Stock of the Week
Positive news that MGM Resorts is starting to reopen hotels. Here is what we said when we positively rated the stock on the 8th of April:
Since March 30th, Paul Salem (Chairman, joined 2018) has purchased $8 million worth of stock at $11 per share, and Keith Meister (Director, 2019) has purchased $18.6 million worth of stock at $11.50, on behalf of Corvex Management. These are confident purchases. Corey Sanders (CFO, joined 2010) purchased 24,991 shares at $12, spending $300,000 in his second and largest purchase. William Hornbuckle (CEO since March 2020, joined 2002) purchased $600,000 worth of stock at $11.97, also his second and largest purchase. This is an aggressive cluster of buying and comes just after Jim Murren (former CEO/CB) resigned effective March 22. We are ranking the stock +1.
Assured Guaranty (AGO US, +1) – We ranked this stock +N on March 5th based on Andrew Feldstein’s (Chief Investment Officer, 2019) purchases of $1.5 million at $41. The stock has moved lower, but he has continued to buy shares, adding another $7 million worth of stock at an average price of $26.90. In addition, Francisco Borges (Chairman) purchased $260,000 worth of stock at $25.96 and Thomas Jones (Director) has spent $140,000 at $27.60. We are upgrading the stock from +N to +1.