The New York State Teachers Retirement System sold its 16% shares of MGM Resorts International during the first quarter, according to its most recent SEC filing. The pension fund reduced its stake by selling more than 37,000 shares, leaving it with roughly 0.07% of MGM, worth about $5.76 million at the end of the period.
Key Takeaways
- In the first quarter, the New York State Teachers Retirement System cut its holding in MGM Resorts by 16%.
- The move comes amid increased stock holdings in MGM Resorts from Davis Selected Advisers, Marshall Wace, and Norges Bank.
- MGM Resorts stocks surged in July as a strong performance in Macau assisted the company’s overall outlook.
MGM Resorts International operates casinos worldwide and part-owns online platforms like BetMGM Sportsbook in the U.S.
Institutional sales show changing confidence in the stock. However, MGM has faced obstacles and opportunities as investors evaluate its performance after reporting quarterly earnings in April that surpassed expectations. MGM stated earnings of $0.69 per share on $4.28 billion in revenue, doing better than predicted, even though they generated slightly less revenue than last year.
While the Teachers Retirement System reduced its stake, other key funds recently showed interest in MGM. Davis Selected Advisers raised its position by 4.6% in Q4, and Marshall Wace increased its stake by 50.9%. Norges Bank also opened a substantial new position. Institutional investors control more than 68% of MGM’s stock.
In April, MGM revealed that its board approved a new $2 billion share buyback initiative, demonstrating confidence in its future prospects. This authorization allows MGM to buy back up to 22.4% of its shares on the open market. Meanwhile, the company increased its revenue projection to $2.6 billion in June 2025 following positive momentum to start the year.
Company insiders have also been active. Recent filings with the SEC showed sales by executives, including COO Corey Sanders, who sold 40,000 shares in May for more than $1.37 million, reducing his stake by about 12%. Despite the insider selling, experts continue to be generally positive, with an average target price close to $47 and most rating the stock “Moderate Buy.”
MGM shares currently trade at approximately $37, off a 12-month high of $47.26 but significantly above the low of $25.30. The stock has a beta value of 1.76, indicating higher volatility than the broader market, which is considered a factor influencing some institutional adjustments.
