Morgan Stanley Downgrades MLCO to Hold, Sets $6 Target
Morgan Stanley has lowered its rating on MLCO to hold, with a new price target of $6, a 8.50% upside from the current price.
Key Points
- Morgan Stanley downgraded MLCO to a hold rating on June 22, 2026, setting a price target of $6.
- Morgan Stanley's $6 price target implies 8.50% upside from Melco Resorts & Entertainment Limited's ($MLCO) current $5.53 share price.
- Shares of MLCO traded near $5.53 on Monday, with active insider buying and selling in recent months.
- Institutional investors like ARGA Investment Management and FIL Ltd. adjusted their positions in MLCO.
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Morgan Stanley has downgraded its rating on MLCO to hold, setting a new price target of $6. This move was announced on June 22, 2026, as part of their latest analyst update. Shares of MLCO traded near $5.53 on Monday following the announcement.
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Other Institutional Activity in MLCO
Several institutional investors have been adjusting their holdings in MLCO. ARGA Investment Management, LP reduced its stake by 8,344,481 shares, ending with 14,508,114 shares valued at about $82.4 million, a 36.5% decrease. On the other hand, Coronation Fund Managers Ltd. increased its holdings by 2,934,127 shares, bringing its total to 11,269,346 shares worth approximately $64 million, marking a 35.2% increase. FIL Ltd. also expanded its position significantly, adding 4,782,224 shares for a total of 9,431,944 shares valued at $53.6 million, which represents a 102.8% increase.
Insider Buying and Selling at Melco Resorts & Entertainment Limited
Recent insider activity at MLCO includes several significant transactions. On June 3, 2026, Geoffrey Stuart Davis, the CFO, sold 55,512 shares at an average price of $1.93. Earlier, on May 8, 2026, multiple insiders made large purchases: Akiko Takahashi, Chief of Staff, acquired 472,851 shares; Evan Andrew Winkler, President, bought 4,629,888 shares; and CEO Lawrence Yau Lung Ho purchased 4,692,735 shares. These transactions were not part of planned trading programs.
Analysts Set New Price Targets
Morgan Stanley's recent downgrade to a hold rating with a $6 price target was joined by other analyst actions earlier this year. On January 16, 2026, JP Morgan also downgraded MLCO to hold with a $7.7 target. Despite these downgrades, previous ratings from other firms like Citigroup and Susquehanna have maintained more positive outlooks.
Bottom Line
Morgan Stanley's downgrade of MLCO reflects a cautious outlook with a new hold rating and a $6 price target. The stock is currently trading near $5.53, with significant institutional and insider activity suggesting varying levels of confidence in the company's future performance. Investors should consider these factors, keeping in mind that analyst ratings are one piece of the investment puzzle.
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