Dark Forest Capital Management LP Increases Holdings in Red Rock Resorts, Inc. $RRR

Key Points

• Dark Forest Capital Management LP significantly increased its stake in Red Rock Resorts by 604.9%, owning 121,228 shares valued at approximately $5.26 million after acquiring an additional 104,030 shares.
• Analysts have rated Red Rock Resorts positively, with targets ranging from $60 to $68, reflecting a consensus rating of "Moderate Buy" and an average price target of about $60.73.
• The company announced a quarterly dividend of $0.25, resulting in an annualized dividend yield of 1.6% for shareholders of record on September 15th.

Dark Forest Capital Management LP raised its holdings in shares of Red Rock Resorts, Inc. (NASDAQ:RRR - Free Report) by 604.9% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 121,228 shares of the company's stock after purchasing an additional 104,030 shares during the period. Dark Forest Capital Management LP owned 0.11% of Red Rock Resorts worth $5,258,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also bought and sold shares of RRR. GAMMA Investing LLC lifted its holdings in Red Rock Resorts by 7,978.4% in the first quarter. GAMMA Investing LLC now owns 8,240 shares of the company's stock worth $357,000 after buying an additional 8,138 shares during the period. Vaughan Nelson Investment Management L.P. boosted its position in Red Rock Resorts by 19.2% during 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 acquiring an additional 258,310 shares in the last quarter. SG Americas Securities LLC bought a new stake in Red Rock Resorts during the 1st quarter valued at approximately $750,000. Malaga Cove Capital LLC boosted its position in Red Rock Resorts by 85.3% during the 1st quarter. Malaga Cove Capital LLC now owns 24,783 shares of the company's stock valued at $1,075,000 after acquiring an additional 11,406 shares in the last quarter. Finally, KBC Group NV boosted its position in Red Rock Resorts by 44.6% during the 1st quarter. KBC Group NV now owns 2,887 shares of the company's stock valued at $125,000 after acquiring an additional 891 shares in the last quarter. Institutional investors own 47.84% of the company's stock.

Analysts Set New Price Targets

Several research firms have weighed in on RRR. Mizuho lifted their price objective on Red Rock Resorts from $59.00 to $62.00 and gave the company an "outperform" rating in a research report on Thursday, July 31st. Morgan Stanley lifted their price objective on Red Rock Resorts from $49.00 to $53.00 and gave the company an "equal weight" rating in a research report on Wednesday, August 6th. Stifel Nicolaus set a $60.00 price objective on Red Rock Resorts and gave the company a "hold" rating in a research report on Wednesday, July 30th. Susquehanna reaffirmed a "positive" rating and set a $68.00 price objective (up from $65.00) on shares of Red Rock Resorts in a research report on Wednesday, July 30th. Finally, JMP Securities raised their target price 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. Eight research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $60.73.

Red Rock Resorts Stock Up 0.5%

Shares of NASDAQ RRR traded up $0.29 on Friday, reaching $62.26. 554,115 shares of the company's stock traded hands, compared to its average volume of 744,298. Red Rock Resorts, Inc. has a 12 month low of $35.09 and a 12 month high of $63.60. The business's 50 day simple moving average is $57.96 and its two-hundred day simple moving average is $50.03. The company has a market cap of $6.57 billion, a price-to-earnings ratio of 21.18, a price-to-earnings-growth ratio of 2.50 and a beta of 1.46. 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 (NASDAQ:RRR - Get Free Report) last announced its earnings results on Tuesday, July 29th. The company reported $0.95 earnings per share for the quarter, beating analysts' consensus estimates of $0.40 by $0.55. The business had revenue of $526.27 million during the quarter, compared to the consensus estimate of $485.44 million. Red Rock Resorts had a net margin of 8.89% and a return on equity of 59.97%. The business's revenue for the quarter was up 8.2% on a year-over-year basis. During the same quarter last year, the firm earned $0.59 earnings per share. As a group, equities research analysts forecast that Red Rock Resorts, Inc. will post 1.76 EPS for the current fiscal year.

Red Rock Resorts Dividend Announcement

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

Insider Activity at Red Rock Resorts

In related news, EVP Jeffrey T. Welch sold 56,653 shares of the firm's stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $60.23, for a total transaction 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 $18,958,416.41. This trade represents a 15.25% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Stephen Lawrence Cootey sold 121,400 shares of the firm's stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $60.04, for a total transaction of $7,288,856.00. Following the sale, the chief financial officer directly owned 260,268 shares of the company's stock, valued at $15,626,490.72. This trade represents a 31.81% decrease in their position. 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 90 days. Corporate insiders own 53.81% of the company's stock.

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.