MCRI Should I Buy
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Monarch Casino & Resort Inc (MCRI) is not a strong buy for a beginner investor with a long-term strategy at this time. While the company has shown strong financial performance and positive earnings, the overbought technical indicators, insider selling, and lack of strong proprietary trading signals suggest waiting for a better entry point.
The stock is in a bullish trend with MACD positively expanding and moving averages showing strength (SMA_5 > SMA_20 > SMA_200). However, the RSI of 90.673 indicates the stock is overbought, suggesting a potential pullback. Key resistance levels are at R1: 113.693 and R2: 118.691, with the current pre-market price at 116.65 nearing R2.
Strong Q1 earnings beat with GAAP EPS of $1.52 and revenue of $136.5 million.
Quarterly dividend of $0.30 per share, reflecting stable cash flow.
Analysts have raised price targets, with Truist setting a target of $125 and maintaining a Buy rating.
Insider selling has increased significantly by 193.58% over the last month.
Hedge funds are neutral, showing no significant trading trends.
Stock is overbought according to RSI, indicating a potential pullback.
In Q1 2026, Monarch Casino reported revenue of $136.5 million, exceeding expectations. In 2025/Q4, revenue increased by 4.08% YoY, net income surged by 444.86% YoY, and EPS grew by 468.18% YoY. Gross margin improved to 45.86%, up 3.71% YoY.
Analysts are generally positive on MCRI. Truist raised the price target to $125 with a Buy rating, citing strong population dynamics and high-quality assets. Stifel raised the target to $102 but maintained a Hold rating, while Wells Fargo increased the target to $97 with an Equal Weight rating, citing a stable outlook for U.S. land-based gaming.
