Diamond Hill Capital Management Inc. Has $124.10 Million Stock Holdings in Red Rock Resorts, Inc. $RRR

Key Points

• Diamond Hill Capital Management reduced its Red Rock Resorts stake by 18.2% in the fourth quarter, selling 445,515 shares and ending with 2,003,236 shares worth about $124.1 million.
• Analyst sentiment remains mostly positive despite some cuts to price targets: Red Rock Resorts carries a consensus rating of “Moderate Buy” with an average target price of $67.67, though one firm recently downgraded it to sell.
• The company reported quarterly EPS of $0.73, missing estimates, while revenue came in slightly ahead at $507.32 million. Red Rock Resorts also announced a quarterly dividend of $0.26 per share, yielding about 1.9%.

Diamond Hill Capital Management Inc. lessened its holdings in shares of Red Rock Resorts, Inc. (NASDAQ:RRR - Free Report) by 18.2% in the 4th quarter, according to its most recent filing with the SEC. The fund owned 2,003,236 shares of the company's stock after selling 445,515 shares during the period. Diamond Hill Capital Management Inc. owned approximately 1.89% of Red Rock Resorts worth $124,100,000 at the end of the most recent reporting period.

Several other large investors have also made changes to their positions in the business. Vanguard Group Inc. lifted its position in shares of Red Rock Resorts by 6.7% during the 3rd quarter. Vanguard Group Inc. now owns 5,564,421 shares of the company's stock worth $339,764,000 after purchasing an additional 349,822 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its position 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 purchasing an additional 1,296,956 shares during the last quarter. Balyasny Asset Management L.P. lifted its position in shares of Red Rock Resorts by 53.8% during the 2nd quarter. Balyasny Asset Management L.P. now owns 793,371 shares of the company's stock worth $41,279,000 after purchasing an additional 277,426 shares during the last quarter. Dimensional Fund Advisors LP lifted its position in shares of Red Rock Resorts by 0.3% during the 3rd quarter. Dimensional Fund Advisors LP now owns 493,420 shares of the company's stock worth $30,133,000 after purchasing an additional 1,589 shares during the last quarter. Finally, UBS Group AG lifted its position in shares of Red Rock Resorts by 205.1% during the 4th quarter. UBS Group AG now owns 476,311 shares of the company's stock worth $29,507,000 after purchasing an additional 320,175 shares during the last quarter. Institutional investors and hedge funds own 47.84% of the company's stock.

Analyst Ratings Changes

Several equities analysts recently weighed in on the company. JPMorgan Chase & Co. cut their price objective on Red Rock Resorts from $73.00 to $66.00 and set an "overweight" rating for the company in a research report on Thursday, April 30th. Jefferies Financial Group cut their price objective on Red Rock Resorts from $79.00 to $74.00 and set a "buy" rating for the company in a research report on Monday, April 6th. Stifel Nicolaus set a $72.00 price objective on Red Rock Resorts in a research report on Thursday, April 30th. Mizuho set a $77.00 price target on Red Rock Resorts in a research note on Wednesday, February 11th. Finally, Wall Street Zen lowered Red Rock Resorts from a "hold" rating to a "sell" rating in a research note on Saturday, May 16th. Twelve analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $67.67.

Red Rock Resorts Trading Up 1.8%

Shares of RRR opened at $53.37 on Friday. Red Rock Resorts, Inc. has a 12-month low of $44.28 and a 12-month high of $68.99. The company has a quick ratio of 0.76, a current ratio of 0.81 and a debt-to-equity ratio of 14.42. The firm has a market capitalization of $5.61 billion, a price-to-earnings ratio of 17.16, a P/E/G ratio of 3.52 and a beta of 1.35. The stock's 50-day moving average price is $55.37 and its 200 day moving average price is $58.77.

Red Rock Resorts (NASDAQ:RRR - Get Free Report) last issued its quarterly earnings results on Wednesday, April 29th. The company reported $0.73 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.90 by ($0.17). Red Rock Resorts had a net margin of 9.21% and a return on equity of 61.67%. The firm had revenue of $507.32 million for the quarter, compared to the consensus estimate of $505.63 million. During the same quarter in the prior year, the firm earned $0.75 earnings per share. The company's revenue was up 1.9% on a year-over-year basis. As a group, research analysts predict that Red Rock Resorts, Inc. will post 1.73 earnings per share for the current year.

Red Rock Resorts Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 15th will be paid a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a yield of 1.9%. The ex-dividend date is Monday, June 15th. Red Rock Resorts's payout ratio is currently 33.44%.

About Red Rock Resorts

Red Rock Resorts, Inc NASDAQ: RRR is a publicly traded gaming and hospitality company headquartered in Summerlin, Nevada. The company owns and operates a diversified portfolio of full-service casino resorts and neighborhood gaming properties in the Las Vegas valley. Its core business activities include resort hotel accommodations, casino gaming, food and beverage operations, entertainment and convention services designed to meet the needs of both leisure and business travelers.

The company's flagship resort, Red Rock Casino Resort & Spa, features a full range of table games, slot machines, a luxury spa, convention space, multiple signature restaurants and live entertainment venues.

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