Monarch Casino & Resort, Inc. (NASDAQ:MCRI) Given Average Recommendation of "Hold" by Analysts

Key Points

• Analyst consensus: "Hold" — Six analysts average a Hold rating (four Hold, two Buy) with a one-year price target of $109.50, though individual targets range from about $99 to $125.
• Record Q1 results — Monarch beat estimates with revenue of $136.6M (up 8.9% YoY) and EPS $1.52, while net income rose 38.9% and adjusted EBITDA increased 19%.
• Dividend and insider notes — The company declared a $0.30 quarterly dividend (annualized $1.20, ~1.1% yield; ex-dividend June 1, payable June 15), and the CEO sold 2,000 shares in March; insiders own about 25.5% of shares.

Shares of Monarch Casino & Resort, Inc. (NASDAQ:MCRI - Get Free Report) have earned an average recommendation of "Hold" from the six analysts that are currently covering the firm, Marketbeat.com reports. Four investment analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. The average 1 year price objective among brokerages that have issued a report on the stock in the last year is $109.50.

MCRI has been the topic of several analyst reports. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Monarch Casino & Resort in a report on Monday, December 29th. Jefferies Financial Group reaffirmed a "hold" rating and set a $112.00 price target on shares of Monarch Casino & Resort in a report on Wednesday, December 24th. Truist Financial lifted their price target on shares of Monarch Casino & Resort from $120.00 to $125.00 and gave the company a "buy" rating in a report on Wednesday. Wells Fargo & Company lifted their price target on shares of Monarch Casino & Resort from $97.00 to $99.00 and gave the company an "equal weight" rating in a report on Wednesday. Finally, Zacks Research downgraded shares of Monarch Casino & Resort from a "strong-buy" rating to a "hold" rating in a report on Monday, April 6th.

Monarch Casino & Resort Price Performance

Shares of NASDAQ:MCRI opened at $114.24 on Thursday. Monarch Casino & Resort has a 1-year low of $76.00 and a 1-year high of $114.27. The company has a market capitalization of $2.03 billion, a P/E ratio of 19.36 and a beta of 1.30. The firm's 50 day simple moving average is $97.49 and its two-hundred day simple moving average is $95.82.

Monarch Casino & Resort (NASDAQ:MCRI - Get Free Report) last issued its quarterly earnings results on Tuesday, April 21st. The company reported $1.52 earnings per share for the quarter, beating the consensus estimate of $1.15 by $0.37. Monarch Casino & Resort had a net margin of 19.62% and a return on equity of 20.02%. The business had revenue of $136.55 million for the quarter, compared to the consensus estimate of $128.49 million. The business's quarterly revenue was up 8.9% compared to the same quarter last year. On average, sell-side analysts anticipate that Monarch Casino & Resort will post 5.95 earnings per share for the current fiscal year.

Monarch Casino & Resort Dividend Announcement

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 dividend of $0.30 per share. The ex-dividend date is Monday, June 1st. This represents a $1.20 annualized dividend and a dividend yield of 1.1%. Monarch Casino & Resort's dividend payout ratio (DPR) is presently 22.10%.

Key Monarch Casino & Resort News

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

Insider Activity

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

Institutional Investors Weigh In On Monarch Casino & Resort

Several institutional investors and hedge funds have recently modified their holdings of MCRI. Tributary Capital Management LLC raised its position in shares of Monarch Casino & Resort by 57.8% during the third quarter. Tributary Capital Management LLC now owns 389,306 shares of the company's stock valued at $41,204,000 after buying an additional 142,621 shares during the last quarter. Qube Research & Technologies Ltd raised its position in shares of Monarch Casino & Resort by 77.1% during 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 during the last quarter. Hillsdale Investment Management Inc. bought a new stake in shares of Monarch Casino & Resort during the fourth quarter valued at approximately $7,244,000. Arrowstreet Capital Limited Partnership raised its position in shares of Monarch Casino & Resort by 64.5% during 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 during the last quarter. Finally, Clark Capital Management Group Inc. bought a new stake in shares of Monarch Casino & Resort during the third quarter valued at approximately $6,192,000. Institutional investors own 62.37% of the company's stock.

Monarch Casino & Resort Company Profile

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.

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