Diamond Hill Capital Management LLC Investment Advisor Purchases New Shares in Red Rock Resorts, Inc. $RRR

Key Points

• Diamond Hill Capital Management purchased 1.86 million Red Rock Resorts shares worth approximately $120.7 million, giving it a 1.77% stake. Institutional investors collectively own 47.84% of the company.
• Red Rock Resorts exceeded quarterly expectations, reporting $0.67 in EPS versus the $0.51 consensus and $510.3 million in revenue, although revenue declined 3% year over year.
• The company declared a quarterly dividend of $0.26 per share, or $1.04 annually, representing a 1.6% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $71.88, compared with a recent share price of $63.66.

Diamond Hill Capital Management LLC Investment Advisor purchased a new position in Red Rock Resorts, Inc. (NASDAQ:RRR - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm purchased 1,855,878 shares of the company's stock, valued at approximately $120,743,000. Diamond Hill Capital Management LLC Investment Advisor owned approximately 1.77% of Red Rock Resorts at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Salomon & Ludwin LLC purchased a new stake in Red Rock Resorts during the fourth quarter valued at about $25,000. Kestra Advisory Services LLC purchased a new position in shares of Red Rock Resorts in the fourth quarter worth approximately $27,000. Rockefeller Capital Management L.P. increased its position in shares of Red Rock Resorts by 1,924.0% in the fourth quarter. Rockefeller Capital Management L.P. now owns 506 shares of the company's stock worth $31,000 after acquiring an additional 481 shares in the last quarter. PNC Financial Services Group Inc. increased its position in shares of Red Rock Resorts by 98.9% in the fourth quarter. PNC Financial Services Group Inc. now owns 1,474 shares of the company's stock worth $91,000 after acquiring an additional 733 shares in the last quarter. Finally, Canada Pension Plan Investment Board acquired a new stake in shares of Red Rock Resorts during the second quarter valued at approximately $94,000. Institutional investors and hedge funds own 47.84% of the company's stock.

Red Rock Resorts Price Performance

NASDAQ RRR opened at $63.66 on Monday. 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 firm has a market capitalization of $6.69 billion, a price-to-earnings ratio of 22.49, a price-to-earnings-growth ratio of 5.22 and a beta of 1.36. The company has a 50 day simple moving average of $63.45 and a 200-day simple moving average of $59.85. Red Rock Resorts, Inc. has a 52-week low of $50.52 and a 52-week high of $68.99.

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

Red Rock Resorts Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders 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 dividend yield of 1.6%. Red Rock Resorts's dividend payout ratio (DPR) is 36.75%.

Insider Activity at Red Rock Resorts

In other news, President Scott Kreeger sold 31,159 shares of the business's stock in a transaction on Friday, August 7th. The shares were sold at an average price of $61.78, for a total transaction of $1,925,003.02. Following the transaction, the president directly owned 203,881 shares in the company, valued at $12,595,768.18. The trade was a 13.26% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 54.34% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

RRR has been the subject of several research analyst reports. Weiss Ratings upgraded shares of Red Rock Resorts from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, July 10th. Barclays lifted their price objective on shares of Red Rock Resorts from $72.00 to $73.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 5th. Citizens Jmp boosted their target price on shares of Red Rock Resorts from $69.00 to $71.00 and gave the company a "market outperform" rating in a research note on Wednesday, August 5th. JPMorgan Chase & Co. increased their target price on Red Rock Resorts from $66.00 to $72.00 and gave the company an "overweight" rating in a report on Wednesday, July 15th. Finally, Bank of America increased their target price on Red Rock Resorts from $60.00 to $70.00 and gave the company a "neutral" rating in a report on Monday, July 20th. Fourteen equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, Red Rock Resorts currently has an average rating of "Moderate Buy" and an average target price of $71.88.

Red Rock Resorts Profile

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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