As reported several days ago, some of the major MGM Resorts International executives have invested over $10.3 million collectively in a couple of days in order to purchase 900,000 shares in the most prominent USA-based casino operator. According to one report released by CDC Gaming Reports, these recent transactions for the operator’s shares are being seen as ways for MGM Resorts International to boost the company’s share price which has decreased by almost 82% since February due to the ongoing coronavirus pandemic and its negative financial impacts.
The same news outlet also detailed that the new Chief Executive Officer for the Las Vegas-based company Bill Hornbuckle is one of the company’s major executives to increase its shareholding in the company. As revealed, Mr. Hornbuckle has invested around $496,177 via two transactions to acquire around 41,000 MGM Resorts International shares.
Chairman of the Company Investing Around $3.92 Million
CDC Gaming Reports also revealed that Bill Hornbuckle’s move was followed by the investment banker Paul Salem who invested around $3.92 million to get approximately 340,000 shares in the company. The experienced banker Paul Salem now serves as the company’s Chairman. According to the same news outlet CDC Gaming Reports, the company’s Chief Financial Officer Corey Sanders also invested around $300,000 to buy around 25,000 shares in MGM Resorts International.
Another company’s board member got in on the act, Keith Meister who parted with $5.66 million to buy 500,000 shares. Needless to say, he topped other board members as he spent the most. The total value of investments in the Las Vegas-based company has been declining after MGM Resorts International was forced to temporarily close its hotel and casino venues located in six states due to the coronavirus pandemic which so far has claimed the lives of over four thousand Americans.
It was reported several days ago that the New York Stock Market-listed casino behemoth is burning through approximately $14.4 million daily while the company probably has around nine months before it runs out of money if the situation remains. Later on, it was detailed that Bill Hornbuckle who just recently replaced the company’s long-time boss Mr. Murren has signed a brand-new management deal according to which he will exchange around $300,000 of his yearly salary for MGM Resorts International shares. Bill Hornbuckle’s contract with the casino operator is set to run through 2024 while his base yearly salary for 2020 according to the most recent contract alteration is set at $1.1 million.
MGM Resorts International Optimism
As one of the most prominent casino operators in the United States, MGM Resorts International is responsible for some of the most iconic gambling-friendly venues including the Casino Las Vegas and Mandalay Bay Resort venues. The company is also responsible for equally impressive Atlantic City-located Borgata Hotel Casino and Spa facility. The casino operator seems very optimistic despite the coronavirus crisis which brings loads of financial issues.
Commenting on the news about the company’s executives increasing their shareholding, MGM Resorts International officials said that the company has a strong liquidity position alongside its balance sheet that at the moment is worth around $3.9 billion. The company’s officials also added that these will allow MGM Resorts International to ultimately rebound once the coronavirus pandemic-related closures and restrictive measures are lifted. To help the company stay in the game, its John McManus who is the company’s Executive Vice-Presidents reduced his and other executives’ base salaries for this year by between 17% and 25%.