Red Rock Resorts, Inc. (NASDAQ:RRR) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• Red Rock Resorts, Inc. has received a consensus rating of "Moderate Buy" from analysts, with a price objective averaging $60.82.
• The company's latest earnings report showed an EPS of $0.95, significantly exceeding the consensus estimate of $0.40.
• Red Rock Resorts recently declared a quarterly dividend of $0.25, yielding 1.7%, with a payout ratio of 34.01%.

Shares of Red Rock Resorts, Inc. (NASDAQ:RRR - Get Free Report) have been given an average rating of "Moderate Buy" by the fourteen ratings firms that are covering the stock, MarketBeat reports. Five research analysts have rated the stock with a hold recommendation, eight have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average twelve-month price objective among brokers that have covered the stock in the last year is $60.8182.

Several equities research analysts have commented on RRR shares. Stifel Nicolaus set a $60.00 target price on shares of Red Rock Resorts and gave the company a "hold" rating in a research note on Wednesday, July 30th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Red Rock Resorts in a research report on Saturday, September 27th. Zacks Research raised shares of Red Rock Resorts from a "hold" rating to a "strong-buy" rating in a research note on Monday, September 15th. Barclays raised their price objective on shares of Red Rock Resorts from $62.00 to $65.00 and gave the stock an "overweight" rating in a report on Wednesday, July 30th. Finally, Truist Financial upgraded Red Rock Resorts from a "hold" rating to a "buy" rating and boosted their price target for the company from $45.00 to $67.00 in a report on Wednesday, July 16th.

Red Rock Resorts Price Performance

Shares of RRR stock opened at $59.46 on Tuesday. The firm has a market cap of $6.27 billion, a price-to-earnings ratio of 20.22, a PEG ratio of 2.44 and a beta of 1.47. 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 has a 12 month low of $35.09 and a 12 month high of $63.60. The stock has a 50-day moving average price of $60.54 and a 200 day moving average price of $52.05.

Red Rock Resorts (NASDAQ:RRR - Get Free Report) last issued its earnings results on Tuesday, July 29th. The company reported $0.95 EPS for the quarter, beating the consensus estimate of $0.40 by $0.55. The company had revenue of $526.27 million during the quarter, compared to analysts' expectations 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% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.59 EPS. Research analysts expect that Red Rock Resorts will post 1.76 EPS for the current year.

Red Rock Resorts Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 30th. Shareholders of record on Monday, September 15th were paid a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 1.7%. The ex-dividend date was Monday, September 15th. Red Rock Resorts's payout ratio is presently 34.01%.

Insider Activity

In other news, EVP Jeffrey T. Welch sold 56,653 shares of the stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $60.23, for a total value 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 approximately $18,958,416.41. This represents a 15.25% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, COO Kord Nichols sold 42,325 shares of the stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $58.61, for a total transaction of $2,480,668.25. Following the completion of the sale, the chief operating officer owned 129,361 shares of the company's stock, valued at approximately $7,581,848.21. This represents a 24.65% decrease in their position. The disclosure for this sale can be found here. Insiders sold 262,703 shares of company stock worth $15,764,672 in the last quarter. Corporate insiders own 53.81% of the company's stock.

Institutional Trading of Red Rock Resorts

Several institutional investors and hedge funds have recently bought and sold shares of RRR. Teacher Retirement System of Texas increased its holdings in shares of Red Rock Resorts by 4.6% during the 2nd quarter. Teacher Retirement System of Texas now owns 7,751 shares of the company's stock worth $403,000 after acquiring an additional 340 shares during the last quarter. California State Teachers Retirement System increased its holdings in shares of Red Rock Resorts by 0.7% in the second quarter. California State Teachers Retirement System now owns 46,720 shares of the company's stock valued at $2,431,000 after purchasing an additional 343 shares during the last quarter. Mayfair Advisory Group LLC raised its position in shares of Red Rock Resorts by 8.1% in the first quarter. Mayfair Advisory Group LLC now owns 4,861 shares of the company's stock valued at $211,000 after purchasing an additional 364 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. lifted its stake in shares of Red Rock Resorts by 230.5% during the 2nd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 552 shares of the company's stock worth $29,000 after buying an additional 385 shares during the last quarter. Finally, Osaic Holdings Inc. lifted its stake in shares of Red Rock Resorts by 14.8% during the 2nd quarter. Osaic Holdings Inc. now owns 2,996 shares of the company's stock worth $149,000 after buying an additional 387 shares during the last quarter. Institutional investors own 47.84% 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.

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