Red Rock Resorts, Inc. (NASDAQ:RRR) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analysts maintain a “Moderate Buy” consensus on Red Rock Resorts, with 16 buy ratings, four holds, and one strong buy among 21 brokerages. The average 12-month price target is $71.94, well above the stock’s reported $50.30 opening price.
• Red Rock Resorts exceeded quarterly expectations, reporting $0.67 in EPS versus the $0.51 consensus and revenue of $510.26 million versus $500.08 million expected. However, revenue declined 3% year over year.
• The company declared a quarterly dividend of $0.26 per share, equivalent to an annualized $1.04 payout and a 2.1% yield. President Scott Kreeger also sold 31,159 shares, reducing his position by 13.26%.

Red Rock Resorts, Inc. (NASDAQ:RRR - Get Free Report) has received an average rating of "Moderate Buy" from the twenty-one brokerages that are covering the stock, MarketBeat.com reports. Four analysts have rated the stock with a hold recommendation, sixteen have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average twelve-month target price among brokerages that have issued ratings on the stock in the last year is $71.9444.

RRR has been the topic of several research analyst reports. Jefferies Financial Group reissued a "buy" rating on shares of Red Rock Resorts in a report on Thursday, July 2nd. Stifel Nicolaus set a $74.00 price target on shares of Red Rock Resorts in a report on Wednesday, August 5th. JPMorgan Chase & Co. boosted their price target on shares of Red Rock Resorts from $66.00 to $72.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 15th. Bank of America increased their price objective on shares of Red Rock Resorts from $60.00 to $70.00 and gave the company a "neutral" rating in a report on Monday, July 20th. Finally, Weiss Ratings upgraded Red Rock Resorts from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, July 10th.

Red Rock Resorts Stock Down 1.2%

Shares of RRR opened at $50.30 on Tuesday. The business's 50 day moving average is $60.35 and its 200 day moving average is $58.77. The company has a market capitalization of $5.28 billion, a PE ratio of 17.77, a price-to-earnings-growth ratio of 4.18 and a beta of 1.31. Red Rock Resorts has a 12-month low of $49.60 and a 12-month high of $68.99. The company has a current ratio of 0.68, a quick ratio of 0.63 and a debt-to-equity ratio of 12.33.

Red Rock Resorts (NASDAQ:RRR - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $0.67 earnings per share for the quarter, topping the consensus estimate 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 business had revenue of $510.26 million during the quarter, compared to the consensus estimate of $500.08 million. During the same period in the prior year, the company posted $0.95 EPS. The firm's revenue for the quarter was down 3.0% compared to the same quarter last year. Research analysts expect that Red Rock Resorts will post 1.54 earnings per share for the current fiscal year.

Red Rock Resorts Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th will be paid a dividend of $0.26 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $1.04 dividend on an annualized basis and a yield of 2.1%. Red Rock Resorts's dividend payout ratio is presently 36.75%.

Insiders Place Their Bets

In other Red Rock Resorts news, President Scott Kreeger sold 31,159 shares of the firm'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 completion of the transaction, the president owned 203,881 shares in the company, valued at $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 available through this link. 54.34% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of RRR. Bamco Inc. NY raised its stake 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 in the last quarter. Diamond Hill Capital Management LLC Investment Advisor bought a new position in shares of Red Rock Resorts during the second quarter valued at approximately $120,743,000. Geode Capital Management LLC increased its stake in Red Rock Resorts by 0.4% in the fourth quarter. Geode Capital Management LLC now owns 1,188,664 shares of the company's stock worth $73,648,000 after purchasing an additional 4,759 shares during the period. Westfield Capital Management Co. LP boosted its position in Red Rock Resorts by 0.9% in the 4th quarter. Westfield Capital Management Co. LP now owns 1,157,653 shares of the company's stock valued at $71,717,000 after buying an additional 10,236 shares during the period. Finally, Vaughan Nelson Investment Management L.P. grew its stake in Red Rock Resorts by 6.6% in the first quarter. Vaughan Nelson Investment Management L.P. now owns 650,943 shares of the company's stock worth $34,734,000 after purchasing an additional 40,295 shares in the last quarter. 47.84% of the stock is owned by hedge funds and other institutional investors.

About Red Rock Resorts

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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