Red Rock Resorts (NASDAQ:RRR) Price Target Cut to $64.00 by Analysts at JPMorgan Chase & Co.

Key Points

• JPMorgan cut Red Rock Resorts’ price target to $64 from $71 but maintained an “overweight” rating, implying about 29.8% upside from the cited share price of $49.32.
• Quarterly revenue increased 2.8% year over year to $488.7 million and beat estimates, but EPS of a $0.17 loss missed the consensus forecast of $0.45 per share.
• Analyst sentiment remains broadly positive: Red Rock has a “Moderate Buy” consensus rating and an average price target of $70.35.

Red Rock Resorts (NASDAQ:RRR - Get Free Report) had its price objective cut by analysts at JPMorgan Chase & Co. from $71.00 to $64.00 in a research note issued on Wednesday, Benzinga reports. The brokerage currently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s price objective suggests a potential upside of 29.78% from the stock's current price.

Other research analysts have also issued reports about the stock. Citizens Jmp decreased their price target on shares of Red Rock Resorts from $71.00 to $70.00 and set a "market outperform" rating on the stock in a research note on Wednesday. Benchmark reiterated a "buy" rating on shares of Red Rock Resorts in a research note on Monday, August 31st. Morgan Stanley reduced their target price on Red Rock Resorts from $61.00 to $59.00 and set an "equal weight" rating for the company in a report on Monday, October 19th. Stifel Nicolaus set a $74.00 target price on Red Rock Resorts in a research report on Wednesday, August 5th. Finally, Bank of America lifted their price target on Red Rock Resorts from $60.00 to $70.00 and gave the stock a "neutral" rating in a research note on Monday, July 20th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat, Red Rock Resorts currently has a consensus rating of "Moderate Buy" and an average price target of $70.35.

Red Rock Resorts Price Performance

NASDAQ RRR traded down $2.07 on Wednesday, hitting $49.32. The company had a trading volume of 1,123,212 shares, compared to its average volume of 849,951. The company has a debt-to-equity ratio of 12.33, a current ratio of 0.68 and a quick ratio of 0.63. The company's fifty day moving average price is $52.18 and its 200-day moving average price is $58.06. The company has a market capitalization of $5.18 billion, a PE ratio of 17.35, a PEG ratio of 4.25 and a beta of 1.42. Red Rock Resorts has a 12-month low of $47.42 and a 12-month high of $68.99.

Red Rock Resorts (NASDAQ:RRR - Get Free Report) last posted its quarterly earnings data on Tuesday, November 3rd. The company reported ($0.17) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.45 by ($0.62). The company had revenue of $488.70 million for the quarter, compared to analysts' expectations of $478.13 million. Red Rock Resorts had a net margin of 8.43% and a return on equity of 56.19%. The business's revenue for the quarter was up 2.8% on a year-over-year basis. During the same period in the previous year, the business earned $0.68 earnings per share. As a group, analysts predict that Red Rock Resorts will post 1.54 earnings per share for the current year.

Insider Transactions at Red Rock Resorts

In other Red Rock Resorts news, President Scott Kreeger sold 31,159 shares of the firm's stock in a transaction on Friday, August 7th. The stock was sold at an average price of $61.78, for a total value of $1,925,003.02. Following the completion of the sale, the president directly owned 203,881 shares of the company's stock, valued at $12,595,768.18. This trade represents a 13.26% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 54.34% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Red Rock Resorts

A number of hedge funds have recently modified their holdings of RRR. Rockefeller Capital Management L.P. raised its position in Red Rock Resorts by 1,924.0% in the fourth quarter. Rockefeller Capital Management L.P. now owns 506 shares of the company's stock valued at $31,000 after purchasing an additional 481 shares during the period. Fortitude Family Office LLC grew its holdings in shares of Red Rock Resorts by 4,566.7% during the 3rd quarter. Fortitude Family Office LLC now owns 560 shares of the company's stock worth $28,000 after purchasing an additional 548 shares during the period. Nykredit A S purchased a new position in shares of Red Rock Resorts during the 2nd quarter worth $45,000. Public Employees Retirement System of Ohio acquired a new stake in shares of Red Rock Resorts during the 2nd quarter worth about $47,000. Finally, Ameritas Advisory Services LLC acquired a new stake in shares of Red Rock Resorts during the 2nd quarter worth about $52,000. Hedge funds and other institutional investors own 47.84% of the company's stock.

Red Rock Resorts News Summary

Here are the key news stories impacting Red Rock Resorts this week:

• Positive Sentiment: Red Rock Resorts declared a quarterly dividend of $0.26 per share, payable December 31, equivalent to $1.04 annually and a yield of about 2.1%. Dividend announcement
• Positive Sentiment: A Yahoo Finance analysis argued RRR could be undervalued, citing strong Las Vegas revenue and expansion investment; this is an external valuation view, not a company forecast. Valuation analysis
• Neutral Sentiment: Citizens lowered its price target slightly, from $71 to $70, but kept its “market outperform” rating, indicating the analyst remains constructive despite the earnings reaction. Citizens price target update
• Negative Sentiment: Q3 results appear to be the main headwind: revenue rose 2.8% year over year to $488.7 million and topped estimates, but earnings missed analyst expectations and were well below the $0.68 per share reported a year earlier. The market’s focus on the earnings shortfall likely outweighs the modest revenue beat. Third-quarter results Earnings estimate comparison

About Red Rock Resorts

Red Rock Resorts, Inc is a gaming, entertainment and hospitality company based in Las Vegas, Nevada. Through its principal operating subsidiary, Station Casinos, the company develops, owns and operates casino resorts and other gaming properties, primarily serving the Las Vegas locals market.

Its portfolio includes destination-style properties such as Red Rock Casino Resort & Spa, Green Valley Ranch Resort Spa and Casino, and Durango Casino & Resort, along with neighborhood casinos including Palace Station, Boulder Station, Santa Fe Station and several Wildfire locations.

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