Red Rock Resorts, Inc. $RRR Stake Cut by Long Pond Capital LP

Key Points

• Long Pond Capital LP has reduced its stake in Red Rock Resorts by 17.7%, selling 260,862 shares, which now makes up approximately 1.14% of their holdings valued at $52.62 million.
• Red Rock Resorts reported a strong quarterly earnings result with earnings per share of $0.95, significantly surpassing analysts' expectations of $0.40, along with a revenue of $526.27 million.
• The stock has an average analyst rating of Moderate Buy with a consensus price target of $60.73, reflecting positive sentiment among market analysts.

Long Pond Capital LP cut its holdings in shares of Red Rock Resorts, Inc. (NASDAQ:RRR - Free Report) by 17.7% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,213,291 shares of the company's stock after selling 260,862 shares during the quarter. Red Rock Resorts makes up 3.4% of Long Pond Capital LP's portfolio, making the stock its 12th largest position. Long Pond Capital LP owned about 1.14% of Red Rock Resorts worth $52,620,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. Bamco Inc. NY lifted its position in Red Rock Resorts by 6.9% during the 4th quarter. Bamco Inc. NY now owns 11,356,201 shares of the company's stock worth $525,111,000 after buying an additional 732,917 shares in the last quarter. Eminence Capital LP raised its holdings in shares of Red Rock Resorts by 36.1% in the 4th quarter. Eminence Capital LP now owns 2,056,588 shares of the company's stock valued at $95,097,000 after purchasing an additional 546,047 shares during the period. Vaughan Nelson Investment Management L.P. raised its holdings in shares of Red Rock Resorts by 19.2% in the 1st quarter. Vaughan Nelson Investment Management L.P. now owns 1,602,368 shares of the company's stock valued at $69,494,000 after purchasing an additional 258,310 shares during the period. Dimensional Fund Advisors LP raised its holdings in shares of Red Rock Resorts by 2.0% in the 4th quarter. Dimensional Fund Advisors LP now owns 500,365 shares of the company's stock valued at $23,138,000 after purchasing an additional 9,918 shares during the period. Finally, Comerica Bank raised its holdings in shares of Red Rock Resorts by 4.6% in the 1st quarter. Comerica Bank now owns 377,976 shares of the company's stock valued at $16,393,000 after purchasing an additional 16,496 shares during the period. 47.84% of the stock is owned by institutional investors.

Red Rock Resorts Trading Down 1.7%

Shares of NASDAQ RRR traded down $1.09 on Friday, reaching $61.87. 617,190 shares of the company traded hands, compared to its average volume of 834,449. The company has a current ratio of 0.89, a quick ratio of 0.84 and a debt-to-equity ratio of 11.28. Red Rock Resorts, Inc. has a fifty-two week low of $35.09 and a fifty-two week high of $63.60. The stock has a market capitalization of $6.53 billion, a PE ratio of 21.04, a P/E/G ratio of 2.54 and a beta of 1.66. The company has a 50 day moving average of $56.90 and a 200 day moving average of $49.69.

Red Rock Resorts (NASDAQ:RRR - Get Free Report) last issued its earnings results on Tuesday, July 29th. The company reported $0.95 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 business had revenue of $526.27 million during the quarter, compared to analysts' expectations of $485.44 million. During the same quarter in the previous year, the business earned $0.59 EPS. The company's revenue for the quarter was up 8.2% on a year-over-year basis. On average, equities research analysts forecast that Red Rock Resorts, Inc. will post 1.76 earnings per share for the current fiscal year.

Red Rock Resorts Announces Dividend

The firm 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 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date of this dividend is Monday, September 15th. Red Rock Resorts's dividend payout ratio is presently 34.01%.

Insider Activity at Red Rock Resorts

In other news, COO Kord Nichols sold 37,075 shares of the stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $61.03, for a total value of $2,262,687.25. Following the completion of the transaction, the chief operating officer owned 87,036 shares of the company's stock, valued at approximately $5,311,807.08. This represents a 29.87% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, EVP Jeffrey T. Welch sold 56,653 shares of the company's stock in a transaction on Friday, August 1st. The shares were 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 owned 314,767 shares of the company's stock, valued at approximately $18,958,416.41. This trade represents a 15.25% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 262,703 shares of company stock valued at $15,764,672. Corporate insiders own 53.81% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the stock. Mizuho upped their target price on shares of Red Rock Resorts from $59.00 to $62.00 and gave the company an "outperform" rating in a report on Thursday, July 31st. Macquarie reiterated an "outperform" rating and issued a $58.00 price target on shares of Red Rock Resorts in a research note on Friday, May 2nd. Stifel Nicolaus set a $60.00 price target on shares of Red Rock Resorts and gave the company a "hold" rating in a research note on Wednesday, July 30th. JMP Securities upped their price target on shares of 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. Finally, Citigroup reaffirmed an "outperform" rating on shares of Red Rock Resorts in a report on Friday, July 18th. Eight equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, Red Rock Resorts currently 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.