MGM Plans to Acquire $2 Billion in Shares Following Q1 ShareBuying Spree
Published: April 30, 2025, 5:51 PM EST
Last Updated: April 30, 2025, 5:51 PM EST
Todd Shriber @etfgodfather | Finance & Gambling | M&A | Casinos
MGM Resorts Doubles Down on $2 Billion Stock Repurchase Program* Completes $150 million share buyback in Q1 2025
The gambling titan, MGM Resorts International (NYSE: MGM), is beefing up its stock-buying arsenal with a $2 billion repurchase program extension. This announcement comes hot on the heels of a similar $2 billion buyback effort made public in November 2023. MGM's stock surged by 3.31% in after-hours trading, sparked by this new buyback announcement, which was disclosed alongside their Q1 2025 financial results.
"Our board of directors sees impressive value in our shares at these price levels, with the authorization of this new $2 billion repurchase program," stated CFO Jonathan Halkyard in an official statement.
As of Q1 2025, MGM sits pretty with a cash cushion of $2.27 billion on hand, indicating there's no need for the gaming colossus to resort to selling debt to fund its share repurchase activities – a plus for shareholders prioritizing robust balance sheets and shareholder rewards.
MGM Stays True to Its Word with Buybacks
Buyback plans are popular among businesses because they provide a tax-efficient way to return capital to shareholders, and flexibility is a bonus. Companies aren't obligated to repurchase a specific amount under these plans, making those that consistently follow through stand out. MGM falls into this group, demonstrating commitment to its buyback pledges since 2021.
Through various repurchase plans since 2021, MGM has slashed its total shares outstanding by 43%. This milestone was achieved with the purchase of 15 million shares during the first three months of 2025, showing that when MGM promises to repurchase its stock, it delivers on that promise.
With $337 million remaining from the November 2023 buyback plan, MGM now has around $2.33 billion available for future repurchases. At MGM's current pace of buybacks, another announcement may be on the horizon by late 2026 or early 2027, but, for now, it's clear that MGM sees value in its stock.
"The markets' volatility has granted MGM Resorts the opportunity to purchase shares at very appealing prices in Q1 2025," added Halkyard.
Competitors Follow in MGM's Footsteps
Gaming stocks are typically not recognized for substantial dividends or high yields. However, MGM's tenacious buyback strategy has arguably pushed competitors to up their own share repurchases.
Since the fourth quarter of 2024, casino operators like Caesars Entertainment (NASDAQ: CZR), Flutter Entertainment (NYSE: FLUT), Las Vegas Sands (NYSE: LVS), and Wynn Resorts (NASDAQ: WYNN) have announced buyback plans, indicating a shift toward rewarding shareholders through share repurchases.
First-quarter earnings reports reveal that operators, including MGM, are taking advantage of depressed stock prices to beef up their holdings of their own shares.
- The extension of MGM Resorts International's $2 billion stock repurchase program indicates a financial commitment to its shareholders, a move that could influence other gaming businesses like Caesars Entertainment, Flutter Entertainment, Las Vegas Sands, and Wynn Resorts.
- The Q1 2025 financial results from MGM Resorts International revealed a surge in after-hours trading, following the announcement of the extended stock repurchase program.
- The flexibility of stock repurchase programs allows businesses like MGM to return capital to shareholders in a tax-efficient manner, while offering the company the freedom to adjust its purchases as needed.
- MGM Resorts International, under the leadership of its CFO Jonathan Halkyard, has demonstrated a consistent commitment to its buyback pledges since 2021, slashing its total shares outstanding by 43% through various repurchase plans.
- Personal-finance enthusiasts may find investing in MGM Resorts International appealing due to the company's strong cash position and commitment to returning capital to shareholders through share repurchases.
- The technology sector's influence extends to the finance and gambling industries, as MGM Resorts International leverages technology to analyze market volatility and identify opportunities for share repurchases.
- The coronavirus pandemic has had a significant impact on the finance and business sectors, but companies like MGM Resorts International are demonstrating resilience and adaptability, using market volatility to their advantage when repurchasing shares.
