Red Rock Resorts (NASDAQ:RRR) Upgraded to "Strong-Buy" at Texas Capital

Key Points

• Texas Capital upgraded Red Rock Resorts to “strong buy,” while analysts overall maintain a “Moderate Buy” consensus with an average price target of $71.94.
• Red Rock Resorts beat quarterly expectations, reporting $0.67 in EPS versus the $0.51 estimate and $510.26 million in revenue, although revenue declined 3% year over year.
• The stock opened at $54.69, down 0.6%, with shares trading below their 50-day moving average; company president Scott Kreeger also sold 31,159 shares worth approximately $1.93 million.

Red Rock Resorts (NASDAQ:RRR - Get Free Report) was upgraded by analysts at Texas Capital to a "strong-buy" rating in a report released on Wednesday, Zacks reports.

Several other equities research analysts also recently issued reports on the company. Zacks Research upgraded Red Rock Resorts from a "strong sell" rating to a "hold" rating in a report on Friday, August 7th. 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. Stifel Nicolaus set a $74.00 target price on shares of Red Rock Resorts in a research note on Wednesday, August 5th. Benchmark reiterated a "buy" rating on shares of Red Rock Resorts in a research note on Monday, August 31st. Finally, Wells Fargo & Company increased their target price on shares of Red Rock Resorts from $75.00 to $77.00 and gave the company an "overweight" rating in a report on Wednesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $71.94.

Red Rock Resorts Trading Down 0.6%

RRR opened at $54.69 on Wednesday. Red Rock Resorts has a fifty-two week low of $50.52 and a fifty-two week high of $68.99. The firm has a market capitalization of $5.74 billion, a PE ratio of 19.33, a P/E/G ratio of 4.51 and a beta of 1.31. 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 50-day moving average is $61.96 and its 200 day moving average is $59.17.

Red Rock Resorts (NASDAQ:RRR - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $0.67 EPS for the quarter, topping analysts' consensus estimates of $0.51 by $0.16. Red Rock Resorts had a return on equity of 56.19% and a net margin of 8.43%.The firm had revenue of $510.26 million during the quarter, compared to analyst estimates of $500.08 million. During the same period in the previous year, the company posted $0.95 EPS. The company's revenue for the quarter was down 3.0% on a year-over-year basis. As a group, research analysts predict 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 related news, President Scott Kreeger sold 31,159 shares of the business's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $61.78, for a total value 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 sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 54.34% of the company's stock.

Institutional Trading of Red Rock Resorts

Several hedge funds have recently added to or reduced their stakes in RRR. Bamco Inc. NY grew its holdings in Red Rock Resorts by 2.0% during the fourth quarter. Bamco Inc. NY now owns 12,519,892 shares of the company's stock valued at $775,607,000 after purchasing an additional 250,725 shares during the period. California State Teachers Retirement System lifted its position in shares of Red Rock Resorts by 5,722.9% during the 2nd quarter. California State Teachers Retirement System now owns 3,478,303 shares of the company's stock valued at $226,298,000 after buying an additional 3,418,568 shares during the last quarter. Diamond Hill Capital Management LLC Investment Advisor purchased a new position in shares of Red Rock Resorts during the 2nd quarter valued at $120,743,000. State Street Corp grew its stake in shares of Red Rock Resorts by 62.1% during the 4th quarter. State Street Corp now owns 1,814,812 shares of the company's stock worth $112,428,000 after acquiring an additional 695,575 shares during the period. Finally, Arrowstreet Capital Limited Partnership grew its stake in shares of Red Rock Resorts by 2,248.2% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,354,644 shares of the company's stock worth $82,715,000 after acquiring an additional 1,296,956 shares during the period. Institutional investors own 47.84% of the company's stock.

Red Rock Resorts Company Profile

Red Rock Resorts, Inc is a gaming and entertainment company based in Las Vegas, Nevada. Through its subsidiary Station Casinos, the company owns and operates casino resorts, hotel properties, and neighborhood casinos, with a primary focus on the Southern Nevada market.

Its properties offer casino gaming, hotel accommodations, restaurants, bars, entertainment venues, meeting and event spaces, and other amenities. The portfolio includes Red Rock Casino Resort & Spa, Green Valley Ranch Resort Spa and Casino, Durango Casino & Resort, Palace Station, Boulder Station, Sunset Station, Santa Fe Station, and a number of Wildfire casino locations.

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