Red Rock Resorts (NASDAQ:RRR) Stock Price Target Cut by Citigroup

Key Points

• Citigroup cut its Red Rock Resorts price target from $69 to $65, while maintaining a “buy” rating; the new target implies 35.5% upside from the stock’s then-current price.
• Analyst sentiment remained broadly positive: the consensus rating was “Moderate Buy,” with an average price target of $69.35, despite several brokerages lowering targets.
• Red Rock reported quarterly EPS of -$0.17, missing the $0.45 consensus estimate, while revenue rose 2.8% year over year to $488.7 million and beat expectations. Shares fell 1.4% on Thursday.

Red Rock Resorts (NASDAQ:RRR - Get Free Report) had its target price decreased by research analysts at Citigroup from $69.00 to $65.00 in a research note issued on Thursday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. Citigroup's price objective points to a potential upside of 35.53% from the company's current price.

A number of other brokerages also recently weighed in on RRR. Zacks Research raised shares of Red Rock Resorts from a "strong sell" rating to a "hold" rating in a report on Friday, August 7th. The Goldman Sachs Group restated a "buy" rating and set a $65.00 target price on shares of Red Rock Resorts in a report on Tuesday, October 13th. Barclays upped their price objective on Red Rock Resorts from $73.00 to $74.00 and gave the stock an "overweight" rating in a report on Friday, October 9th. Bank of America raised their price objective on shares of Red Rock Resorts from $60.00 to $70.00 and gave the company a "neutral" rating in a research note on Monday, July 20th. Finally, Susquehanna reissued a "positive" rating and set a $64.00 price objective on shares of Red Rock Resorts in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $69.35.

Red Rock Resorts Trading Down 1.4%

Shares of Red Rock Resorts stock traded down $0.70 on Thursday, reaching $47.96. 1,404,305 shares of the company were exchanged, compared to its average volume of 855,985. Red Rock Resorts has a fifty-two week low of $46.53 and a fifty-two week high of $68.99. The firm has a market capitalization of $5.04 billion, a price-to-earnings ratio of 24.22, a price-to-earnings-growth ratio of 4.72 and a beta of 1.42. 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 stock has a fifty day moving average price of $51.96 and a 200-day moving average price of $57.99.

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

Insiders Place Their Bets

In related news, President Scott Kreeger sold 31,159 shares of the business's stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $61.78, for a total transaction of $1,925,003.02. Following the transaction, the president directly owned 203,881 shares of the company's stock, valued at approximately $12,595,768.18. The trade was a 13.26% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 54.34% of the company's stock.

Institutional Trading of Red Rock Resorts

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Fortitude Family Office LLC boosted its holdings in Red Rock Resorts by 4,566.7% in the 3rd quarter. Fortitude Family Office LLC now owns 560 shares of the company's stock valued at $28,000 after purchasing an additional 548 shares during the period. Rockefeller Capital Management L.P. increased its holdings in shares of 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 worth $31,000 after purchasing an additional 481 shares during the period. Nykredit A S bought a new position in shares of Red Rock Resorts in the second quarter worth $45,000. Farther Finance Advisors LLC raised its position in shares of Red Rock Resorts by 252.9% in the third quarter. Farther Finance Advisors LLC now owns 900 shares of the company's stock worth $45,000 after buying an additional 645 shares in the last quarter. Finally, Public Employees Retirement System of Ohio purchased a new stake in shares of Red Rock Resorts in the second quarter worth $47,000. Institutional investors and hedge funds 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 an opening in the third quarter of 2027 and a 20% return on investment. The expansion offers potential future growth, though it requires substantial capital. Durango North investment
• Positive Sentiment: The company declared a quarterly dividend of $0.26 per share, equivalent to $1.04 annually and a roughly 2.1% yield based on the reported figure. Third-quarter results and dividend
• Neutral Sentiment: Wells Fargo lowered its price target from $78 to $65 but kept an “overweight” rating. JPMorgan also cut its target, from $71 to $64, while retaining “overweight”; Citizens trimmed its target from $71 to $70 and maintained “market outperform.” Continued bullish ratings offer some support, but the target reductions reflect more cautious valuation expectations. Wells Fargo analyst update
• Negative Sentiment: Third-quarter earnings fell well short of analyst expectations and were substantially below the year-ago result, prompting a post-earnings slide. Revenue was a brighter spot: it increased 2.8% year over year to $488.7 million and exceeded estimates. The earnings miss appears to be the main near-term driver of investor concern. Third-quarter 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.