Red Rock Resorts (NASDAQ:RRR) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Red Rock Resorts (NASDAQ:RRR) from a "hold" to a "strong sell", signaling increased analyst concern about the stock.
• The company reported Q1 EPS of $0.73, missing consensus by $0.17 while revenue of $507.3M slightly topped expectations, and the stock opened around $53.74.
• Several analysts trimmed price targets in late April, yet MarketBeat's consensus remains a "Moderate Buy" with an average target of $67.67 and a current analyst split of 12 buys, 3 holds and 1 sell.

Red Rock Resorts (NASDAQ:RRR - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report issued on Wednesday,Zacks.com reports.

Other equities analysts have also recently issued reports about the company. Truist Financial reduced their target price on Red Rock Resorts from $70.00 to $68.00 and set a "buy" rating for the company in a research note on Thursday, April 30th. Wells Fargo & Company reduced their target price on Red Rock Resorts from $59.00 to $55.00 and set an "equal weight" rating for the company in a research note on Thursday, April 30th. Jefferies Financial Group reduced their price objective on Red Rock Resorts from $79.00 to $74.00 and set a "buy" rating on the stock in a research note on Monday, April 6th. Citizens Jmp reduced their price objective on Red Rock Resorts from $71.00 to $67.00 and set a "market outperform" rating on the stock in a research note on Thursday, April 30th. Finally, Stifel Nicolaus set a $72.00 price objective on Red Rock Resorts in a research note on Thursday, April 30th. Twelve equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $67.67.

Red Rock Resorts Stock Performance

Red Rock Resorts stock opened at $53.74 on Wednesday. The stock has a market cap of $5.64 billion, a P/E ratio of 17.28, a price-to-earnings-growth ratio of 3.55 and a beta of 1.35. The company has a current ratio of 0.79, a quick ratio of 0.74 and a debt-to-equity ratio of 10.26. The stock has a 50 day moving average of $56.89 and a 200-day moving average of $59.15. Red Rock Resorts has a 52 week low of $43.76 and a 52 week high of $68.99.

Red Rock Resorts (NASDAQ:RRR - Get Free Report) last released its earnings results on Wednesday, April 29th. The company reported $0.73 EPS for the quarter, missing the consensus estimate of $0.90 by ($0.17). The business had revenue of $507.32 million for the quarter, compared to analysts' expectations of $505.63 million. Red Rock Resorts had a net margin of 9.21% and a return on equity of 58.18%. The business's quarterly revenue was up 1.9% compared to the same quarter last year. During the same quarter last year, the company posted $0.75 earnings per share. On average, analysts expect that Red Rock Resorts will post 1.73 EPS for the current fiscal year.

Institutional Investors Weigh In On Red Rock Resorts

Several large investors have recently added to or reduced their stakes in RRR. AQR Capital Management LLC acquired a new stake in Red Rock Resorts in the first quarter worth $308,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in Red Rock Resorts by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 29,272 shares of the company's stock worth $1,270,000 after buying an additional 1,282 shares during the period. Millennium Management LLC increased its position in Red Rock Resorts by 56.2% in the first quarter. Millennium Management LLC now owns 430,150 shares of the company's stock worth $18,656,000 after buying an additional 154,839 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in Red Rock Resorts by 4.6% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 106,275 shares of the company's stock worth $4,609,000 after buying an additional 4,699 shares during the period. Finally, American Century Companies Inc. increased its position in Red Rock Resorts by 9.1% in the second quarter. American Century Companies Inc. now owns 25,884 shares of the company's stock worth $1,347,000 after buying an additional 2,166 shares during the period. 47.84% of the stock is owned by institutional investors and hedge funds.

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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