Red Rock Resorts (NASDAQ:RRR) Stock Price Target Lowered at Morgan Stanley

Key Points

• Morgan Stanley lowered Red Rock Resorts’ price target from $61 to $59 while maintaining an “equal weight” rating, implying 19.38% potential upside from the stock’s $49.42 price.
• Analyst sentiment remains generally positive, with the company holding a “Moderate Buy” consensus rating and an average price target of $71.89; ratings include 16 Buys, four Holds, and one Strong Buy.
• Red Rock Resorts beat quarterly earnings expectations, reporting $0.67 in EPS versus the $0.51 consensus and $510.26 million in revenue, though revenue declined 3% year over year. President Scott Kreeger also sold 31,159 shares, while insiders collectively own 54.34% of the company.

Red Rock Resorts (NASDAQ:RRR - Get Free Report) had its price objective lowered by research analysts at Morgan Stanley from $61.00 to $59.00 in a research report issued to clients and investors on Monday, Benzinga reports. The firm presently has an "equal weight" rating on the stock. Morgan Stanley's price objective suggests a potential upside of 19.38% from the stock's current price.

A number of other brokerages have also recently commented on RRR. JPMorgan Chase & Co. lifted their price target on Red Rock Resorts from $66.00 to $72.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 15th. Citigroup reduced their price objective on Red Rock Resorts from $78.00 to $69.00 and set a "buy" rating for the company in a research note on Monday, October 12th. Jefferies Financial Group reaffirmed a "buy" rating on shares of Red Rock Resorts in a report on Thursday, July 2nd. Zacks Research raised Red Rock Resorts from a "strong sell" rating to a "hold" rating in a report on Friday, August 7th. Finally, Texas Capital raised shares of Red Rock Resorts to a "strong-buy" rating in a research report on Wednesday, September 9th. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, Red Rock Resorts presently has a consensus rating of "Moderate Buy" and an average target price of $71.89.

Red Rock Resorts Stock Performance

Shares of NASDAQ RRR traded up $0.14 during midday trading on Monday, reaching $49.42. The company had a trading volume of 144,165 shares, compared to its average volume of 851,364. Red Rock Resorts has a 1 year low of $47.49 and a 1 year high of $68.99. The business's 50-day simple moving average is $54.98 and its 200 day simple moving average is $57.76. 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 market cap of $5.19 billion, a P/E ratio of 17.48, a P/E/G ratio of 4.04 and a beta of 1.40.

Red Rock Resorts (NASDAQ:RRR - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The company reported $0.67 earnings per share for the quarter, beating analysts' consensus estimates of $0.51 by $0.16. Red Rock Resorts had a net margin of 8.43% and a return on equity of 56.19%. The firm had revenue of $510.26 million for the quarter, compared to analyst estimates of $500.08 million. During the same period in the previous year, the company earned $0.95 earnings per share. The business's quarterly revenue was down 3.0% compared to the same quarter last year. On average, analysts forecast that Red Rock Resorts will post 1.54 earnings per share for the current fiscal year.

Insider Buying and Selling at Red Rock Resorts

In other Red Rock Resorts news, President Scott Kreeger sold 31,159 shares of Red Rock Resorts stock in a transaction dated 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 completion of the transaction, the president owned 203,881 shares in the company, valued at approximately $12,595,768.18. This trade represents a 13.26% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 54.34% of the company's stock.

Institutional Trading of Red Rock Resorts

A number of hedge funds have recently added to or reduced their stakes in RRR. Diamond Hill Capital Management LLC Investment Advisor acquired a new stake in Red Rock Resorts in the second quarter valued at approximately $120,743,000. Renaissance Technologies LLC increased its position in shares of Red Rock Resorts by 204.7% in 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 in the last quarter. Principal Financial Group Inc. raised its stake in shares of Red Rock Resorts by 24.1% during the 1st quarter. Principal Financial Group Inc. now owns 287,633 shares of the company's stock worth $15,348,000 after buying an additional 55,845 shares during the period. Hsbc Holdings PLC raised its stake in shares of Red Rock Resorts by 168.3% during the 1st quarter. Hsbc Holdings PLC now owns 86,798 shares of the company's stock worth $4,642,000 after buying 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 valued at approximately $2,668,000. 47.84% of the stock is owned by hedge funds and other institutional investors.

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 owns and operates casino resorts and neighborhood casinos, primarily in the Las Vegas metropolitan area. Its properties offer casino gaming, hotel accommodations, restaurants, bars, entertainment venues, spas and meeting facilities.

The company's portfolio includes Red Rock Casino Resort & Spa, Green Valley Ranch Resort Spa and Casino, Palace Station, Boulder Station, Santa Fe Station, Sunset Station and Durango Casino & Resort, along with casinos operating under the Wildfire brand.

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