Monarch Casino & Resort (NASDAQ:MCRI) Shares Gap Down Following Weak Earnings

Monarch Casino & Resort, Inc. (NASDAQ:MCRI)’s share price gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $115.28, but opened at $107.31. Monarch Casino & Resort shares last traded at $114.7470, with a volume of 20,383 shares trading hands.

The company reported $1.76 EPS for the quarter, missing analysts’ consensus estimates of $1.86 by ($0.10). The firm had revenue of $146.26 million during the quarter, compared to analysts’ expectations of $147.93 million. The firm’s revenue for the quarter was up 2.4% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.69 EPS.

Monarch Casino & Resort Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 1st will be paid a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend is Tuesday, December 1st. Monarch Casino & Resort’s dividend payout ratio (DPR) is 19.23%.

Analysts Set New Price Targets

Several brokerages have recently weighed in on MCRI. Stifel Nicolaus set a $123.00 price target on shares of Monarch Casino & Resort in a research report on Wednesday. Jefferies Financial Group restated a “hold” rating on shares of Monarch Casino & Resort in a research report on Thursday, July 2nd. Truist Financial lifted their target price on shares of Monarch Casino & Resort from $125.00 to $144.00 and gave the stock a “buy” rating in a research note on Monday, July 20th. Wells Fargo & Company decreased their target price on shares of Monarch Casino & Resort from $116.00 to $114.00 and set an “equal weight” rating on the stock in a report on Tuesday, July 21st. Finally, Weiss Ratings reissued a “buy (b)” rating on shares of Monarch Casino & Resort in a research note on Monday, August 24th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, Monarch Casino & Resort presently has an average rating of “Moderate Buy” and an average price target of $123.40.

Insider Activity at Monarch Casino & Resort

In related news, CEO John Farahi sold 5,000 shares of the business’s stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $124.00, for a total transaction of $620,000.00. Following the completion of the transaction, the chief executive officer owned 611,556 shares in the company, valued at approximately $75,832,944. The trade was a 0.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Corporate insiders own 26.34% of the company’s stock.

Hedge Funds Weigh In On Monarch Casino & Resort

Institutional investors have recently modified their holdings of the business. BlackRock Inc. acquired a new position in Monarch Casino & Resort in the 2nd quarter valued at about $270,679,000. Bank of New York Mellon Corp acquired a new position in shares of Monarch Casino & Resort during the 2nd quarter worth $16,778,000. Man Group plc acquired a new stake in Monarch Casino & Resort during the 2nd quarter valued at $5,873,000. Bank of America Corp DE purchased a new position in shares of Monarch Casino & Resort during the second quarter valued at approximately $5,501,000. Finally, Wellington Management Group LLP lifted its position in Monarch Casino & Resort by 23.2% during the second quarter. Wellington Management Group LLP now owns 188,715 shares of the company’s stock worth $24,837,000 after buying an additional 35,536 shares during the period. 62.37% of the stock is owned by institutional investors and hedge funds.

Monarch Casino & Resort Stock Down 0.9%

The stock has a market capitalization of $2.05 billion, a PE ratio of 18.29 and a beta of 1.37. The business’s fifty day moving average is $118.84 and its 200-day moving average is $112.18.

Monarch Casino & Resort Company Profile

Monarch Casino & Resort, Inc operates casino resorts in Nevada and Colorado. The company’s properties combine casino gaming with hotel accommodations, dining, entertainment and other hospitality services.

Its principal properties are Atlantis Casino Resort Spa in Reno, Nevada, and Monarch Casino Resort Spa in Black Hawk, Colorado. The resorts offer gaming facilities, restaurants and bars, hotel rooms and suites, spa services, meeting spaces and entertainment options. The company primarily serves regional visitors and destination guests in the western United States.

Monarch Casino & Resort traces its history to the opening of the Atlantis in Reno in 1972.