Melco Resorts & Entertainment (NASDAQ:MLCO) Shares Gap Down – Here’s What Happened

Melco Resorts & Entertainment Limited (NASDAQ:MLCO)’s share price gapped down prior to trading on Thursday . The stock had previously closed at $5.52, but opened at $5.19. Melco Resorts & Entertainment shares last traded at $5.5490, with a volume of 380,003 shares trading hands.

Trending Headlines about Melco Resorts & Entertainment

Here are the key news stories impacting Melco Resorts & Entertainment this week:

• Positive Sentiment: Melco reported quarterly earnings of $0.06 per share, matching the consensus estimate. The company remained profitable, with a reported net margin of 4.33%. Melco Resorts Q2 Earnings Match Estimates
• Neutral Sentiment: The company’s second-quarter results and management commentary were presented in an earnings call and investor presentation, giving investors additional detail on performance across Melco’s integrated resorts in Asia and Europe. Melco Q2 2026 Earnings Call Transcript
• Negative Sentiment: Revenue was $1.25 billion, below analysts’ $1.26 billion forecast, and decreased 5.7% from the year-ago period. The revenue miss is likely weighing more heavily on the stock than the in-line EPS result because it points to softer business activity and limited top-line growth. Melco Resorts Shares Fall as Q2 Earnings and Revenue Miss Forecasts
• Negative Sentiment: Although EPS met estimates, earnings were weaker than in the comparable prior-year period. Melco also reported a negative return on equity of 32.60%, underscoring ongoing balance-sheet and profitability concerns. Melco Resorts Earnings Report

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on MLCO shares. CLSA upgraded shares of Melco Resorts & Entertainment from a “hold” rating to an “outperform” rating and reduced their price objective for the stock from $6.10 to $6.00 in a research report on Friday, July 10th. Wall Street Zen downgraded shares of Melco Resorts & Entertainment from a “buy” rating to a “hold” rating in a research report on Sunday, June 28th. JPMorgan Chase & Co. cut their price target on shares of Melco Resorts & Entertainment from $6.00 to $5.70 and set a “neutral” rating on the stock in a research note on Thursday, July 16th. Morgan Stanley cut shares of Melco Resorts & Entertainment from an “overweight” rating to a “negative” rating in a research report on Monday, June 22nd. Finally, Susquehanna set a $7.00 price objective on shares of Melco Resorts & Entertainment in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $7.27.

Melco Resorts & Entertainment Trading Up 1.8%

The company has a market capitalization of $2.17 billion, a PE ratio of 9.33, a P/E/G ratio of 3.43 and a beta of 0.59. The firm has a 50 day simple moving average of $5.47 and a two-hundred day simple moving average of $5.64.

Melco Resorts & Entertainment (NASDAQ:MLCO) last announced its quarterly earnings data on Thursday, August 13th. The company reported $0.06 EPS for the quarter, hitting analysts’ consensus estimates of $0.06. Melco Resorts & Entertainment had a net margin of 4.50% and a negative return on equity of 26.45%. The company had revenue of $1.25 billion during the quarter, compared to the consensus estimate of $1.26 billion. During the same quarter in the prior year, the firm earned $0.04 EPS. Melco Resorts & Entertainment’s quarterly revenue was down 5.7% on a year-over-year basis. Research analysts expect that Melco Resorts & Entertainment Limited will post 0.51 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Melco Resorts & Entertainment

A number of institutional investors have recently added to or reduced their stakes in the business. Parallel Advisors LLC raised its stake in shares of Melco Resorts & Entertainment by 1,370.8% during the 1st quarter. Parallel Advisors LLC now owns 5,045 shares of the company’s stock worth $29,000 after buying an additional 4,702 shares in the last quarter. Kestra Advisory Services LLC acquired a new stake in shares of Melco Resorts & Entertainment in the 4th quarter valued at approximately $48,000. Quarry LP acquired a new stake in shares of Melco Resorts & Entertainment in the 3rd quarter valued at approximately $68,000. GAMMA Investing LLC boosted its stake in shares of Melco Resorts & Entertainment by 71.5% in the second quarter. GAMMA Investing LLC now owns 7,570 shares of the company’s stock valued at $40,000 after buying an additional 3,155 shares in the last quarter. Finally, Hilton Head Capital Partners LLC purchased a new stake in shares of Melco Resorts & Entertainment in the fourth quarter valued at approximately $63,000. Hedge funds and other institutional investors own 39.62% of the company’s stock.

About Melco Resorts & Entertainment

Melco Resorts & Entertainment Limited (NASDAQ: MLCO) is a developer, owner and operator of integrated resort destinations in Asia and Europe. The company’s portfolio spans casino gaming, hotel accommodations, retail, dining and entertainment facilities. Melco’s properties feature a mix of luxury hotels, award-winning restaurants, high-limit gaming salons and entertainment venues, catering to a broad range of leisure and business travelers.

In Macau, Melco owns and operates flagship properties including City of Dreams Macau, Altira Macau and Studio City.