Red Rock Resorts (NASDAQ:RRR) Raised to Strong-Buy at Zacks Research

Key Points

• Zacks Research has upgraded Red Rock Resorts' stock rating from "hold" to a "strong-buy", with estimated earnings per share for Q2 2026 at $0.47 and for FY2027 at $1.94.
• The company's recent quarterly earnings surpassed estimates, reporting $0.95 EPS, significantly higher than the consensus estimate of $0.40, with revenues increasing by 8.2% year-over-year.
• Insider trading activity has seen significant share sales, with CFO Stephen Lawrence Cootey selling 121,400 shares, resulting in a 31.81% decrease in his ownership stake.

Zacks Research upgraded shares of Red Rock Resorts (NASDAQ:RRR - Free Report) from a hold rating to a strong-buy rating in a research note issued to investors on Monday morning,Zacks.com reports. Zacks Research also issued estimates for Red Rock Resorts' Q1 2026 earnings at $0.49 EPS, Q2 2026 earnings at $0.47 EPS, Q4 2026 earnings at $0.45 EPS, FY2026 earnings at $1.78 EPS, Q1 2027 earnings at $0.49 EPS, Q2 2027 earnings at $0.48 EPS and FY2027 earnings at $1.94 EPS.

A number of other equities analysts have also recently issued reports on the company. Barclays increased their price target on Red Rock Resorts from $62.00 to $65.00 and gave the stock an "overweight" rating in a report on Wednesday, July 30th. Stifel Nicolaus set a $60.00 target price on Red Rock Resorts and gave the stock a "hold" rating in a research report on Wednesday, July 30th. Citigroup reaffirmed an "outperform" rating on shares of Red Rock Resorts in a research report on Tuesday, September 16th. Truist Financial raised Red Rock Resorts from a "hold" rating to a "buy" rating and upped their target price for the stock from $45.00 to $67.00 in a research report on Wednesday, July 16th. Finally, Mizuho upped their target price on Red Rock Resorts from $59.00 to $62.00 and gave the stock an "outperform" rating in a research report on Thursday, July 31st. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $60.82.

Red Rock Resorts Trading Down 0.4%

Shares of Red Rock Resorts stock traded down $0.23 on Monday, hitting $60.76. The stock had a trading volume of 704,286 shares, compared to its average volume of 577,728. The stock has a 50 day moving average of $59.17 and a 200 day moving average of $50.77. Red Rock Resorts has a twelve month low of $35.09 and a twelve month high of $63.60. The company has a debt-to-equity ratio of 11.28, a quick ratio of 0.84 and a current ratio of 0.89. The firm has a market capitalization of $6.41 billion, a P/E ratio of 20.67, a PEG ratio of 2.45 and a beta of 1.46.

Red Rock Resorts (NASDAQ:RRR - Get Free Report) last announced 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 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 firm's revenue was up 8.2% on a year-over-year basis. During the same period in the prior year, the business posted $0.59 earnings per share. Sell-side analysts expect that Red Rock Resorts will post 1.76 earnings per share for the current fiscal year.

Red Rock Resorts Dividend Announcement

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

Insider Activity

In other news, COO Kord Nichols sold 37,075 shares of the stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $61.03, for a total transaction of $2,262,687.25. Following the completion of the transaction, the chief operating officer owned 87,036 shares in the company, valued at approximately $5,311,807.08. This represents a 29.87% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Stephen Lawrence Cootey sold 121,400 shares of the firm's stock in a transaction dated Friday, August 1st. The stock was sold at an average price of $60.04, for a total value of $7,288,856.00. Following the completion of the transaction, the chief financial officer owned 260,268 shares of the company's stock, valued at approximately $15,626,490.72. This represents a 31.81% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 262,703 shares of company stock valued at $15,764,672 in the last ninety days. 53.81% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Red Rock Resorts

A number of large investors have recently bought and sold shares of RRR. Mitsubishi UFJ Asset Management Co. Ltd. grew its position in shares of Red Rock Resorts by 230.5% in 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. Ameritas Advisory Services LLC purchased a new position in shares of Red Rock Resorts in the second quarter worth $42,000. Pandora Wealth Inc. bought a new position in Red Rock Resorts in the first quarter valued at about $43,000. US Bancorp DE boosted its holdings in shares of Red Rock Resorts by 1,664.4% in the first quarter. US Bancorp DE now owns 1,041 shares of the company's stock worth $45,000 after buying an additional 982 shares during the last quarter. Finally, Atlantic Union Bankshares Corp purchased a new stake in Red Rock Resorts in the second quarter worth about $62,000. 47.84% of the stock is owned by hedge funds and other institutional investors.

Red Rock Resorts Company Profile

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.