Monarch Casino & Resort (NASDAQ:MCRI) Shares Gap Down on Disappointing Earnings

Key Points

• Monarch Casino & Resort shares gapped down after the company reported quarterly EPS of $1.76, below the $1.86 consensus estimate, while revenue of $146.26 million also missed forecasts. Revenue nevertheless increased 2.4% year over year.
• The company declared a quarterly dividend of $0.30 per share, equivalent to $1.20 annually and a 1.0% yield, with a payout ratio of 19.23%.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus rating and an average price target of $123.40; institutional investors own 62.37% of the stock, while CEO John Farahi recently sold 5,000 shares.

Monarch Casino & Resort, Inc. (NASDAQ:MCRI - Get Free Report) gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $115.28, but opened at $107.31. Monarch Casino & Resort shares last traded at $114.7470, with a volume of 20,383 shares changing hands.

The company reported $1.76 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.86 by ($0.10). The company had revenue of $146.26 million for the quarter, compared to the consensus estimate of $147.93 million. During the same period in the previous year, the business earned $1.69 EPS. The business's quarterly revenue was up 2.4% compared to the same quarter last year.

Monarch Casino & Resort Announces Dividend

The company 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 dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Tuesday, December 1st. Monarch Casino & Resort's dividend payout ratio is currently 19.23%.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on MCRI shares. UBS Group set a $124.00 price target on Monarch Casino & Resort in a research report on Thursday, July 2nd. Stifel Nicolaus set a $123.00 price target on shares of Monarch Casino & Resort in a research note on Wednesday. Truist Financial increased their price target on Monarch Casino & Resort from $125.00 to $144.00 and gave the stock a "buy" rating in a research note on Monday, July 20th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Monarch Casino & Resort in a report on Monday, August 24th. Finally, Jefferies Financial Group reiterated a "hold" rating on shares of Monarch Casino & Resort in a report on Thursday, July 2nd. One equities research 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 MarketBeat, Monarch Casino & Resort has an average rating of "Moderate Buy" and an average price target of $123.40.

Insider Buying and Selling at Monarch Casino & Resort

In other news, CEO John Farahi sold 5,000 shares of the stock in a transaction on Thursday, September 17th. The stock was 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 owned 611,556 shares in the company, valued at approximately $75,832,944. This represents a 0.81% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 26.34% of the company's stock.

Institutional Investors Weigh In On Monarch Casino & Resort

Institutional investors and hedge funds have recently made changes to their positions in the stock. Allworth Financial LP boosted its holdings in shares of Monarch Casino & Resort by 46.7% in the 2nd quarter. Allworth Financial LP now owns 311 shares of the company's stock valued at $41,000 after acquiring an additional 99 shares during the last quarter. GAMMA Investing LLC raised its holdings in shares of Monarch Casino & Resort by 7.6% during the second quarter. GAMMA Investing LLC now owns 1,791 shares of the company's stock worth $236,000 after purchasing an additional 126 shares during the last quarter. IFP Advisors Inc raised its holdings in shares of Monarch Casino & Resort by 267.6% during the second quarter. IFP Advisors Inc now owns 261 shares of the company's stock worth $34,000 after purchasing an additional 190 shares during the last quarter. PNC Financial Services Group Inc. lifted its position in Monarch Casino & Resort by 11.2% during the first quarter. PNC Financial Services Group Inc. now owns 2,700 shares of the company's stock valued at $258,000 after purchasing an additional 271 shares during the period. Finally, Swiss National Bank lifted its position in Monarch Casino & Resort by 1.2% during the first quarter. Swiss National Bank now owns 25,311 shares of the company's stock valued at $2,420,000 after purchasing an additional 300 shares during the period. 62.37% of the stock is currently owned by institutional investors and hedge funds.

Monarch Casino & Resort Stock Down 0.9%

The company has a market capitalization of $2.05 billion, a price-to-earnings ratio of 18.29 and a beta of 1.37. The business's 50-day moving average is $118.84 and its 200-day moving average is $112.18.

About Monarch Casino & Resort

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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