5 Best Hotel Stocks To Buy Now

04. MGM Resorts International (NYSE:MGM)

Number of Hedge Fund Holders as of Q2, 2022: 46

MGM Resorts International (NYSE:MGM) was incorporated in 1986 and is based in Las Vegas, Nevada. MGM Resorts International (NYSE:MGM), through its subsidiaries, owns and operates casino, hotel, and entertainment resorts in the United States and Macau. MGM Resorts International (NYSE:MGM) was able to repurchase 8% of its outstanding shares in Q2 2022 thanks to normalized FCF.

On September 26, Citi analyst George Choi maintained a Buy rating on MGM Resorts International (NASDAQ:MGM) stock and raised the price target to $58.50 from $58, citing the resumption of Macau-bound e-Visas in late October and early November as a positive surprise. At the end of the second quarter of 2022, 46 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in MGM Resorts International (NYSE:MGM), compared to 59 in the preceding quarter worth $2.18 billion.

In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks, and MGM Resorts International (NYSE:MGM) was one of them. Here is what the fund said:

“MGM Resorts International (NYSE:MGM) is a leading global casino and entertainment company. At its recent price of only $30 per share, we believe MGM is valued at a significant discount to our reasonable $50 per share estimate of the sum-of-the-parts value of its business. Further, the company’s domestic operations are valued at a 18% free-cash-flow yield. Paul Salem, Chairman of the Board, recently acquired shares.”