Red Rock Resorts (NASDAQ:RRR) Sets New 52-Week Low - Here's Why

Key Points

• Red Rock Resorts shares hit a new 52-week low of $50.05, trading below both their 50-day and 200-day moving averages. The stock has a consensus “Moderate Buy” rating and an average analyst price target of $71.94.
• The company’s latest quarterly results exceeded expectations, with earnings per share of $0.67 versus the $0.51 consensus and revenue of $510.26 million. However, revenue declined 3% year over year and EPS fell from $0.95 in the same quarter last year.
• Red Rock Resorts declared a quarterly dividend of $0.26 per share, equivalent to an annualized $1.04 payout and a 2.1% yield. Company insiders own 54.34% of shares, while the president recently sold 31,159 shares.

Red Rock Resorts, Inc. (NASDAQ:RRR - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Monday . The company traded as low as $50.05 and last traded at $50.0890, with a volume of 89807 shares traded. The stock had previously closed at $50.91.

Analysts Set New Price Targets

Several equities analysts have weighed in on RRR shares. Bank of America raised their target price on Red Rock Resorts from $60.00 to $70.00 and gave the company a "neutral" rating in a report on Monday, July 20th. Jefferies Financial Group reiterated a "buy" rating on shares of Red Rock Resorts in a research note on Thursday, July 2nd. Zacks Research raised Red Rock Resorts from a "strong sell" rating to a "hold" rating in a report on Friday, August 7th. Benchmark reissued a "buy" rating on shares of Red Rock Resorts in a research note on Monday, August 31st. Finally, Capital One Financial upgraded Red Rock Resorts to a "buy" rating in a report on Wednesday, September 9th. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, Red Rock Resorts has a consensus rating of "Moderate Buy" and an average price target of $71.94.

Red Rock Resorts Stock Down 0.9%

The firm has a 50-day moving average of $60.63 and a two-hundred day moving average of $58.84. The firm has a market cap of $5.30 billion, a price-to-earnings ratio of 17.83, a PEG ratio of 4.18 and a beta of 1.31. The company has a current ratio of 0.68, a quick ratio of 0.63 and a debt-to-equity ratio of 12.33.

Red Rock Resorts (NASDAQ:RRR - Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported $0.67 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.51 by $0.16. The firm had revenue of $510.26 million for the quarter, compared to analyst estimates of $500.08 million. Red Rock Resorts had a return on equity of 56.19% and a net margin of 8.43%.The company's revenue was down 3.0% on a year-over-year basis. During the same quarter last year, the firm posted $0.95 EPS. As a group, sell-side analysts predict that Red Rock Resorts, Inc. will post 1.54 earnings per share for the current fiscal year.

Red Rock Resorts Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th will be given a dividend of $0.26 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $1.04 dividend on an annualized basis and a yield of 2.1%. Red Rock Resorts's dividend payout ratio (DPR) is 36.75%.

Insider Buying and Selling

In other Red Rock Resorts news, President Scott Kreeger sold 31,159 shares of the company's stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $61.78, for a total value of $1,925,003.02. Following the completion of the transaction, the president owned 203,881 shares of the company's stock, valued at $12,595,768.18. This represents a 13.26% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 54.34% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of RRR. Valeo Financial Advisors LLC raised its position in Red Rock Resorts by 4.7% in the 2nd quarter. Valeo Financial Advisors LLC now owns 5,201 shares of the company's stock valued at $338,000 after purchasing an additional 234 shares during the last quarter. Baron Wealth Management LLC grew its holdings in shares of Red Rock Resorts by 3.0% during the first quarter. Baron Wealth Management LLC now owns 15,718 shares of the company's stock worth $839,000 after purchasing an additional 452 shares during the last quarter. Rockefeller Capital Management L.P. grew its holdings in shares of Red Rock Resorts by 1,924.0% during the fourth quarter. Rockefeller Capital Management L.P. now owns 506 shares of the company's stock worth $31,000 after purchasing an additional 481 shares during the last quarter. Inceptionr LLC increased its stake in shares of Red Rock Resorts by 3.9% in the first quarter. Inceptionr LLC now owns 13,283 shares of the company's stock valued at $709,000 after buying an additional 499 shares in the last quarter. Finally, Nykredit A S acquired a new stake in shares of Red Rock Resorts in the second quarter valued at $45,000. 47.84% of the stock is owned by institutional investors.

Red Rock Resorts Company Profile

Red Rock Resorts, Inc is a gaming and entertainment company based in Las Vegas, Nevada. Through its subsidiary Station Casinos, the company owns and operates casino resorts, hotel properties, and neighborhood casinos, with a primary focus on the Southern Nevada market.

Its properties offer casino gaming, hotel accommodations, restaurants, bars, entertainment venues, meeting and event spaces, and other amenities. The portfolio includes Red Rock Casino Resort & Spa, Green Valley Ranch Resort Spa and Casino, Durango Casino & Resort, Palace Station, Boulder Station, Sunset Station, Santa Fe Station, and a number of Wildfire casino locations.

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