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.
