Red Rock Resorts, Inc. (NASDAQ:RRR) to Issue Quarterly Dividend of $0.26

Key Points

• $0.26 quarterly dividend declared (record date June 15, payable June 30), equal to an annualized $1.04 and a ~2.0% yield, with a payout ratio around 58.8% indicating the dividend is covered by earnings.
• The company reported an EPS beat — $0.73 vs $0.56 expected — on roughly flat revenue of $507.3M, but the stock fell about 7.8% to $51.71 following the report.
• Analyst sentiment is mixed but leans positive: MarketBeat shows a "Moderate Buy" consensus with a $69.21 average price target, while several firms have recently adjusted ratings and targets.

Red Rock Resorts, Inc. (NASDAQ:RRR - Get Free Report) declared a quarterly dividend on Wednesday, April 29th. Investors of record on Monday, June 15th will be paid a dividend of 0.26 per share on Tuesday, June 30th. This represents a c) annualized dividend and a yield of 2.0%. The ex-dividend date is Monday, June 15th.

Red Rock Resorts has raised its dividend by an average of 0.8%annually over the last three years. Red Rock Resorts has a payout ratio of 58.8% indicating that its dividend is sufficiently covered by earnings. Analysts expect Red Rock Resorts to earn $2.40 per share next year, which means the company should continue to be able to cover its $1.04 annual dividend with an expected future payout ratio of 43.3%.

Red Rock Resorts Stock Down 7.8%

NASDAQ:RRR traded down $4.35 during mid-day trading on Thursday, hitting $51.71. 459,567 shares of the company's stock traded hands, compared to its average volume of 810,283. The company has a fifty day moving average of $57.67 and a 200 day moving average of $59.26. Red Rock Resorts has a twelve month low of $41.90 and a twelve month high of $68.99. The company has a market capitalization of $5.43 billion, a P/E ratio of 16.61, a P/E/G ratio of 2.42 and a beta of 1.48. The company has a debt-to-equity ratio of 10.26, a quick ratio of 0.74 and a current ratio of 0.79.

Red Rock Resorts (NASDAQ:RRR - Get Free Report) last announced its earnings results on Wednesday, April 29th. The company reported $0.73 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.56 by $0.17. Red Rock Resorts had a return on equity of 58.13% and a net margin of 9.35%.The company had revenue of $507.32 million for the quarter, compared to analyst estimates of $507.77 million. During the same period in the prior year, the company posted $0.75 EPS. The firm's quarterly revenue was up 1.9% compared to the same quarter last year. On average, analysts forecast that Red Rock Resorts will post 2.12 EPS for the current year.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on RRR shares. Wells Fargo & Company reduced their target price on Red Rock Resorts from $59.00 to $55.00 and set an "equal weight" rating on the stock in a research report on Thursday. Weiss Ratings lowered Red Rock Resorts from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, April 17th. Susquehanna reissued a "positive" rating and issued a $70.00 price objective on shares of Red Rock Resorts in a report on Thursday. Truist Financial cut their price objective on Red Rock Resorts from $70.00 to $68.00 and set a "buy" rating on the stock in a report on Thursday. Finally, Morgan Stanley increased their price objective on Red Rock Resorts from $62.00 to $63.00 and gave the company an "equal weight" rating in a report on Wednesday, April 8th. Twelve research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, Red Rock Resorts has an average rating of "Moderate Buy" and a consensus price target of $69.21.

Red Rock Resorts Company Profile

Red Rock Resorts, Inc NASDAQ: RRR is a publicly traded gaming and hospitality company headquartered in Summerlin, Nevada. The company owns and operates a diversified portfolio of full-service casino resorts and neighborhood gaming properties in the Las Vegas valley. Its core business activities include resort hotel accommodations, casino gaming, food and beverage operations, entertainment and convention services designed to meet the needs of both leisure and business travelers.

The company's flagship resort, Red Rock Casino Resort & Spa, features a full range of table games, slot machines, a luxury spa, convention space, multiple signature restaurants and live entertainment venues.

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