Red Rock Resorts (NASDAQ:RRR) Stock Gets Price Target Cut from Wells Fargo & Company

Key Points

• Wells Fargo cut its Red Rock Resorts price target to $65 from $78 but maintained an Overweight rating, implying 33.58% upside from the cited share price.
• Analyst sentiment remains broadly positive: the stock has a Moderate Buy consensus rating and an average price target of $69.59.
• Shares fell 5.3% as quarterly EPS of -$0.17 missed estimates of $0.45, despite revenue of $488.7 million topping forecasts and rising 2.8% year over year.

Red Rock Resorts (NASDAQ:RRR - Get Free Report) had its price target decreased by equities researchers at Wells Fargo & Company from $78.00 to $65.00 in a report released on Thursday, Benzinga reports. The brokerage currently has an "overweight" rating on the stock. Wells Fargo & Company's price target points to a potential upside of 33.58% from the company's current price.

A number of other research analysts also recently commented on RRR. Weiss Ratings reissued a "hold (c+)" rating on shares of Red Rock Resorts in a research report on Tuesday, October 6th. JPMorgan Chase & Co. reduced their price objective on shares of Red Rock Resorts from $71.00 to $64.00 and set an "overweight" rating on the stock in a research note on Wednesday. Stifel Nicolaus set a $74.00 price target on Red Rock Resorts in a report on Wednesday, August 5th. Bank of America lifted their price objective on shares of Red Rock Resorts from $60.00 to $70.00 and gave the stock a "neutral" rating in a report on Monday, July 20th. Finally, Wolfe Research initiated coverage on shares of Red Rock Resorts in a research report on Wednesday, September 2nd. They issued an "outperform" rating and a $73.00 price target on the stock. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Red Rock Resorts presently has an average rating of "Moderate Buy" and an average price target of $69.59.

Red Rock Resorts Trading Down 5.3%

NASDAQ RRR opened at $48.66 on Thursday. Red Rock Resorts has a 12 month low of $47.42 and a 12 month high of $68.99. The stock has a 50-day simple moving average of $51.96 and a 200 day simple moving average of $57.99. The company has a current ratio of 0.68, a quick ratio of 0.63 and a debt-to-equity ratio of 12.33. The company has a market capitalization of $5.11 billion, a PE ratio of 24.58, a P/E/G ratio of 4.72 and a beta of 1.42.

Red Rock Resorts (NASDAQ:RRR - Get Free Report) last issued its earnings results on Tuesday, November 3rd. The company reported ($0.17) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.45 by ($0.62). The company had revenue of $488.70 million for the quarter, compared to the consensus estimate of $478.13 million. Red Rock Resorts had a return on equity of 44.10% and a net margin of 5.79%. Red Rock Resorts's quarterly revenue was up 2.8% on a year-over-year basis. During the same quarter last year, the business posted $0.68 EPS. Research analysts forecast that Red Rock Resorts will post 1.54 EPS for the current year.

Insider Buying and Selling at Red Rock Resorts

In related news, President Scott Kreeger sold 31,159 shares of the company'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 sale, the president directly owned 203,881 shares of the company's stock, valued at $12,595,768.18. This represents a 13.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 54.34% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Red Rock Resorts

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Diamond Hill Capital Management LLC Investment Advisor purchased a new position in shares of Red Rock Resorts in the second quarter worth approximately $120,743,000. Renaissance Technologies LLC increased its holdings in Red Rock Resorts by 204.7% during the first quarter. Renaissance Technologies LLC now owns 300,400 shares of the company's stock valued at $16,029,000 after buying an additional 201,800 shares during the last quarter. Principal Financial Group Inc. raised its position in Red Rock Resorts by 24.1% in the first quarter. Principal Financial Group Inc. now owns 287,633 shares of the company's stock worth $15,348,000 after acquiring an additional 55,845 shares during the period. Hsbc Holdings PLC raised its position in Red Rock Resorts by 168.3% in the first quarter. Hsbc Holdings PLC now owns 86,798 shares of the company's stock worth $4,642,000 after acquiring an additional 54,443 shares during the period. Finally, Orvieto Partners L.P. purchased a new position in shares of Red Rock Resorts during the 1st quarter worth $2,668,000. Institutional investors own 47.84% of the company's stock.

More Red Rock Resorts News

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

• Positive Sentiment: Red Rock plans to invest $430 million in Durango North, targeting a Q3 2027 opening and a 20% return on investment. The project offers a potential longer-term growth driver, though it requires substantial upfront spending. Article
• Positive Sentiment: The company declared a quarterly dividend of $0.26 per share, equivalent to $1.04 annually and a roughly 2.1% yield at the cited share price. Dividend announcement
• Neutral Sentiment: Analysts continued to express support after the post-earnings decline. JPMorgan cut its price target to $64 but kept an Overweight rating; Citizens JMP lowered its target slightly to $70 while maintaining Market Outperform. The ratings remain favorable, but the target reductions suggest more cautious expectations. Analyst support article
• Negative Sentiment: Q3 revenue rose 2.8% year over year to $488.7 million and exceeded estimates, but earnings per share fell short of consensus and were down from $0.68 a year earlier. The earnings miss appears to be the key driver of the post-results selling. Q3 results

Red Rock Resorts Company Profile

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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