Long Pond Capital LP Trims Holdings in Red Rock Resorts, Inc. $RRR

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 lessened its stake in Red Rock Resorts, Inc. (NASDAQ:RRR - Free Report) by 17.7% during the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. 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 about 3.4% of Long Pond Capital LP's holdings, making the stock its 12th largest position. Long Pond Capital LP owned approximately 1.14% of Red Rock Resorts worth $52,620,000 as of its most recent filing with the Securities & Exchange Commission.

Other large investors also recently modified their holdings of the company. Pandora Wealth Inc. bought a new position in shares of Red Rock Resorts in the first quarter valued at approximately $43,000. US Bancorp DE lifted its holdings in shares of Red Rock Resorts by 1,664.4% in the first quarter. US Bancorp DE now owns 1,041 shares of the company's stock valued at $45,000 after purchasing 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 valued at approximately $89,000. Tower Research Capital LLC TRC lifted its holdings in shares of Red Rock Resorts by 47.7% in the fourth quarter. Tower Research Capital LLC TRC now owns 2,055 shares of the company's stock valued at $95,000 after purchasing an additional 664 shares in the last quarter. Finally, PNC Financial Services Group Inc. lifted 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.

Analyst Upgrades and Downgrades

RRR has been the topic of a number of recent research reports. Stifel Nicolaus set a $60.00 target price on Red Rock Resorts and gave the company a "hold" rating in a report on Wednesday, July 30th. Morgan Stanley lifted their price target on Red Rock Resorts from $49.00 to $53.00 and gave the stock an "equal weight" rating in a report on Wednesday, August 6th. JMP Securities lifted their price target on Red Rock Resorts from $57.00 to $64.00 and gave the stock a "market outperform" rating in a report on Wednesday, July 30th. Truist Financial upgraded Red Rock Resorts from a "hold" rating to a "buy" rating and lifted their price target for the stock from $45.00 to $67.00 in a report on Wednesday, July 16th. Finally, Barclays lifted their price target on Red Rock Resorts from $62.00 to $65.00 and gave the stock an "overweight" rating in a report on Wednesday, July 30th. Eight analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $60.73.

Insiders Place Their Bets

In other news, CFO Stephen Lawrence Cootey sold 121,400 shares of Red Rock Resorts stock in a transaction on Friday, August 1st. The stock was sold at an average price of $60.04, for a total value of $7,288,856.00. Following the completion of the transaction, the chief financial officer directly owned 260,268 shares in the company, valued at approximately $15,626,490.72. The trade was a 31.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Jeffrey T. Welch sold 56,653 shares of Red Rock Resorts 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 transaction, 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 ownership of the stock. The disclosure for this sale can be found here. Insiders sold 262,703 shares of company stock valued at $15,764,672 over the last ninety days. 53.81% of the stock is currently owned by insiders.

Red Rock Resorts Stock Performance

NASDAQ:RRR traded down $0.01 during trading hours on Thursday, reaching $62.96. The stock had a trading volume of 689,998 shares, compared to its average volume of 903,891. The company has a debt-to-equity ratio of 11.28, a quick ratio of 0.84 and a current ratio of 0.89. The stock has a 50 day simple moving average of $56.67 and a 200 day simple moving average of $49.62. Red Rock Resorts, Inc. has a 12-month low of $35.09 and a 12-month high of $63.60. The stock has a market cap of $6.64 billion, a P/E ratio of 21.41, a price-to-earnings-growth ratio of 2.54 and a beta of 1.66.

Red Rock Resorts (NASDAQ:RRR - Get Free Report) last released 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 the consensus estimate of $485.44 million. During the same period last year, the business posted $0.59 earnings per share. The business's revenue for the quarter was up 8.2% on a year-over-year basis. On average, research analysts forecast that Red Rock Resorts, Inc. will post 1.76 EPS for the current fiscal year.

Red Rock Resorts Announces Dividend

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 dividend on an annualized basis 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 currently 34.01%.

About Red Rock Resorts

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.