Monarch Casino & Resort (NASDAQ:MCRI) Sets New 1-Year High - Still a Buy?

Key Points

• Monarch shares hit a new 52-week high of $120.91 (last trade ~$118.76) on Wednesday, with about 15.7k shares traded; the company has a market cap of roughly $2.11B and a PE of ~20.1.
• The company beat expectations for the quarter, reporting $1.52 EPS vs. $1.15 expected and $136.6M in revenue (up 8.9% year-over-year), with a net margin around 19.6% and ROE near 20%.
• Analysts hold a consensus Hold rating with an average price target of $109.50 (below the current price), though two analysts rate it a Buy and Truist raised its PT to $125; Monarch also declared a $0.30 quarterly dividend (1.0% yield).

Monarch Casino & Resort, Inc. (NASDAQ:MCRI - Get Free Report)'s share price hit a new 52-week high on Wednesday . The company traded as high as $120.91 and last traded at $118.7620, with a volume of 15654 shares traded. The stock had previously closed at $119.27.

Analysts Set New Price Targets

MCRI has been the topic of several recent research reports. Wall Street Zen raised shares of Monarch Casino & Resort from a "hold" rating to a "buy" rating in a research report on Saturday, April 25th. Zacks Research cut shares of Monarch Casino & Resort from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 6th. Stifel Nicolaus lifted their target price on shares of Monarch Casino & Resort from $97.00 to $102.00 and gave the stock a "hold" rating in a research report on Wednesday, April 22nd. Wells Fargo & Company raised their price target on shares of Monarch Casino & Resort from $97.00 to $99.00 and gave the stock an "equal weight" rating in a research note on Wednesday, April 22nd. Finally, Truist Financial raised their price target on shares of Monarch Casino & Resort from $120.00 to $125.00 and gave the stock a "buy" rating in a research note on Wednesday, April 22nd. Two analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, Monarch Casino & Resort has a consensus rating of "Hold" and an average price target of $109.50.

Monarch Casino & Resort Stock Performance

The business's 50 day moving average is $100.78 and its two-hundred day moving average is $96.82. The firm has a market capitalization of $2.11 billion, a PE ratio of 20.13 and a beta of 1.32.

Monarch Casino & Resort (NASDAQ:MCRI - Get Free Report) last released its quarterly earnings results on Tuesday, April 21st. The company reported $1.52 EPS for the quarter, beating analysts' consensus estimates of $1.15 by $0.37. The firm had revenue of $136.55 million during the quarter, compared to analyst estimates of $128.49 million. Monarch Casino & Resort had a net margin of 19.62% and a return on equity of 19.98%. Monarch Casino & Resort's revenue for the quarter was up 8.9% compared to the same quarter last year. As a group, equities research analysts predict that Monarch Casino & Resort, Inc. will post 6.48 EPS for the current year.

Monarch Casino & Resort Announces Dividend

The company also recently declared 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. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Monday, June 1st. Monarch Casino & Resort's payout ratio is 20.34%.

Insider Activity at Monarch Casino & Resort

In other news, CEO John Farahi sold 2,000 shares of the business's stock in a transaction 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 directly owned 536,304 shares in the company, valued at $53,094,096. The trade was a 0.37% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 26.34% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Tributary Capital Management LLC lifted its stake in Monarch Casino & Resort by 57.8% in the third quarter. Tributary Capital Management LLC now owns 389,306 shares of the company's stock worth $41,204,000 after purchasing an additional 142,621 shares during the last quarter. Qube Research & Technologies Ltd grew its holdings in Monarch Casino & Resort by 77.1% in the third quarter. Qube Research & Technologies Ltd now owns 188,498 shares of the company's stock worth $19,951,000 after purchasing an additional 82,035 shares during the period. Hillsdale Investment Management Inc. purchased a new stake in shares of Monarch Casino & Resort during the fourth quarter valued at approximately $7,244,000. Arrowstreet Capital Limited Partnership grew its holdings 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. purchased a new stake in shares of Monarch Casino & Resort during the third quarter valued at approximately $6,192,000. 62.37% of the stock is currently owned by hedge funds and other institutional investors.

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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