MGM Resorts Plans $1.25 Billion Stock Buyback in "Dutch Auction"
Owning MGM Resorts (NYSE: MGM) stock is turning into anything but a vacation for investors.
Yesterday after close of trading, MGM announced a big earnings miss, with profits coming in at just $0.08 per share -- a third of what analysts had predicted, and down 43% from the year-ago quarter. Longtime Chairman and CEO Jim Murren announced he will leave the company "prior to the expiration of his contract," and MGM has not yet named a replacement.
Just 10 minutes into the trading day, MGM stock is already down 4.8% at 9:40 a.m. EST -- and MGM just announced it will take advantage of the cheaper stock price (or perhaps, attempt to restore confidence in its stock) by buying back $1.25 billion-worth of its own shares.
Source Fool.com
