Monarch Casino & Resort (NASDAQ:MCRI) Shares Cross Below 200 Day Moving Average Following Weak Earnings

Key Points

• Shares fell below their 200-day moving average after Monarch Casino & Resort reported third-quarter EPS of $1.76 and revenue of $146.3 million, both slightly below analyst expectations.
• Despite the quarterly miss, the company posted record results, with revenue up 2.4% year over year, net income rising 1.4%, and adjusted EBITDA increasing 2.1%.
• Monarch declared a quarterly dividend of $0.30 per share, while analysts maintained a generally positive outlook with a “Moderate Buy” consensus and an average price target of $123.40.

Monarch Casino & Resort, Inc. (NASDAQ:MCRI - Get Free Report) passed below its 200-day moving average during trading on Wednesday following a weaker than expected earnings announcement. The stock has a 200-day moving average of $112.27 and traded as low as $107.31. Monarch Casino & Resort shares last traded at $112.26, with a volume of 425,833 shares changing hands.

The company reported $1.76 earnings per share for the quarter, missing the consensus estimate of $1.86 by ($0.10). Monarch Casino & Resort had a net margin of 20.40% and a return on equity of 20.63%. The business had revenue of $146.26 million for the quarter, compared to analyst estimates of $147.93 million. During the same quarter in the previous year, the firm posted $1.69 EPS. The business's revenue was up 2.4% compared to the same quarter last year.

Monarch Casino & Resort Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be issued a $0.30 dividend. This represents a $1.20 annualized dividend and a yield of 1.1%. The ex-dividend date is Tuesday, December 1st. Monarch Casino & Resort's dividend payout ratio is currently 19.23%.

Key Stories Impacting Monarch Casino & Resort

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

• Positive Sentiment: Record quarterly performance: Monarch reported record third-quarter net revenue of $146.3 million, up 2.4% year over year, while adjusted EBITDA increased 2.1% to $56.0 million. Net income rose 1.4% to $32.0 million, and diluted EPS increased 4.1% to $1.76. For the first nine months, revenue grew 5.0%, net income climbed 17.4%, and diluted EPS advanced 21.1%. Monarch Casino Reports Record Third Quarter 2026 Financial Results
• Positive Sentiment: Dividend declared: The company announced a quarterly cash dividend of $0.30 per share, equivalent to $1.20 annually and a yield of approximately 1.1%. The dividend will be paid December 15 to shareholders of record December 1, providing a modest shareholder-return benefit. Monarch Announces Quarterly Cash Dividend
• Positive Sentiment: Potential M&A catalyst: Texas Capital remained bullish on MCRI and identified possible mergers or acquisitions as a catalyst, which could support investor interest if Monarch pursues expansion opportunities. Texas Capital Stays Bullish on Monarch
• Negative Sentiment: Quarterly estimates missed: Diluted EPS of $1.76 was below consensus estimates ranging from $1.86 to $1.91, while revenue of approximately $146.3 million missed the $147.9 million forecast. The modest quarterly revenue and profit growth may not have been enough to offset the near-term disappointment, pressuring the stock despite the record results. Monarch Casino Q3 Earnings and Revenues Miss Estimates

Wall Street Analyst Weigh In

A number of research analysts have commented on the company. Zacks Research upgraded Monarch Casino & Resort from a "strong sell" rating to a "hold" rating in a research note on Friday, September 18th. Texas Capital upgraded Monarch Casino & Resort to a "strong-buy" rating in a research note on Wednesday, September 9th. Truist Financial raised their target price on Monarch Casino & Resort from $125.00 to $144.00 and gave the company a "buy" rating in a report on Monday, July 20th. Wall Street Zen downgraded Monarch Casino & Resort from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. Finally, Stifel Nicolaus reduced their price target on Monarch Casino & Resort from $128.00 to $123.00 and set a "hold" rating on the stock in a research report on Wednesday. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $123.40.

Insiders Place Their Bets

In related news, CEO John Farahi sold 5,000 shares of the firm'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 sale, the chief executive officer directly owned 611,556 shares of the company's stock, valued at approximately $75,832,944. This trade represents a 0.81% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 26.34% of the company's stock.

Hedge Funds Weigh In On Monarch Casino & Resort

A number of institutional investors have recently added to or reduced their stakes in MCRI. Wellington Management Group LLP boosted its stake in shares of Monarch Casino & Resort by 23.2% during the 2nd quarter. Wellington Management Group LLP now owns 188,715 shares of the company's stock valued at $24,837,000 after buying an additional 35,536 shares during the last quarter. The Manufacturers Life Insurance Company bought a new stake in shares of Monarch Casino & Resort in the 2nd quarter worth about $678,000. Legal & General Group Plc acquired a new stake in shares of Monarch Casino & Resort in the 2nd quarter valued at about $3,467,000. BlackRock Inc. acquired a new stake in shares of Monarch Casino & Resort in the 2nd quarter valued at about $270,679,000. Finally, Bank of America Corp DE acquired a new stake in shares of Monarch Casino & Resort in the 2nd quarter valued at about $5,501,000. Institutional investors and hedge funds own 62.37% of the company's stock.

Monarch Casino & Resort Price Performance

The firm's 50-day moving average price is $118.62 and its 200 day moving average price is $112.27. The firm has a market cap of $2.01 billion, a P/E ratio of 17.99 and a beta of 1.37.

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.

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