Exploring MGM Resorts International (MGM) Investor Profile: Who’s Buying and Why?

You've watched MGM Resorts International (MGM) navigate a complex 2025, with institutional investors holding a commanding 68.11% of the stock-but the activity is far from uniform, right? We saw the company post consolidated net revenues of $4.3 billion in the third quarter, a solid 2% jump year-over-year, which should signal clear confidence, but still, a one-time goodwill impairment charge led to a net loss of $285 million for the quarter. So, what's the real conviction here? You have behemoths like BlackRock, Inc. and Davis Selected Advisers holding massive stakes, yet recent filings show a volatile mix: firms like AQR Capital Management LLC dramatically increased their position, adding over 5.65 million shares, while others cut bait. The Street's consensus price target is still a robust $46.27, suggesting a potential 47.40% upside from recent trading levels, but that's a big spread. Are the big players buying the Macau and digital growth story, or are they defintely selling the noise from the Las Vegas Strip? Let's break down who is buying, who is selling, and what their trades tell us about the path to the projected full-year revenue of $17.51 billion.

Who Invests in MGM Resorts International (MGM) and Why?

You are looking for a clear map of who owns MGM Resorts International (MGM) stock and what is driving their decisions, especially with the company's pivot toward digital and international growth. The short answer is that institutional money dominates, viewing MGM as a deeply undervalued asset with significant, near-term catalysts in its digital and Asian segments, but a split between long-term value players and tactical hedge funds creates volatility.

Key Investor Types: Institutional vs. Retail Ownership

The investor base for MGM is heavily skewed toward institutional money, which is typical for a large-cap company with complex assets like casinos and integrated resorts. As of late 2025, institutional investors-think mutual funds, pension funds, and major asset managers-own approximately 68.11% of the company's outstanding shares. This high percentage means large, professional money managers control the stock's direction; they are the folks you need to watch.

The remaining ownership, roughly 31.89%, is split between retail investors and company insiders. Retail investors are often drawn to the recognizable brand and the 'optionality' of the stock-the idea that a single event, like a new gaming license, could unlock massive value. Still, the institutional giants are the primary shareholders. For instance, top institutional holders as of the third quarter of 2025 include Davis Selected Advisers, holding over 23.9 million shares, and Vanguard Group Inc., with over 23.5 million shares. The presence of firms like BlackRock, Inc., holding over 14.5 million shares, signals that passive index funds and large active funds consider MGM a core holding in the leisure and hospitality sector.

• Institutional Investors: Own 68.11%; focus on scale and long-term value.
• Retail Investors: Own the rest; attracted by brand and growth potential.
• Top Holders: Davis Selected Advisers, Vanguard Group Inc., BlackRock, Inc.

Investment Motivations: Growth, Digital, and Capital Return

Investors are buying MGM not just for its iconic Las Vegas Strip properties like Bellagio and MGM Grand, but for three specific, near-term financial catalysts that are fundamentally changing the investment thesis. The company has successfully evolved from a regional operator to a global digital and physical gaming leader.

First, the digital growth engine, BetMGM, is now generating real cash. The venture is on track to deliver an initial cash distribution to MGM of at least $100 million starting in the fourth quarter of 2025, a massive shift from being a cash-consuming startup. The full-year 2025 revenue guidance for BetMGM was raised to at least $2.7 billion, proving the digital platform is a key profit driver.

Second, international recovery and expansion are critical. MGM China achieved a record third-quarter Segment Adjusted EBITDAR in 2025, capturing a market share of 15.5% in the Macau market. Looking further out, the planned integrated resort in Osaka, Japan, and the pursuit of a New York state casino license provide a clear runway for long-term growth. Plus, the company is committed to returning capital to shareholders, authorizing a new $2 billion share repurchase program in the first quarter of 2025, following the repurchase of nearly 15 million shares for $494 million in Q1 2025. This aggressive buyback activity signals management's belief that the stock is defintely undervalued.

If you want to understand the long-term vision behind these numbers, you should review the company's Mission Statement, Vision, & Core Values of MGM Resorts International (MGM).

Investment Strategies: Value, Growth, and Event-Driven Tactics

The strategies used by investors in MGM fall into three main buckets, reflecting the company's dual nature as a stable real estate-backed operator and a high-growth digital play.

Value Investing: This is the dominant approach among the largest institutional holders. They see the stock as trading at a discount to its intrinsic value (the Price to GF Value ratio was 0.58 as of November 2025), essentially getting the high-growth BetMGM and international segments for cheap when factoring in the value of the physical resorts. Chris Davis of Davis Selected Advisers, a classic value investor, increased his stake in Q3 2025, aligning with a philosophy of holding undervalued, well-managed companies for a long-term period-four to seven years.

Growth Investing: This group focuses almost entirely on the digital transformation and international expansion. They are buying for the growth in BetMGM's revenue and the long-term potential of the Japan resort, betting that the market multiple will expand (a 're-rating') as these segments mature. They are comfortable with a higher valuation today because they project massive future cash flow.

Event-Driven/Tactical Trading: Hedge funds often engage in short-term trading based on specific events or regulatory changes. For example, some funds like HG Vora Capital Management, which specializes in event-driven situations, fully exited their 1.5 million share position, valued at an estimated $51.6 million, in Q3 2025. This kind of move is tactical, often reacting to mixed near-term earnings or a specific asset sale, while other hedge funds, like AQR Capital Management LLC, significantly increased their position by over 202% in Q3 2025, indicating a strong conviction in a positive near-term catalyst. This high turnover is why the stock can swing wildly on news. You can't ignore the short-term noise, but you must understand the long-term fundamentals.

Institutional Ownership and Major Shareholders of MGM Resorts International (MGM)

You need to know who is really calling the shots at MGM Resorts International, and the answer is clear: institutional money dominates. As of the latest filings, institutional investors own a commanding 68.11% of the company's stock, which is actually one of the highest institutional ownership rates in the entire Resorts and Casinos industry.

This high concentration means that the buy and sell decisions of a few dozen large funds-not individual retail traders-are the primary driver of the stock's near-term volatility and long-term strategic direction. The sheer scale of their holdings makes them de facto partners in the business. They aren't just passive investors; they are a powerful constituency that management, led by CEO Bill Hornbuckle, must defintely address on capital allocation and growth strategy. You see this influence most clearly in the company's 'Asset Light' strategy and the push for digital expansion.

Top Institutional Investors and Their Stakes

The list of major holders in MGM Resorts International is a who's who of global asset management, including the passive index giants and the active managers who take high-conviction positions. While firms like Vanguard Group Inc and BlackRock, Inc. hold large stakes due to their massive index funds, it's the active managers like Davis Selected Advisers that often signal a strong value thesis or conviction in the company's turnaround story.

Here's the quick math on the largest reported holders based on the most recent 2025 fiscal year data, using the share price of $32.47 from November 2025 to illustrate the value of these positions.

Recent Shifts: What Institutional Trading Tells Us

The trading activity in the third quarter of 2025 tells a story of significant portfolio rebalancing, which is crucial for you to understand. Overall, total shares owned by institutions actually decreased in the last three months by 6.53% to 216,997K shares. That's a noticeable trim, but it hides some very aggressive buying by specific funds.

On one hand, you had major hedge funds taking profits or exiting their positions entirely. Helikon Investments Ltd, for instance, removed 5,324,061 shares, a 60.4% reduction, and Kingstone Capital Partners Texas, LLC completely exited its position by removing 4,528,686 shares. That kind of selling pressure is what can keep a lid on the stock price.

But on the other hand, a few major players doubled down with conviction. AQR Capital Management LLC added a massive 5,654,757 shares, a 202.5% increase in their stake, valued at nearly $196 million. Arrowstreet Capital, Limited Partnership also boosted its stake by 81.4%, adding over 3.4 million shares. This contrasting activity suggests a divergence of opinion: some are taking money off the table after a run-up, while others see the recent dip as a prime buying opportunity, particularly following the company's Q3 2025 earnings report.

The Impact on Stock Price and Corporate Strategy

Institutional buying and selling don't just affect the stock price; they validate or challenge the company's strategic roadmap. When you see funds like AQR and Arrowstreet adding millions of shares, they are essentially voting in favor of MGM Resorts International's strategic direction. This includes the successful 'Asset Light' strategy, where the company sells its real estate assets to REITs like Vici Properties to unlock capital for high-return ventures, as well as their focus on digital expansion.

The recent Q3 2025 results, which reported consolidated net revenues of $4.3 billion and a net loss of $285 million (primarily due to a non-cash goodwill impairment charge), were mixed. However, the institutional support for the strategic pivots is clear. They are backing the growth of the BetMGM North American venture, which is now expected to deliver an initial cash distribution of at least $100 million to MGM Resorts beginning in the fourth quarter of 2025.

• Strategy Validation: Large investors support the capital deployment from the 'Asset Light' model into share repurchases and strategic growth.
• Capital Allocation: The $300 million renovation of the MGM Grand rooms is a direct, tangible investment that major shareholders expect to drive premium revenue and RevPAR.
• Governance Pressure: Their collective size ensures they have a voice in board composition and executive compensation, pushing for shareholder-friendly actions like the announced BetMGM distribution.

For a deeper dive into what drives the long-term vision, you should review the Mission Statement, Vision, & Core Values of MGM Resorts International (MGM).

Key Investors and Their Impact on MGM Resorts International

You need to know who is driving the bus at MGM Resorts International (MGM) because institutional and activist money dictates the company's strategic direction and stock volatility. The investor profile is dominated by institutional funds and one key public company, with their collective holdings accounting for over 70% of the stock.

This high level of institutional ownership, specifically at 70.59%, means the stock is highly sensitive to large-scale buying or selling by a few major players. It's not retail investors setting the price here; it's the big funds. The biggest shareholders include a mix of long-term value funds, index trackers, and a strategic corporate partner, each with a different motivation for holding a massive stake.

The Strategic Corporate Partner and Top Institutional Holders

The single most influential shareholder is not a traditional investment fund but a public company: IAC, Inc. Their stake is a massive 23.66% of the company, making them a strategic partner rather than a passive investor. IAC's influence is less about quarterly trading and more about long-term digital strategy, especially concerning the growth of the BetMGM joint venture.

On the institutional side, the top three holders as of the end of Q3 2025 are the ones to watch. Here's the quick math on their holdings:

• Davis Selected Advisers: Holds 23,953,452 shares, valued at approximately $786.15 million as of September 30, 2025.
• Vanguard Group Inc.: Holds 23,576,877 shares, a foundational index-tracking position.
• Blackrock Inc: Holds 14,598,211 shares, another massive index-tracking position.

Davis Selected Advisers' position is a clear signal of a long-term value thesis. They are not just tracking an index; they are making a conviction bet on the company's future cash flow and asset-light strategy, which you can read more about in Breaking Down MGM Resorts International (MGM) Financial Health: Key Insights for Investors.

Activist Influence and Recent Investor Moves

The most direct influence on corporate governance comes from activist investors (shareholders who push for significant changes). Keith Meister, the founder of Corvex Management, holds a board seat, a classic outcome of an activist campaign. Corvex Management held 5,627,478 shares as of Q2 2025. His presence ensures the board remains focused on capital allocation, margin improvement, and the asset-light strategy (selling real estate and leasing it back).

Recent trading activity by insiders and major funds gives us a clear picture of near-term sentiment. You see a mixed signal, which is defintely important to factor into your model:

The insider selling by a director like Keith Meister, totaling 242,000 shares in September 2025, is a significant red flag. While his fund remains a major holder, a director selling a block of stock is often interpreted as a lack of confidence in the very near-term outlook, even if the long-term thesis is intact. Still, the concurrent buying from a major value investor like Davis Selected Advisers, adding to their existing 23.95 million share position, shows that conviction remains strong among other long-term players. The market is clearly divided on the stock's immediate trajectory.

Market Impact and Investor Sentiment

You're looking at MGM Resorts International (MGM) and seeing a stock with a high profile but mixed signals from the big money, and you're right to be cautious. The short-term investor sentiment is best described as a cautious accumulation within a broader neutral rating, which is a complicated way of saying smart money is divided.

While institutional investors still own a substantial chunk-about 68% of the company-the overall number of funds reporting a position actually decreased by 0.97% in the last quarter. This tells me that while the core institutional base is holding firm, a few smaller players are trimming their exposure. The put/call ratio of 1.02 also suggests a slightly bearish tilt in options trading, which is a quick check on near-term pessimism.

Here's the quick math: total institutional shares owned decreased by 6.53% in the last three months to 216,997K shares. That's a notable drop, but the average portfolio weight dedicated to MGM by the remaining funds actually increased by 20.38%. So, the conviction of the long-term holders is getting stronger, even as the overall pool shrinks. You need to watch who is buying and who is selling.

Who's Buying and Who's Exiting?

The largest institutional shareholders are making calculated moves. Davis Selected Advisers, a major holder, added 132,343 shares in Q3 2025, increasing their total stake to 23,953K shares, which represents 8.76% ownership. They are betting on the long-term, undervalued potential of the company, especially since the stock trades at a price to GF Value ratio of 0.58, indicating it might be undervalued at the current price of around $32.47 per share.

But there's a clear counter-trend. HG Vora Capital Management, for instance, sold its entire holding of 1.5 million shares in Q3 2025, an exit valued at an estimated $51.6 million. This kind of full-stake liquidation from a major hedge fund is a clear signal of concern over near-term catalysts or valuation. Insiders are also selling, with Director Keith A. Meister selling 242,000 shares in September 2025.

• Davis Selected Advisers: Buying, long-term confidence.
• AQR Capital Management: Added 5,654,757 shares in Q3 2025.
• HG Vora Capital Management: Sold entire 1.5 million share stake.
• Millennium Management LLC: Removed almost 2 million shares.

The conviction is there, but the uncertainty is, defintely, real.

Market Response to Mixed Earnings and Digital Wins

The stock market has been reacting to a mixed narrative, which is why the price is down 12.60% over the past year. The Q3 2025 earnings report showed consolidated net revenues of $4.3 billion, a 2% increase year-over-year, primarily due to strong performance in Macau. However, the company reported a net loss of $285 million. This loss was driven by a non-cash goodwill impairment charge of $256 million related to the decision to withdraw the Empire City commercial gaming license application, plus about $93 million in other non-cash write-offs.

The stock price, which was around $31.39 after the Q3 report, reflects the immediate disappointment over the Las Vegas Strip's performance, where EBITDAR dropped 18%. Still, the market is giving credit to the digital side: BetMGM raised its full-year guidance and announced a cash distribution of at least $100 million to MGM Resorts beginning in Q4 2025. The market reacted positively to this BetMGM news, with shares up almost 4% on the day of the announcement. This digital cash flow is a huge shift in the investment story.

Analyst Perspectives on Investor Influence

Analysts are trying to balance the short-term Las Vegas softness against the long-term growth from BetMGM and Macau. The consensus rating is a 'Hold' or 'Moderate Buy', with an average one-year price target of around $45.54. This target suggests a potential upside of about 45.08% from the recent closing price of $31.39.

The key institutional investors, like Davis Advisors, are essentially validating the long-term analyst view that the company is undervalued based on its assets and growth potential, despite the near-term noise. UBS, for example, maintained a 'Neutral' rating but lowered its price target to $37.00 due to the weak Las Vegas results, showing how quickly sentiment can shift based on one segment's performance. The projected annual revenue for the 2025 fiscal year is $14.994 billion, with a projected annual non-GAAP EPS of $1.36.

The analyst community is watching the impact of major capital expenditures, like the $300 million room renovation at MGM Grand, and the strategic moves in Asia, like the integrated resort development in Japan. You can see the long-term vision in the Mission Statement, Vision, & Core Values of MGM Resorts International (MGM). The big investors are essentially forcing management to execute on these growth levers to close the valuation gap.

Finance: draft 13-week cash view by Friday.