Melco Resorts & Entertainment (NASDAQ:MLCO) Trading Down 8.9% – Time to Sell?

Melco Resorts & Entertainment Limited (NASDAQ:MLCO)’s stock price traded down 8.9% on Thursday . The stock traded as low as $5.58 and last traded at $5.6120. 1,342,588 shares traded hands during trading, a decline of 44% from the average session volume of 2,402,937 shares. The stock had previously closed at $6.16.

More Melco Resorts & Entertainment News

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

• Positive Sentiment: Macau momentum and analyst upgrade — Seeking Alpha highlights that Macau gaming growth remains a clear tailwind, driving earnings upside and prompting a ratings upgrade based on a constructive 2026 Macau outlook. Melco Resorts: Macau Growth Creates Upside (Rating Upgrade)
• Positive Sentiment: Operational recovery — Company-reported group property EBITDA grew ~17% y/y, signaling improving margins and cash generation across the portfolio. This underpins investor confidence even with mixed headline results. Melco projects opening of renovated Countdown hotel in Q3 2026 while group property EBITDA grows 17%
• Positive Sentiment: Brand & luxury credentials — Melco captured the most Forbes Travel Guide Five-Star Awards for any integrated-resort operator in 2026, reinforcing its premium positioning which supports higher-margin leisure and F&B revenue. Melco attains world’s most Forbes Travel Guide Five-Star Awards in 2026
• Neutral Sentiment: New property update — Management expects the renovated Countdown hotel to open in Q3 2026, a potential medium-term revenue contributor but not immediate. Countdown hotel renovation and timing
• Neutral Sentiment: Full disclosure & materials available — The company posted an unaudited Q4 release and provided the earnings slide deck and call transcript for investors to review detailed metrics. These documents provide clarity but contain mixed signals. Melco Resorts Announces Unaudited Fourth Quarter 2025 Earnings
• Negative Sentiment: EPS missed estimates — Reported Q4 EPS was $0.05 versus consensus of $0.12, a notable miss that weighed on near-term sentiment despite solid revenue. Press release / presentation with EPS data
• Negative Sentiment: City of Dreams Manila underperformance — The Manila property continues to lag and remains a drag on consolidated results, though analysts note it is not critical to the overall thesis. City of Dreams Manila performance
• Negative Sentiment: Margin & profitability metrics still mixed — The company reported a low net margin and negative return on equity, metrics investors will monitor for sustained improvement. Analysts publicly defended the stock after the earnings shortfall, indicating debate about valuation and near-term prospects. Analysts defend Melco after earnings

Analyst Upgrades and Downgrades

MLCO has been the topic of a number of research reports. Texas Capital raised shares of Melco Resorts & Entertainment to a “strong-buy” rating in a report on Friday, January 23rd. Wall Street Zen downgraded Melco Resorts & Entertainment from a “strong-buy” rating to a “buy” rating in a report on Saturday, December 27th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Melco Resorts & Entertainment in a report on Thursday, January 22nd. Finally, JPMorgan Chase & Co. reissued a “neutral” rating and issued a $7.70 price target (down previously from $11.00) on shares of Melco Resorts & Entertainment in a research note on Friday, January 16th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Melco Resorts & Entertainment has a consensus rating of “Hold” and an average price target of $7.85.

Melco Resorts & Entertainment Stock Performance

The business has a 50 day moving average price of $7.02 and a 200-day moving average price of $8.26. The company has a market capitalization of $2.32 billion, a price-to-earnings ratio of 12.02 and a beta of 0.63.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. FNY Investment Advisers LLC bought a new position in shares of Melco Resorts & Entertainment during the 2nd quarter worth about $38,000. Kestra Advisory Services LLC acquired a new position in Melco Resorts & Entertainment during the 4th quarter worth approximately $48,000. Hilton Head Capital Partners LLC bought a new position in Melco Resorts & Entertainment in the fourth quarter worth approximately $63,000. Solstein Capital LLC grew its stake in Melco Resorts & Entertainment by 74.9% in the second quarter. Solstein Capital LLC now owns 9,340 shares of the company’s stock valued at $68,000 after acquiring an additional 4,000 shares during the period. Finally, Quarry LP bought a new stake in shares of Melco Resorts & Entertainment during the third quarter valued at approximately $68,000. Institutional investors and hedge funds 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.