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Executive at Casino Operator Offloads Large Amount of Shares Following Earnings Miss

A member of MGM Resorts International (NYSE:MGM)’s executive team offloaded a large amount of shares earlier this week. Chief Customer Development Officer Robert H. Baldwin discarded 106,160 shares on Tuesday at prices between $26.21 and $26.30 per share. The shares were held via a trust fund called the Robert Baldwin Trust, which currently owns 29,636 shares. Mr. Baldwin, a world-class poker player, also holds a direct ownership stake of 316,044 shares. He is good at assessing the odds and the investment community should probably take notice of his recent sale.

The shares of the global player in entertainment and hospitality took a hit in mid-February when the company released a disappointing earnings report. MGM Resorts International (NYSE:MGM)’s domestic resorts, which include properties on the Las Vegas Strip, generated revenue of $1.8 billion during the fourth quarter, an increase of 17% year-over-year. Revenue per available room at the casino company’s Las Vegas Strip resorts rose by 3%. MGM Resorts posted a net income figure of $24.7 million, as compared to a year-earlier net loss of $781.4 million. Nonetheless, the bottom-line figure for the December quarter missed expectations. The company recently announced plans to expand its presence in Tokyo, as Japan appears to be on track to become the world’s second-largest casino market. The shares of MGM Resorts are up 31% in the past 12 months. Roberto Mignone’s Bridger Management owned 2.81 million shares of MGM Resorts International (NYSE:MGM) at the end of 2016.

Executive at Well-Known Marriott International Discards Sizeable Block of Shares

A high-ranked executive at Marriott International Inc. (NASDAQ:MAR) also unloaded a large block of shares this week. Anthony Capuano, Executive Vice President and Global Chief Development Officer, liquidated 30,000 shares on Tuesday at prices from a low of $87.42 to a high of $87.67 per share. Mr. Capuano currently owns an aggregate of 61,405 shares following the recent sale.

The worldwide operator, franchisor and licensor of hotels and timeshare properties has seen its market capitalization jump by 28% in the past year. Analysts at SunTrust Robinson Humphrey recently downgraded Marriott International Inc. (NASDAQ:MAR) to ‘Hold’ from ‘Buy’ despite raising their price target to $88 from $75. According to analysts at SunTrust, the market is already pricing in their best-case scenario, a scenario that could be quite challenging for the company to achieve. SunTrust analysts say that even in the very best case, with growth in revenue per available room of 5% next year, Marriott shares could at best reach the high $90s. Jonathon Jacobson’s Highfields Capital Management owns 10.92 million shares of Marriott International Inc. (NASDAQ:MAR) as of the end of December.

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