Monarch Casino & Resort (NASDAQ:MCRI) Trading 14.2% Higher After Strong Earnings

Monarch Casino & Resort, Inc. (NASDAQ:MCRI) shares traded up 14.2% on Wednesday following a stronger than expected earnings report. The stock traded as high as $111.91 and last traded at $112.5630. 60,176 shares were traded during trading, a decline of 47% from the average session volume of 114,086 shares. The stock had previously closed at $98.58.

The company reported $1.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.15 by $0.37. Monarch Casino & Resort had a return on equity of 20.02% and a net margin of 19.62%.The business had revenue of $136.55 million for the quarter, compared to the consensus estimate of $128.49 million. Monarch Casino & Resort’s quarterly revenue was up 8.9% compared to the same quarter last year.

Monarch Casino & Resort Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Monday, June 1st will be given a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Monday, June 1st. Monarch Casino & Resort’s dividend payout ratio is currently 22.10%.

Trending Headlines about Monarch Casino & Resort

Here are the key news stories impacting Monarch Casino & Resort this week:

• Positive Sentiment: Record Q1 results — Monarch reported revenue of $136.6M (up 8.9% YoY), net income of $27.6M (up 38.9%), adjusted EBITDA up 19%, and diluted EPS $1.52 which beat consensus. Management described the quarter as a record. GlobeNewswire: Q1 Results
• Positive Sentiment: Analyst upgrade/positive take: Truist raised its price target to $125 and kept a “buy” rating — implying roughly ~9% upside from the current level, supporting further upside potential. Benzinga
• Positive Sentiment: Dividend increase/return of capital — the company declared a $0.30 quarterly dividend (record June 1; payable June 15), representing an annualized yield near 1.1%, which supports shareholder returns and can attract income-focused investors.
• Negative Sentiment: Analyst caution: Wells Fargo raised its target slightly to $99 but kept an “equal weight” rating; that target is below the current trading level and implies downside from here. Benzinga
• Negative Sentiment: Analyst caution: Stifel raised its target to $102 with a “hold” rating; that target is also below the current price and signals limited upside per that shop. Benzinga TickerReport

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on the company. Stifel Nicolaus upped their price objective on Monarch Casino & Resort from $97.00 to $102.00 and gave the company a “hold” rating in a research report on Wednesday. Zacks Research downgraded Monarch Casino & Resort from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 6th. Jefferies Financial Group reiterated a “hold” rating and set a $112.00 target price on shares of Monarch Casino & Resort in a research report on Wednesday, December 24th. Wells Fargo & Company increased their target price on Monarch Casino & Resort from $97.00 to $99.00 and gave the stock an “equal weight” rating in a research report on Wednesday. Finally, Weiss Ratings reiterated a “buy (b-)” rating on shares of Monarch Casino & Resort in a research report on Monday, December 29th. Two equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $109.50.

Insider Buying and Selling

In other Monarch Casino & Resort news, CEO John Farahi sold 2,000 shares of the company’s stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $99.00, for a total transaction of $198,000.00. Following the completion of the sale, the chief executive officer directly owned 536,304 shares in the company, valued at $53,094,096. This represents a 0.37% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. 25.52% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Monarch Casino & Resort

Several institutional investors and hedge funds have recently added to or reduced their stakes in MCRI. Tributary Capital Management LLC increased its stake in Monarch Casino & Resort by 57.8% during the third quarter. Tributary Capital Management LLC now owns 389,306 shares of the company’s stock worth $41,204,000 after acquiring an additional 142,621 shares during the last quarter. Qube Research & Technologies Ltd grew its stake in shares of Monarch Casino & Resort by 77.1% in the third quarter. Qube Research & Technologies Ltd now owns 188,498 shares of the company’s stock valued at $19,951,000 after buying an additional 82,035 shares in the last quarter. Hillsdale Investment Management Inc. acquired a new stake in shares of Monarch Casino & Resort in the fourth quarter valued at about $7,244,000. Arrowstreet Capital Limited Partnership grew its stake in shares of Monarch Casino & Resort by 64.5% in the third quarter. Arrowstreet Capital Limited Partnership now owns 178,976 shares of the company’s stock valued at $18,943,000 after buying an additional 70,185 shares in the last quarter. Finally, Clark Capital Management Group Inc. acquired a new stake in shares of Monarch Casino & Resort in the third quarter valued at about $6,192,000. 62.37% of the stock is currently owned by institutional investors and hedge funds.

Monarch Casino & Resort Stock Up 15.9%

The firm has a market cap of $2.03 billion, a price-to-earnings ratio of 19.36 and a beta of 1.30. The business has a 50 day moving average price of $97.49 and a 200-day moving average price of $95.82.

About Monarch Casino & Resort

Monarch Casino & Resort, Inc is a publicly traded owner and operator of an integrated casino resort in Reno, Nevada. The company’s flagship property, the Atlantis Casino Resort Spa, features a full-service casino floor with table games, slot machines, and sports betting, complemented by a diverse portfolio of amenities. Guests can choose from over 800 rooms and suites, dine at multiple on-site restaurants and bars, unwind at the full-service spa and salon, or enjoy live entertainment in the property’s showroom.

Monarch’s revenue streams are diversified across gaming operations, hotel accommodations, food and beverage services, and convention and meeting facilities.