MGM's most recent closing price and a 24.1% premium to the 30-day volume-weighted average price. The significant premium over recent trading levels drove the stock's sharp increase. Following the news, Susquehanna raised its price target on MGM stock from $45.00 to $50.00 and maintained a positive rating.
MGM Resorts is down 22.3% since the beginning of the year, and at $28.37 per share, it is trading 44% below its 52-week high of $50.69 from May 2026. Investors who bought $1,000 worth of MGM Resorts’s shares 5 years ago would now be looking at only $601.48.
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