MGM Joins S&P 500

Sun, Jul 30, 2017

Chairman James Murren called it a “significant milestone” as his company joined Wynn Resorts as only the second gaming operator to gain admission to the prestigious index. It should spell a nice bump for the share price as index funds can now look to MGM as a potential buy.

MGM Resorts International has been admitted to the S&P 500, a move that will open the casino giant’s shares to a wealth of mutual fund and other big index fund buyers.

MGM (NYSE: MGM) is only the second casino operator after Wynn Resorts (Nasdaq: WYNN) to enter the closely watched Standard and Poor’s index of 500 of the most prestigious publicly traded companies on based on market capitalization.

When stocks are added to the S&P, they average about a 3 percent gain in their first week of trading. After one month, companies typically see a 7 percent increase.

Notables include Berkshire Hathaway, Google (Alphabet), Facebook and Microsoft.

MGM Chairman and CEO James Murren called it a “significant milestone” in an ongoing growth story that has seen the Las Vegas-based conglomerate’s share price soar past $30 in recent months.

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