Monarch Casino & Resort, Inc. (MCRI) Bundle
Who Invests in Monarch Casino & Resort, Inc. (MCRI) and Why?
Who Invests in Monarch Casino & Resort, Inc. (MCRI) and Why?
Understanding the investor profile for Monarch Casino & Resort, Inc. (MCRI) involves examining the types of investors, their motivations, and the strategies they employ.
Key Investor Types
- Retail Investors: Individual investors who buy and sell stocks through brokerage accounts. As of 2024, retail investors hold approximately 30% of MCRI's total shares outstanding.
- Institutional Investors: Organizations such as mutual funds, pension funds, and insurance companies. They own around 55% of the company's shares, indicating strong institutional confidence.
- Hedge Funds: These investment funds employ various strategies to earn active returns for their investors. Hedge funds have increased their holdings in MCRI by approximately 10% over the past year, reflecting a bullish outlook on the company's growth.
Investment Motivations
- Growth Prospects: Investors are attracted to MCRI due to its strong revenue growth, with a reported net revenue of $137.9 million in Q3 2024, a 3.7% increase year-over-year.
- Dividends: The company declared a cash dividend of $0.30 per share payable on December 15, 2024, appealing to income-focused investors.
- Market Position: MCRI's competitive advantage in gaming and hospitality in key markets like Reno and Black Hawk attracts investors looking for stability and growth.
Investment Strategies
- Long-term Holding: Many institutional investors adopt a long-term view, capitalizing on MCRI's consistent growth and profitability. The diluted earnings per share (EPS) for Q3 2024 was $1.47, up 19.5% from the previous year.
- Short-term Trading: Retail investors may engage in short-term trading, taking advantage of price volatility. The stock has shown fluctuations, with a recent trading volume averaging around 200,000 shares per day.
- Value Investing: Investors are drawn to MCRI's low price-to-earnings (P/E) ratio of approximately 20, suggesting potential undervaluation relative to earnings.
Investor Profile Table
| Investor Type | Percentage of Ownership | Primary Motivations | Typical Strategies |
|---|---|---|---|
| Retail Investors | 30% | Growth prospects, dividends | Short-term trading |
| Institutional Investors | 55% | Market position, growth potential | Long-term holding |
| Hedge Funds | 10% | Growth opportunities, strategic investments | Value investing |
Institutional Ownership and Major Shareholders of Monarch Casino & Resort, Inc. (MCRI)
Institutional Ownership and Major Shareholders
As of the third quarter of 2024, Monarch Casino & Resort, Inc. (MCRI) has significant institutional ownership, reflecting confidence from large investors in the company’s performance and strategies.
Top Institutional Investors
| Institution | Shares Held | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 1,546,923 | 8.00% |
| BlackRock, Inc. | 1,411,543 | 7.30% |
| Dimensional Fund Advisors LP | 1,151,540 | 6.00% |
| State Street Corporation | 1,047,872 | 5.40% |
| Invesco Ltd. | 940,287 | 4.80% |
Changes in Ownership
Recent filings indicate that institutional investors have increased their stakes in MCRI. For instance, The Vanguard Group raised its position by 2.5% over the last quarter, while BlackRock increased its holdings by 1.8%. Conversely, some smaller institutional investors have reduced their stakes, but the overall trend shows a net increase in institutional ownership.
Impact of Institutional Investors
Institutional investors play a critical role in stabilizing MCRI’s stock price and influencing its strategic direction. Their significant shareholdings can lead to increased liquidity in trading, which often results in a more favorable stock price performance. Furthermore, institutional investors typically advocate for governance practices that align with long-term growth, which can enhance the company's operational strategies and market position.
For instance, the increase in institutional stakes has been correlated with MCRI’s recent strategic initiatives, including property upgrades and expansion plans, which are likely to be viewed positively by these investors. Additionally, their involvement often brings a level of scrutiny that can lead to improved management practices and accountability within the company.
Key Investors and Their Influence on Monarch Casino & Resort, Inc. (MCRI)
Key Investors and Their Impact on Stock
Notable Investors: As of 2024, the largest shareholders of Monarch Casino & Resort, Inc. include:
- BlackRock, Inc. - owns approximately 11.5% of the total shares outstanding.
- The Vanguard Group, Inc. - holds around 9.8% of shares.
- John Farahi, Co-Chairman, and CEO, holds about 11.4% of the company’s stock.
Investor Influence: These institutional investors significantly influence company decisions through voting power and engagement in shareholder meetings. For instance, BlackRock and Vanguard are known for advocating for corporate governance practices that prioritize long-term value creation. Their presence can also stabilize stock prices during market volatility, as they typically hold large amounts of stock for extended periods.
Recent Moves: In 2024, notable actions include:
- On September 15, 2024, the company repurchased 131,285 shares for a total of $9.6 million.
- The board declared a cash dividend of $0.30 per share payable on December 15, 2024, signaling strong cash flow and confidence in future earnings.
| Investor | Percentage Ownership | Recent Actions |
|---|---|---|
| BlackRock, Inc. | 11.5% | Engaged in governance discussions, advocating for enhanced operational strategies. |
| The Vanguard Group, Inc. | 9.8% | Supported recent dividend policy adjustments in shareholder meetings. |
| John Farahi | 11.4% | Increased personal stake by purchasing additional shares in Q2 2024. |
As of September 30, 2024, the company reported a net income of $27.6 million for Q3, which represents a 14.2% increase year-over-year. The diluted earnings per share (EPS) rose to $1.47, a 19.5% increase compared to the previous year.
Furthermore, the company's total assets as of September 30, 2024, were valued at $671.1 million, while total liabilities stood at $157.9 million. This strong balance sheet positions the company favorably for continued investment and shareholder returns.
Market Impact and Investor Sentiment of Monarch Casino & Resort, Inc. (MCRI)
Market Impact and Investor Sentiment
Investor Sentiment
The current sentiment of major shareholders toward Monarch Casino & Resort, Inc. is predominantly positive. This is evidenced by the company’s consistent financial performance and strategic initiatives aimed at growth. As of September 30, 2024, the company reported a net income of $27.6 million, which reflects a 14.2% increase year-over-year. Additionally, the diluted earnings per share rose to $1.47, marking a 19.5% increase compared to the prior year.
Recent Market Reactions
Recent market reactions indicate a favorable response to changes in ownership and significant investor movements. For instance, on September 15, 2024, the company declared a cash dividend of $0.30 per share, payable on December 15, 2024, which was well-received by investors. Furthermore, in the third quarter of 2024, the company repurchased 131,285 shares at a total cost of $9.6 million, demonstrating confidence in its stock value and commitment to returning capital to shareholders.
Analyst Perspectives
Analysts have expressed optimistic views on the impact of key investors on the company's future. The company’s ongoing investments in property upgrades and expansions, particularly at the Atlantis Casino Resort Spa, are expected to enhance its competitive edge in the market. The company reported an adjusted EBITDA of $50.6 million for the third quarter, a 2.9% increase from the previous year, indicating robust operational performance. Analysts anticipate that such growth strategies will further bolster investor confidence and drive stock performance in the coming quarters.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Revenue | $137.9 million | $133.0 million | +3.7% |
| Net Income | $27.6 million | $24.2 million | +14.2% |
| Adjusted EBITDA | $50.6 million | $49.2 million | +2.9% |
| Diluted EPS | $1.47 | $1.23 | +19.5% |
| Cash Dividend | $0.30 per share | N/A | N/A |
| Shares Repurchased | 131,285 shares | N/A | N/A |
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Article updated on 8 Nov 2024
Resources:
- Monarch Casino & Resort, Inc. (MCRI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Monarch Casino & Resort, Inc. (MCRI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Monarch Casino & Resort, Inc. (MCRI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.