Red Rock Resorts (NASDAQ:RRR) Trading Down 7.2% Following Analyst Downgrade

Key Points

• Shares of Red Rock Resorts fell about 7.2% after Benchmark cut its price target from $67 to $63 (still a buy); the stock traded near $52 on Thursday with volume ~43% below average and is trading under its 50- and 200-day moving averages.
• Q1 results were mixed: the company beat EPS at $0.73 (vs. ~$0.56) but revenue was essentially flat at ~$507.3M and slightly missed estimates, and the board approved a $0.26 quarterly dividend (≈2% yield).
• Analyst sentiment remains generally positive—12 Buys vs. 4 Holds—with a consensus rating of "Moderate Buy" and an average price target of $69.21, while institutional investors own about 47.8% of the stock.

Shares of Red Rock Resorts, Inc. (NASDAQ:RRR - Get Free Report) dropped 7.2% during trading on Thursday after Benchmark lowered their price target on the stock from $67.00 to $63.00. Benchmark currently has a buy rating on the stock. Red Rock Resorts traded as low as $52.21 and last traded at $52.00. Approximately 459,567 shares were traded during trading, a decline of 43% from the average daily volume of 810,283 shares. The stock had previously closed at $56.06.

Other analysts have also issued reports about the stock. Stifel Nicolaus upped their price objective on shares of Red Rock Resorts from $71.00 to $75.00 and gave the company a "buy" rating in a research note on Wednesday, February 11th. Citizens Jmp upped their price objective on shares of Red Rock Resorts from $65.00 to $68.00 and gave the company a "market outperform" rating in a research note on Wednesday, January 14th. Jefferies Financial Group dropped their target price on Red Rock Resorts from $79.00 to $74.00 and set a "buy" rating on the stock in a report on Monday, April 6th. Mizuho set a $77.00 target price on Red Rock Resorts in a report on Wednesday, February 11th. Finally, Susquehanna reiterated a "positive" rating and issued a $70.00 target price on shares of Red Rock Resorts in a report on Thursday. Twelve investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $69.21.

More Red Rock Resorts News

Here are the key news stories impacting Red Rock Resorts this week:

• Positive Sentiment: Q1 EPS beat: Red Rock reported $0.73 EPS, well ahead of consensus (roughly $0.54–$0.56), which removes one immediate earnings concern and supports valuation. Red Rock Resorts (RRR) Surpasses Q1 Earnings Estimates
• Positive Sentiment: Dividend declared: the board approved a $0.26 quarterly dividend (annualized yield ~1.9%), payable June 30 with an ex-dividend/record date of June 15 — modest income support for the shares.
• Neutral Sentiment: Earnings call transcript posted: the full Q1 earnings call transcript is available for investors to parse management commentary on demand trends, costs and outlook. Red Rock Resorts, Inc. (RRR) Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Analyst notes and metric reviews: industry write-ups highlight Red Rock’s history of beating estimates but emphasize mixed unit metrics and margin dynamics to watch next quarter. Red Rock Resorts (RRR) Reports Q1 Earnings: What Key Metrics Have to Say
• Negative Sentiment: Revenue essentially flat / slight miss: consolidated net revenue rose only 1.9% year‑over‑year to ~$507.3M and came in marginally below the Street’s revenue estimate, which likely disappointed growth-focused investors. Red Rock Resorts Announces First Quarter 2026 Results
• Negative Sentiment: Y/Y EPS decline and technical weakness: EPS of $0.73 was below last year’s $0.75, and the stock is trading under its 50- and 200-day moving averages with below-average intraday volume — factors that can amplify selling on mixed results.

Hedge Funds Weigh In On Red Rock Resorts

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. MQS Management LLC acquired a new position in Red Rock Resorts during the first quarter valued at approximately $310,000. Louisiana State Employees Retirement System bought a new stake in shares of Red Rock Resorts in the first quarter valued at approximately $1,147,000. Vaughan Nelson Investment Management L.P. boosted its position in shares of Red Rock Resorts by 6.6% in the first quarter. Vaughan Nelson Investment Management L.P. now owns 650,943 shares of the company's stock valued at $34,734,000 after acquiring an additional 40,295 shares during the period. Baron Wealth Management LLC boosted its position in shares of Red Rock Resorts by 3.0% in the first quarter. Baron Wealth Management LLC now owns 15,718 shares of the company's stock valued at $839,000 after acquiring an additional 452 shares during the period. Finally, Hsbc Holdings PLC boosted its position in shares of Red Rock Resorts by 34.8% in the fourth quarter. Hsbc Holdings PLC now owns 32,355 shares of the company's stock valued at $2,007,000 after acquiring an additional 8,357 shares during the period. Institutional investors and hedge funds own 47.84% of the company's stock.

Red Rock Resorts Stock Down 7.8%

The company has a quick ratio of 0.74, a current ratio of 0.79 and a debt-to-equity ratio of 10.26. The company has a market capitalization of $5.43 billion, a P/E ratio of 16.52, a PEG ratio of 2.42 and a beta of 1.48. The firm has a 50-day moving average price of $57.67 and a two-hundred day moving average price of $59.26.

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

Red Rock Resorts Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 15th will be given a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date is Monday, June 15th. Red Rock Resorts's dividend payout ratio (DPR) is presently 33.23%.

About Red Rock Resorts

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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