Monarch Casino & Resort Inc. (MCRI) Shares Slip, Investors Watching Closely, Here is Why

Zacks Investment Research (Monarch Casino & Resort Inc.: NASDAQ) shares fell on Wednesday Dec 28 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Meanwhile, U.S. stocks were little changed on Wednesday, as investors found few reasons to keep pushing shares higher towards the 20,000 mark.

The Dow Jones Industrial Average DJIA, -0.11% rose 3.1 points to 19,949, essentially unchanged on the day. The S&P 500 SPX, -0.39% lost 3 points, or 0.1%, to 2,266 while the Nasdaq Composite Index COMP, -0.59% slipped 6.4 points, or 0.1%, to 5,482.

Analysts at Zacks Investment Research downgraded shares of Zacks Investment Research (Monarch Casino & Resort Inc.: NASDAQ) from Buy to Hold in a research note to investors today. Zacks Investment Research currently has a rating of Hold on the shares. As a means of comparison, a number of other analysts have spoken on the stock in recent days, and Monarch Casino & Resort Inc. has secured a consensus one-year price target of $29.00, above the opening price of $25.68, a difference of 11.35 percent. Monarch Casino & Resort Inc. stock has a 52-week high of $27.16. Material and integral digressions in the company’s procedures, future outlook or industry can cause downgrades as the analysts believe that the future prospects for the security have weakened from the original recommendation.

Zacks Investment Research (Monarch Casino & Resort Inc.: NASDAQ) shares last traded at $25.55, a drop of $0.19 per share or -0.74% from the previous closing price. Opening at $25.68, they varied from $25.55 and $25.68 throughout the day.

Zacks Investment Research (Monarch Casino & Resort Inc.: NASDAQ) now has a market cap of 443.75M.

Zacks Investment Research (Monarch Casino & Resort Inc.: NASDAQ) Average Daily Trading Volume

The stock’s average daily volume is 59,419 shares out of a total float 11,091,000 and some 516 shares crossed the trading desk yesterday, lower than the norm. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to identify substantial volume growth or dissemination by institutional investors.

While higher trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks expresses a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is crucial.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These professional investors have substantial teams of analysts that research thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.

Zacks Investment Research (Monarch Casino & Resort Inc.: NASDAQ) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

Traders are able to make make more useful choices on trades when they track the activity of professional investors.

With that in mind, Zacks Investment Research (Monarch Casino & Resort Inc.: NASDAQ) now has a 50-day MA of $25.33 and 200-day MA of $23.89. It has traded in a 52-week range between $17.29 – 27.16 and today’s last price is 5.91%% lower than the 52 week high of $27.16.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors watch for companies that have been successful at growing their earnings at least 25% or more for a 3 year period.

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