Six Flags Entertainment Corporation and MGM Resorts International are two fun names that will benefit from the rebound in travel. There is more than one thing in common between these companies. With shares trading at low levels, these stocks look like good buys for long-term oriented investors.
MarketBeat.com - MarketBeat The net of activity is bullish even though Six Flags has seen some mixed activity in regards to the executives. H Partners is a company that is owned by a director. The company's CFO and another director have recently made purchases. The institutions, including the largest shareholder H Partners, hold more than 92 percent of the stock and the analysts are bullish as well.
Over the course of a year, the analysts with ratings on Six Flags have kept the Moderate Buy rating. The consensus price target of $32 is down substantially from last year, but it still has a good 40% of upside. The risk/reward ratio is skewed to the upside according to the chatter after the last earnings report. On November 11th, the company is expected to report Q3 earnings.
The analysts expect revenue to go up in the summer, but it will be down from last year. A high short interest may keep the price action from moving in the near term. If the next earnings report is weaker than expected, this will continue.
Several directors and a major shareholder have bought from MGM. The Insiders hold a slim 2.13% of the company, but this is counterbalanced by the 67.5% institutional ownership and purchases of Iac inc. The good news is that institutional activity over the past two quarters has been mixed for most hotel stocks and may affect the price action in the near future.
The analysts think that the stock is going to move up about 50%. Fourteen analysts have a rating of Moderate Buy on this stock. The price target is up from last year but down from a peak two quarters ago. MGM Resorts International is expected to report flat sequential revenue and a 20% gain over last year.
MGM Resorts International appears to be in a reversal that could bring it back down to its recent lows. Confirmation of support at the lows is a buy signal but there is risk. The stock could go to a new low if the earnings are weak.
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