JMP Securities Forecasts Strong Price Appreciation for Red Rock Resorts (NASDAQ:RRR) Stock

Key Points

• JMP Securities has raised the price target for Red Rock Resorts from $64.00 to $65.00, suggesting a potential upside of 6.26% from the current stock price.
• Several brokerages have upgraded their ratings and price targets for Red Rock Resorts, with Truist Financial raising it to $67.00, indicating strong market confidence.
• Red Rock Resorts reported quarterly earnings of $0.95 per share, significantly exceeding analyst expectations, with revenues up 8.2% year-over-year.

Red Rock Resorts (NASDAQ:RRR - Free Report) had its price objective upped by JMP Securities from $64.00 to $65.00 in a research report report published on Tuesday,Benzinga reports. JMP Securities currently has a market outperform rating on the stock.

Other equities analysts have also recently issued reports about the stock. Barclays lifted their price objective on shares of Red Rock Resorts from $62.00 to $65.00 and gave the stock an "overweight" 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. JPMorgan Chase & Co. assumed coverage on shares of Red Rock Resorts in a research report on Monday, June 23rd. They set an "overweight" rating and a $62.00 price objective for the company. Stifel Nicolaus set a $60.00 target price on shares of Red Rock Resorts and gave the company a "hold" rating in a research report on Wednesday, July 30th. Finally, Citigroup reissued an "outperform" rating on shares of Red Rock Resorts in a research report on Friday, July 18th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $60.82.

Red Rock Resorts Stock Down 0.4%

Shares of NASDAQ:RRR traded down $0.23 during midday trading on Tuesday, hitting $60.76. The stock had a trading volume of 704,286 shares, compared to its average volume of 577,728. The company has a quick ratio of 0.84, a current ratio of 0.89 and a debt-to-equity ratio of 11.28. The business's 50-day simple moving average is $59.17 and its 200-day simple moving average is $50.75. Red Rock Resorts has a 12 month low of $35.09 and a 12 month high of $63.60. The company has a market cap of $6.41 billion, a P/E ratio of 20.67, a PEG ratio of 2.46 and a beta of 1.46.

Red Rock Resorts (NASDAQ:RRR - Get Free Report) last released its quarterly earnings data on Tuesday, July 29th. The company reported $0.95 EPS for the quarter, topping analysts' consensus estimates of $0.40 by $0.55. Red Rock Resorts had a net margin of 8.89% and a return on equity of 59.97%. The firm had revenue of $526.27 million during the quarter, compared to analysts' expectations of $485.44 million. During the same period in the previous year, the business posted $0.59 earnings per share. The company's revenue for the quarter was up 8.2% compared to the same quarter last year. On average, sell-side analysts forecast that Red Rock Resorts will post 1.76 earnings per share for the current fiscal year.

Red Rock Resorts Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Monday, September 15th will be paid a $0.25 dividend. 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 is currently 34.01%.

Insider Activity

In other news, COO Kord Nichols sold 42,325 shares of the company's stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $58.61, for a total value of $2,480,668.25. Following the completion of the transaction, the chief operating officer owned 129,361 shares of the company's stock, valued at $7,581,848.21. This represents a 24.65% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CFO Stephen Lawrence Cootey sold 121,400 shares of the company'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 value of $7,288,856.00. Following the completion of the transaction, the chief financial officer directly owned 260,268 shares of the company's stock, valued at $15,626,490.72. This 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 quarter. 53.81% of the stock is owned by company insiders.

Institutional Trading of Red Rock Resorts

Several institutional investors have recently added to or reduced their stakes in RRR. Bamco Inc. NY boosted its holdings in Red Rock Resorts by 5.7% in the second quarter. Bamco Inc. NY now owns 12,269,004 shares of the company's stock valued at $638,356,000 after acquiring an additional 666,593 shares during the last quarter. Eminence Capital LP boosted its holdings in shares of Red Rock Resorts by 23.4% during the 2nd quarter. Eminence Capital LP now owns 3,059,372 shares of the company's stock worth $159,179,000 after buying an additional 581,061 shares in the last quarter. Balyasny Asset Management L.P. boosted its holdings 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 buying an additional 277,426 shares in the last quarter. Vaughan Nelson Investment Management L.P. boosted its holdings in shares of 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 worth $69,494,000 after buying an additional 258,310 shares in the last quarter. Finally, Nuveen LLC bought a new position in shares of Red Rock Resorts during the 1st quarter worth approximately $11,025,000. 47.84% of the stock is currently owned by institutional investors.

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.