Morgan Stanley Raises Red Rock Resorts (NASDAQ:RRR) Price Target to $53.00

Key Points

• Morgan Stanley has increased its price target for Red Rock Resorts from $49.00 to $53.00, maintaining an "equal weight" rating, indicating a potential downside of 8.42% from the current stock price.
• Other analysts, including Mizuho and JPMorgan Chase & Co., have issued higher price targets of $62.00, suggesting a generally favorable outlook for the stock with most ratings classified as "Moderate Buy".
• Red Rock Resorts reported earnings of $0.95 per share, significantly exceeding estimates, with a revenue of $526.27 million, marking an 8.2% increase year-over-year.

Red Rock Resorts (NASDAQ:RRR - Get Free Report) had its price objective hoisted by stock analysts at Morgan Stanley from $49.00 to $53.00 in a report released on Wednesday,Benzinga reports. The firm currently has an "equal weight" rating on the stock. Morgan Stanley's price target would indicate a potential downside of 8.42% from the company's current price.

Several other research firms have also recently commented on RRR. Mizuho raised their target price on shares of Red Rock Resorts from $59.00 to $62.00 and gave the stock an "outperform" rating in a research note on Thursday, July 31st. JPMorgan Chase & Co. began coverage on shares of Red Rock Resorts in a report on Monday, June 23rd. They issued an "overweight" rating and a $62.00 price target 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 report on Wednesday, July 30th. Citigroup reaffirmed an "outperform" rating on shares of Red Rock Resorts in a research note on Friday, July 18th. Finally, JMP Securities raised their price target on shares of Red Rock Resorts from $57.00 to $64.00 and gave the stock a "market outperform" rating in a research note on Wednesday, July 30th. Four research analysts have rated the stock with a hold rating and eight have given a buy rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $60.73.

Red Rock Resorts Stock Down 0.9%

NASDAQ RRR traded down $0.55 on Wednesday, hitting $57.87. 279,515 shares of the stock were exchanged, compared to its average volume of 713,101. The company has a quick ratio of 0.87, a current ratio of 0.92 and a debt-to-equity ratio of 9.04. Red Rock Resorts has a fifty-two week low of $35.09 and a fifty-two week high of $62.00. The company has a market cap of $6.14 billion, a PE ratio of 19.69, a PEG ratio of 3.51 and a beta of 1.66. The company has a 50-day moving average price of $53.06 and a 200-day moving average price of $48.25.

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, beating the consensus estimate of $0.40 by $0.55. Red Rock Resorts had a net margin of 8.89% and a return on equity of 59.56%. 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 prior year, the business posted $0.59 EPS. The company's revenue for the quarter was up 8.2% on a year-over-year basis. Sell-side analysts anticipate that Red Rock Resorts will post 1.76 EPS for the current fiscal year.

Insiders Place Their Bets

In other Red Rock Resorts news, 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 $18,958,416.41. The trade was a 15.25% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, 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 transaction 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 approximately $15,626,490.72. This represents a 31.81% decrease in their position. The disclosure for this sale can be found here. 53.28% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Red Rock Resorts

Institutional investors have recently bought and sold shares of the stock. Ameritas Advisory Services LLC acquired a new stake in Red Rock Resorts in the second quarter worth about $42,000. Sterling Capital Management LLC lifted its holdings in Red Rock Resorts by 654.7% in the fourth quarter. Sterling Capital Management LLC now owns 883 shares of the company's stock worth $41,000 after purchasing an additional 766 shares during the period. Pandora Wealth Inc. acquired a new stake in Red Rock Resorts in the first quarter worth about $43,000. US Bancorp DE lifted its holdings in Red Rock Resorts by 1,664.4% in the first quarter. US Bancorp DE now owns 1,041 shares of the company's stock worth $45,000 after purchasing an additional 982 shares during the period. Finally, Atlantic Union Bankshares Corp acquired a new stake in Red Rock Resorts in the second quarter worth about $62,000. Institutional investors and hedge funds own 47.84% of the company's stock.

Red Rock Resorts Company 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.

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