Melco Buys Back $160 Million in Shares
The casino operator repurchased 33.1 million American Depositary Shares in the third quarter of 2026 as its stock traded below estimated fair value.
Updated on Nov. 4, 2026 in Casino
Melco Resorts & Entertainment repurchased US$160 million of its shares in the third quarter of 2026, bringing its total 2026 buybacks to 47.1 million shares at a cost of US$236 million. The company said the purchases were made because its share price sat at a dislocated valuation relative to its estimated fair market value.
Why it matters
The buybacks signal that Melco is prioritizing shareholder returns while it continues to reduce debt after years of deleveraging as its corporate priority. Management has indicated it will keep buying stock if shares remain at or around current levels.
Melco repurchased 33.1 million American Depositary Shares in Q3 2026, equal to US$160 million, with total 2026 repurchases reaching 47.1 million shares for US$236 million. The extraction does not say how the company arrived at its fair market value estimate.
The players
Melco Resorts & Entertainment
Melco Resorts & Entertainment is a Hong Kong-listed casino and integrated resort operator with major properties in Macau, including its Studio City subsidiary.
Evan Winkler
Evan Winkler is the President of Melco Resorts & Entertainment, who spoke about the company's buyback priorities.
The details
Melco said it prioritized buying back stock over other uses of capital because its shares traded at a dislocated valuation. The company is not prioritizing raising its stake in Studio City, and it has placed guard rails on reinvestment to protect margins while focusing on disciplined reinvestment relative to player performance. Its President, Evan Winkler, said the company also made changes to its sales force in recent months.
Timeline
Q3 2026: Melco repurchases US$160 million of shares.
2026: Total share repurchases reach 47.1 million shares.
Late 2027: Melco targets resuming dividend payments.
Market Landscape
Melco's buyback fits a period in which Macau casino operators have focused on repairing balance sheets built up during the pandemic instead of pursuing expansion. Its decision to hold off on raising its Studio City stake reflects that same deleveraging priority across the market.
For shareholders, the buybacks reduce the number of shares outstanding while the company works toward resuming dividends by late 2027. Investors should watch whether Melco keeps repurchasing as long as its shares remain near current levels.
The takeaway
Melco's buybacks show a casino operator choosing to return capital to shareholders while its stock trades below estimated value, with dividends expected to follow once debt reduction allows. Readers tracking the stock should watch the company's stated late-2027 dividend target and its repurchase activity.
What happens next
Melco plans to resume dividend payments by late 2027 and will continue buying stock if shares stay at or around current levels.
Further reading
For more on the sector, see the Casino coverage on Wisevoter.
Source note: This article includes information reported by IAG.
