Red Rock Resorts (NASDAQ:RRR) Hits New 12-Month High - Should You Buy?

Key Points

• Red Rock Resorts' stock reached a new 52-week high at $62.14, closing at $61.91 with a trading volume of 109,808 shares.
• The company has received positive analyst ratings, with an average target price of $60.73, and several firms, including Mizuho and JPMorgan, have raised their price targets for the stock.
• Red Rock Resorts recently declared a quarterly dividend of $0.25, reflecting an annual yield of 1.6% and a dividend payout ratio of 34.01%.

Red Rock Resorts, Inc. (NASDAQ:RRR - Get Free Report)'s stock price reached a new 52-week high during trading on Monday . The company traded as high as $62.14 and last traded at $61.91, with a volume of 109808 shares traded. The stock had previously closed at $61.44.

Wall Street Analyst Weigh In

RRR has been the topic of a number of research reports. Barclays upped their price target on Red Rock Resorts from $62.00 to $65.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 30th. Macquarie restated an "outperform" rating and set a $58.00 price target on shares of Red Rock Resorts in a research note on Friday, May 2nd. Truist Financial upgraded Red Rock Resorts from a "hold" rating to a "buy" rating and upped their price target for the stock from $45.00 to $67.00 in a research note on Wednesday, July 16th. Morgan Stanley upped their price target on Red Rock Resorts from $49.00 to $53.00 and gave the stock an "equal weight" rating in a research note on Wednesday, August 6th. Finally, JMP Securities upped their price target on 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. Eight analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $60.73.

Red Rock Resorts Stock Performance

The firm has a market capitalization of $6.53 billion, a price-to-earnings ratio of 21.04, a PEG ratio of 2.54 and a beta of 1.66. The company has a debt-to-equity ratio of 11.28, a current ratio of 0.89 and a quick ratio of 0.84. The firm has a 50 day moving average price of $56.90 and a 200-day moving average price of $49.69.

Red Rock Resorts (NASDAQ:RRR - Get Free Report) last announced its quarterly earnings data 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. The business had revenue of $526.27 million for the quarter, compared to analysts' expectations of $485.44 million. Red Rock Resorts had a return on equity of 59.97% and a net margin of 8.89%.The company's revenue for the quarter was up 8.2% compared to the same quarter last year. During the same period last year, the firm earned $0.59 earnings per share. As a group, sell-side analysts expect that Red Rock Resorts, Inc. will post 1.76 earnings per share for the current fiscal year.

Red Rock Resorts Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Monday, September 15th will be paid a $0.25 dividend. The ex-dividend date is Monday, September 15th. This represents a $1.00 dividend on an annualized basis and a yield of 1.6%. Red Rock Resorts's dividend payout ratio (DPR) is currently 34.01%.

Insider Buying and Selling at Red Rock Resorts

In other Red Rock Resorts news, COO Kord Nichols sold 37,075 shares of the firm's stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $61.03, for a total value of $2,262,687.25. Following the sale, the chief operating officer directly owned 87,036 shares in the company, valued at $5,311,807.08. This trade represents a 29.87% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Jeffrey T. Welch sold 56,653 shares of the firm's 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 sale, the executive vice president owned 314,767 shares in the company, valued at approximately $18,958,416.41. This represents a 15.25% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 262,703 shares of company stock worth $15,764,672 over the last ninety days. Corporate insiders own 53.81% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. GAMMA Investing LLC boosted its holdings in shares of Red Rock Resorts by 7,978.4% in the 1st quarter. GAMMA Investing LLC now owns 8,240 shares of the company's stock valued at $357,000 after buying an additional 8,138 shares in the last quarter. Vaughan Nelson Investment Management L.P. increased its position in shares of Red Rock Resorts by 19.2% during the first quarter. Vaughan Nelson Investment Management L.P. now owns 1,602,368 shares of the company's stock worth $69,494,000 after purchasing an additional 258,310 shares in the last quarter. SG Americas Securities LLC acquired a new stake in shares of Red Rock Resorts during the first quarter worth about $750,000. Malaga Cove Capital LLC increased its position in shares of Red Rock Resorts by 85.3% during the first quarter. Malaga Cove Capital LLC now owns 24,783 shares of the company's stock worth $1,075,000 after purchasing an additional 11,406 shares in the last quarter. Finally, KBC Group NV increased its position in shares of Red Rock Resorts by 44.6% during the first quarter. KBC Group NV now owns 2,887 shares of the company's stock worth $125,000 after purchasing an additional 891 shares in the last quarter. Institutional investors and hedge funds 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.