Monarch Casino & Resort (NASDAQ:MCRI) Hits New 1-Year High on Analyst Upgrade

Key Points

• Shares hit a 52-week high, trading up to $114.27 after analyst activity and heavy volume; Wells Fargo raised its price target to $99 but kept an "equal weight" rating (its target remains below the current price).
• Record Q1 results: revenue of $136.6M (+8.9% YoY), net income $27.6M (+38.9%), adjusted EBITDA +19%, and EPS $1.52 that beat the consensus $1.15, which helped drive the rally.
• The company declared a $0.30 quarterly dividend (annualized yield ~1.1%), and analyst views are mixed — Truist raised its target to $125 with a "buy" while the consensus remains a "Hold" with an average target of $109.50.

Monarch Casino & Resort, Inc. (NASDAQ:MCRI - Get Free Report)'s share price reached a new 52-week high on Thursday after Wells Fargo & Company raised their price target on the stock from $97.00 to $99.00. Wells Fargo & Company currently has an equal weight rating on the stock. Monarch Casino & Resort traded as high as $114.27 and last traded at $114.24, with a volume of 537586 shares. The stock had previously closed at $98.58.

Several other analysts have also commented on MCRI. Zacks Research lowered shares of Monarch Casino & Resort from a "strong-buy" rating to a "hold" rating in a report on Monday, April 6th. Jefferies Financial Group restated a "hold" rating and issued a $112.00 price objective on shares of Monarch Casino & Resort in a report on Wednesday, December 24th. Weiss Ratings restated a "buy (b-)" rating on shares of Monarch Casino & Resort in a report on Monday, December 29th. Stifel Nicolaus raised their price objective on shares of Monarch Casino & Resort from $97.00 to $102.00 and gave the stock a "hold" rating in a report on Wednesday. Finally, Truist Financial raised their price objective on shares of Monarch Casino & Resort from $120.00 to $125.00 and gave the stock a "buy" rating in a report on Wednesday. Two analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $109.50.

Insider Buying and Selling at Monarch Casino & Resort

In other Monarch Casino & Resort news, CEO John Farahi sold 2,000 shares of the firm's 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 completion of the transaction, the chief executive officer owned 536,304 shares of the company's stock, valued at approximately $53,094,096. This trade represents a 0.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 25.52% of the company's stock.

More 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

Hedge Funds Weigh In On Monarch Casino & Resort

Institutional investors and hedge funds have recently made changes to their positions in the business. Farther Finance Advisors LLC increased its stake in shares of Monarch Casino & Resort by 199.1% during the third quarter. Farther Finance Advisors LLC now owns 329 shares of the company's stock valued at $35,000 after purchasing an additional 219 shares in the last quarter. Osaic Holdings Inc. increased its stake in shares of Monarch Casino & Resort by 210.0% during the second quarter. Osaic Holdings Inc. now owns 465 shares of the company's stock valued at $40,000 after purchasing an additional 315 shares in the last quarter. Kestra Advisory Services LLC bought a new position in shares of Monarch Casino & Resort during the fourth quarter valued at approximately $40,000. TD Private Client Wealth LLC increased its stake in shares of Monarch Casino & Resort by 57.1% during the third quarter. TD Private Client Wealth LLC now owns 594 shares of the company's stock valued at $63,000 after purchasing an additional 216 shares in the last quarter. Finally, Blue Trust Inc. increased its stake in shares of Monarch Casino & Resort by 46.4% during the third quarter. Blue Trust Inc. now owns 612 shares of the company's stock valued at $65,000 after purchasing an additional 194 shares in the last quarter. Institutional investors own 62.37% of the company's stock.

Monarch Casino & Resort Price Performance

The firm has a market cap of $2.03 billion, a P/E ratio of 19.36 and a beta of 1.30. The stock'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 announced 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. The company had revenue of $136.55 million during the quarter, compared to the consensus estimate of $128.49 million. Monarch Casino & Resort had a net margin of 19.62% and a return on equity of 20.02%. The business's revenue for the quarter was up 8.9% compared to the same quarter last year. Equities research analysts anticipate that Monarch Casino & Resort, Inc. will post 5.95 earnings per share for the current year.

Monarch Casino & Resort Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Monday, June 1st will be given a dividend of $0.30 per share. The ex-dividend date of this dividend 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 22.10%.

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.

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