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Two Stocks the Insiders Are Buying

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Insiders are purchasing two entertaining names that will gain from the comeback in travel: Six Flags Entertainment Corporation stocks (NYSE:SIX) and MGM Resorts International stocks (NYSE:MGM). These firms have more than one thing in common: institutional and analyst backing. The bottom line is that, with shares selling at ultra-low prices, these equities seem ideal buys for long-term investors.

 Major Shareholder Increases SIX Stocks

SIX stock (NYSE:SIX) has had some mixed activity in terms of executives, but the net activity is positive even without H Partners acquisitions. Arik Ruchim, the company’s director, currently owns more than 12.6% of H Partners. These acquisitions are in addition to significant purchases made by another director and the company’s CFO in recent weeks. Insiders, excluding H Partners, own around 0.4% of the company, while institutions, including the top shareholder, H Partners, control more than 92% of the stock, and analysts are also optimistic.

SIX stock (NYSE:SIX) is rated as a Moderate Buy by the 11 analysts who have given it a rating in the last year. The average price goal of $32 is down significantly from last year, but it has steadied over the last month, with a strong 40% potential remaining in the projection.

Analysts anticipate a cyclical increase in sales every summer, but the $587 million expected revenue is down 8% from last year’s pandemically-stimulated quarter. Six Flags has a significant 11.75% short interest, which may prevent the price from rising in the near future. This condition might last until the next earnings release or perhaps longer if the news is worse than projected.

Insiders Increase Their Holdings in MGM Stocks

MGM Stock (NYSE:MGM) has seen big purchases from numerous directors as well as one major shareholder. Insiders control just 2.13% of the firm; however, this is boosted by institutional ownership of 67.5% and acquisitions by large shareholder Iac Inc. Iac Inc recently purchased four shares for around $20 million, bringing its total holdings to 66.672 million shares, or slightly short of 17%. The only bad news is that institutional interest in most hotel stocks has been mixed over the last two quarters, which may impact price movement in the short term.

On the other hand, analysts are more optimistic, expecting MGM stock (NYSE:MGM) to rise by 50%. Fourteen analysts with current ratings rank MGM stock (NYSE:MGM) as a Moderate Buy. The average price objective is $52.93 per share, up from last year but down somewhat from a two-quarters-ago high. MGM Resorts International will report profits at the end of October, with revenue forecast to be unchanged sequentially and up 20% year on year.

Featured Image – Megapixl ©  PGregoryB

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