Charles Schwab Investment Management Inc. Decreases Stock Position in Red Rock Resorts, Inc. $RRR

Key Points

• Charles Schwab Investment Management Inc. decreased its stake in Red Rock Resorts by 4.1% during the first quarter, selling 25,402 shares and now owning 595,749 shares valued at approximately $25.8 million.
• Institutional investors collectively hold 47.84% of Red Rock Resorts' stock, with new investments and significant increases in holdings from companies like Sterling Capital Management and US Bancorp DE.
• Red Rock Resorts recently reported $0.95 earnings per share for the last quarter, surpassing expectations significantly, and also announced a quarterly dividend of $0.25, which reflects a 1.7% dividend yield.

Charles Schwab Investment Management Inc. reduced its holdings in Red Rock Resorts, Inc. (NASDAQ:RRR - Free Report) by 4.1% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 595,749 shares of the company's stock after selling 25,402 shares during the quarter. Charles Schwab Investment Management Inc. owned approximately 0.56% of Red Rock Resorts worth $25,838,000 at the end of the most recent reporting period.

Other institutional investors have also recently bought and sold shares of the company. Sterling Capital Management LLC boosted its stake in Red Rock Resorts by 654.7% in the fourth quarter. Sterling Capital Management LLC now owns 883 shares of the company's stock worth $41,000 after purchasing an additional 766 shares in the last quarter. US Bancorp DE increased its position in Red Rock Resorts by 1,664.4% in the 1st quarter. US Bancorp DE now owns 1,041 shares of the company's stock valued at $45,000 after acquiring an additional 982 shares in the last quarter. New Age Alpha Advisors LLC bought a new position in shares of Red Rock Resorts in the first quarter worth about $89,000. Tower Research Capital LLC TRC lifted its position in shares of Red Rock Resorts by 47.7% during the fourth quarter. Tower Research Capital LLC TRC now owns 2,055 shares of the company's stock worth $95,000 after purchasing an additional 664 shares in the last quarter. Finally, PNC Financial Services Group Inc. increased its holdings in shares of Red Rock Resorts by 51.1% in the first quarter. PNC Financial Services Group Inc. now owns 2,854 shares of the company's stock valued at $124,000 after purchasing an additional 965 shares in the last quarter. Institutional investors own 47.84% of the company's stock.

Red Rock Resorts Price Performance

Shares of RRR stock traded up $0.7560 during trading on Monday, hitting $62.1960. The company had a trading volume of 219,674 shares, compared to its average volume of 721,100. The stock has a market capitalization of $6.56 billion, a price-to-earnings ratio of 21.16, a price-to-earnings-growth ratio of 2.48 and a beta of 1.66. The stock's 50-day moving average is $55.70 and its two-hundred day moving average is $49.26. The company has a quick ratio of 0.84, a current ratio of 0.89 and a debt-to-equity ratio of 11.28. Red Rock Resorts, Inc. has a 52 week low of $35.09 and a 52 week high of $62.50.

Red Rock Resorts (NASDAQ:RRR - Get Free Report) last issued its quarterly earnings results on Tuesday, July 29th. The company reported $0.95 earnings per share for the quarter, beating the consensus estimate of $0.40 by $0.55. Red Rock Resorts had a return on equity of 59.97% and a net margin of 8.89%.The firm had revenue of $526.27 million during the quarter, compared to the consensus estimate of $485.44 million. During the same period last year, the company earned $0.59 earnings per share. The company's revenue was up 8.2% on a year-over-year basis. As a group, analysts predict that Red Rock Resorts, Inc. will post 1.76 EPS for the current fiscal year.

Red Rock Resorts Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Monday, September 15th will be given a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend is Monday, September 15th. Red Rock Resorts's dividend payout ratio (DPR) is presently 34.01%.

Insiders Place Their Bets

In related news, COO Kord Nichols sold 42,325 shares of Red Rock Resorts stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $58.61, for a total transaction of $2,480,668.25. Following the sale, the chief operating officer owned 129,361 shares of the company's stock, valued at approximately $7,581,848.21. This trade represents a 24.65% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Jeffrey T. Welch sold 56,653 shares of Red Rock Resorts stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $60.23, for a total value of $3,412,210.19. Following the completion of the sale, the executive vice president directly owned 314,767 shares in the company, valued at approximately $18,958,416.41. The trade was a 15.25% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 225,628 shares of company stock valued at $13,501,984. Insiders own 53.81% of the company's stock.

Analysts Set New Price Targets

A number of analysts have recently commented on the company. Barclays upped their price target on Red Rock Resorts from $62.00 to $65.00 and gave the company an "overweight" rating in a research note on Wednesday, July 30th. JMP Securities boosted their price target on Red Rock Resorts from $57.00 to $64.00 and gave the company a "market outperform" rating in a research note on Wednesday, July 30th. Stifel Nicolaus set a $60.00 price target on Red Rock Resorts and gave the company a "hold" rating in a research note on Wednesday, July 30th. Morgan Stanley lifted their price target on shares of Red Rock Resorts from $49.00 to $53.00 and gave the company an "equal weight" rating in a report on Wednesday, August 6th. Finally, Susquehanna reiterated a "positive" rating and issued a $68.00 target price (up from $65.00) on shares of Red Rock Resorts in a report on Wednesday, July 30th. Eight equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $60.73.

Red Rock Resorts Profile

Red Rock Resorts, Inc, through its interest in Station Casinos LLC, develops and operates casino and entertainment properties in the United States. The company owns and operates gaming and entertainment facilities, including Durango Casino & Resort and smaller casinos in the Las Vegas regional market.