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State of Play: MQS Management LLC has significantly decreased its investment in Monarch Casino & Resort, Inc. by more than 52%.
This financial move, alongside other institutional adjustments, highlights the evolving landscape for investors in the gambling sector. For instance, the Illinois Municipal Retirement Fund increased its stake in Monarch by 3.9%.
For US casino players and investors, these recent developments come at a crucial time. Despite MQS’s pullback, analysts remain cautiously optimistic, with Monarch Casino’s stock currently showing resilience in trading, opening at $93.17 on Tuesday. Will that trend continue? Only time will tell.
Latest Monarch earnings report exceeded predictions
According to a recent SEC filing, MQS Management sold 3,115 shares of Monarch Casino. It still holds 2,856 shares valued at approximately $247,000.
Several other hedge funds have increased their shares in Monarch, while a few have followed MQS’s lead and sold their shares. This diversification reflects the mixed investor sentiment in the casino industry, especially with the growth of online casinos. Or, rather, the lack thereof, given that only seven states currently permit legal online casinos in the country. The biggest markets are Michigan, New Jersey, Pennsylvania, and West Virginia. And since there is no indication that will change in the next few years, you get this recent news.
The company’s recent earnings report exceeded expectations, providing a stable outlook amid evolving market dynamics. Not to mention an economy that is less than stable and can flip on a whim, given the current political climate.
Looking ahead, industry watchers are poised for upcoming earnings calls, including from Rush Street, which owns BetRivers Casino, and possible adjustments in analyst ratings. Investors will be closely monitoring Monarch Casino’s performance as it approaches its dividend payout date on Dec.15, further signaling its financial health amidst a mixed investment climate.
Based on reporting by MarketBeat.
