Traders Buy Large Volume of Call Options on Melco Resorts & Entertainment (NASDAQ:MLCO)

Melco Resorts & Entertainment Limited (NASDAQ:MLCO) was the recipient of some unusual options trading on Tuesday. Investors acquired 26,378 call options on the stock. This represents an increase of 519% compared to the average volume of 4,260 call options.

Melco Resorts & Entertainment Stock Performance

Melco Resorts & Entertainment stock traded up $0.21 during mid-day trading on Tuesday, hitting $5.81. 937,842 shares of the company traded hands, compared to its average volume of 3,352,968. The stock has a fifty day moving average price of $6.43 and a 200-day moving average price of $6.44. The stock has a market cap of $2.44 billion, a price-to-earnings ratio of -26.41, a price-to-earnings-growth ratio of 0.98 and a beta of 1.05. Melco Resorts & Entertainment has a one year low of $4.78 and a one year high of $9.56.

Wall Street Analyst Weigh In

Separately, Morgan Stanley reiterated an “equal weight” rating and issued a $7.50 target price (down from $9.60) on shares of Melco Resorts & Entertainment in a research note on Tuesday, December 17th. Three research analysts have rated the stock with a hold rating and three have issued a buy rating to the company’s stock. According to MarketBeat.com, Melco Resorts & Entertainment has a consensus rating of “Moderate Buy” and an average price target of $9.40.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in MLCO. Eminence Capital LP grew its position in Melco Resorts & Entertainment by 14.0% during the second quarter. Eminence Capital LP now owns 17,502,002 shares of the company’s stock valued at $130,565,000 after acquiring an additional 2,154,509 shares during the last quarter. Coronation Fund Managers Ltd. boosted its stake in shares of Melco Resorts & Entertainment by 15.0% in the 3rd quarter. Coronation Fund Managers Ltd. now owns 13,072,483 shares of the company’s stock valued at $101,835,000 after purchasing an additional 1,705,872 shares in the last quarter. Point72 Asset Management L.P. bought a new position in shares of Melco Resorts & Entertainment during the 2nd quarter valued at $2,914,000. Sei Investments Co. raised its position in Melco Resorts & Entertainment by 173.2% in the 2nd quarter. Sei Investments Co. now owns 602,058 shares of the company’s stock worth $4,491,000 after purchasing an additional 381,653 shares during the period. Finally, Solel Partners LP lifted its stake in Melco Resorts & Entertainment by 34.2% in the second quarter. Solel Partners LP now owns 1,328,000 shares of the company’s stock worth $9,907,000 after purchasing an additional 338,700 shares during the last quarter. 39.62% of the stock is currently owned by hedge funds and other institutional investors.

Melco Resorts & Entertainment Company Profile

Melco Resorts & Entertainment Limited, through its subsidiaries, develops, owns, and operates casino gaming and entertainment casino resort facilities in Asia. It owns and operates City of Dreams, an integrated casino resort that has 500 gaming tables and 800 gaming machines; approximately 1,400 hotel rooms and suites; a wet stage performance theater with approximately 2,000 seats; approximately 30 restaurants and bars, and 150 retail outlets; and recreation and leisure facilities, including health and fitness clubs, swimming pools, spa and salons, and banquet and meeting facilities.