John Farahi, CEO at Monarch Casino & Resort MCRI, disclosed an insider sell on January 7, according to a recent SEC filing.
What Happened: After conducting a thorough analysis, Farahi sold 3,000 shares of Monarch Casino & Resort. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total transaction value is $230,700.
The latest market snapshot at Tuesday morning reveals Monarch Casino & Resort shares down by 0.0%, trading at $78.52.
Get to Know Monarch Casino & Resort Better
Monarch Casino & Resort Inc is engaged in providing the latest gaming, dining, and hospitality amenities. It owns and operates the Atlantis Casino Resort Spa, a hotel/casino facility in Reno, Nevada, and the Monarch Black Hawk Casino in Black Hawk. The company generates the majority of its revenue from Casinos, followed by Food & Beverage and Hotel Operations.
A Deep Dive into Monarch Casino & Resort's Financials
Revenue Growth: Monarch Casino & Resort's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 3.69%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.
Key Profitability Indicators:
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Gross Margin: With a high gross margin of 54.97%, the company demonstrates effective cost control and strong profitability relative to its peers.
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Earnings per Share (EPS): Monarch Casino & Resort's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.5.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.04.
Market Valuation:
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Price to Earnings (P/E) Ratio: The current P/E ratio of 17.33 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
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Price to Sales (P/S) Ratio: The current P/S ratio of 2.92 is above industry norms, reflecting an elevated valuation for Monarch Casino & Resort's stock and potential overvaluation based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 8.69, Monarch Casino & Resort presents a potential value opportunity, as investors are paying less for each unit of EBITDA.
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
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Navigating the Impact of Insider Transactions on Investments
Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.
When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Important Transaction Codes
Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Monarch Casino & Resort's Insider Trades.
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