MGM to Repurchase $2 Billion in Stock After Feasting on Shares in Q1

Posted on: April 30, 2025, 05:51h. 

Last updated on: May 1, 2025, 09:46h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.
  • Casino operator announces new $2 billion repurchase program
  • Says it bought back 15 million shares in the first quarter

MGM Resorts International (NYSE: MGM) will remain a dedicated buyer of its stock with the largest operator on the Las Vegas Strip announcing a new $2 billion share repurchase program.

The MGM Grand on the Las Vegas Strip. The operator announced a new $2 billion share repurchase plan. (Image: MGM Resorts)

The new buyback plan follows a $2 billion repurchase effort announced in November 2023 and extends the gaming company’s penchant for acquiring its stock. Shares of the Cosmopolitan operator jumped 3.31% in after-hours trading on news of the buyback, which was delivered in conjunction with MGM’s first-quarter results.

We continue to see significant value in our shares at current levels and our Board of Directors have authorized a new $2 billion share repurchase program,” said CFO Jonathan Halkyard in a statement.

MGM concluded the first quarter with $2.27 billion in cash and cash equivalents, indicating it has the capital to fund repurchase activity without a need to sell debt — a trait coveted among investors prioritizing the combination of strong balance sheets and shareholder rewards.

MGM Making Good on Buyback Pledges

Companies embrace buybacks because it’s a tax-efficient avenue for returning capital to shareholders and because of flexibility. Corporations aren’t obligated to buy back the dollar amount, making those that make good repurchase pledges stand out.

MGM is in that camp. Across a series of repurchase plans since 2021, the casino operator has slashed its shares outstanding tally by 43%. That was aided by the acquisition of 15 million shares in the first three months of 2025, confirming that when MGM says it’s going to buy back its stock, it follows through.

There’s $337 million remaining on the November 2023 buyback plan meaning the casino giant now has $2.33 billion with which to fund repurchases. At the operator’s current pace of buyback activity, it’s possible, though not confirmed another buyback announcement could be revealed in late 2026 or early the following year. What is clear is that MGM sees value in its stock.

“The equity market volatility has provided MGM Resorts with the opportunity to repurchase shares at very attractive valuations in the first quarter,” added Halkyard.

Other Operators Following Suit

Following a spate of dividend suspensions caused by the coronavirus pandemic, including one by MGM, gaming stocks aren’t yet known for big payouts and yields in the space remain low. However, MGM’s buyback leadership has also arguably been a catalyst in driving rival casino operators to up their purchases of their shares.

Since the fourth quarter of 2024, buyback announcements have been delivered by Caesars Entertainment (NASDAQ: CZR), Flutter Entertainment (NYSE: FLUT), Las Vegas Sands (NYSE: LVS), and Wynn Resorts (NASDAQ: WYNN), among others in the gaming space.

Importantly, first-quarter earnings reports confirm that operators, including MGM, are capitalizing on discounted valuations to scoop up their own shares.