Wells Fargo & Company Lowers Red Rock Resorts (NASDAQ:RRR) Price Target to $55.00

Key Points

• Wells Fargo & Company cut its price target for Red Rock Resorts to $55 (from $59) and kept an "equal weight" rating, implying only about a 4.3% upside from recent levels.
• Red Rock Resorts beat EPS expectations last quarter with $0.73 vs. $0.56 consensus and revenue roughly in line at $507.3M, but the stock traded down to $52.71 on the day.
• Brokerage views are mixed-to-positive overall: analysts show 11 Buys and 4 Holds with an average target of $69.71, well above Wells Fargo's revised target, indicating divergent analyst outlooks.

Red Rock Resorts (NASDAQ:RRR - Get Free Report) had its target price dropped by stock analysts at Wells Fargo & Company from $59.00 to $55.00 in a note issued to investors on Thursday,Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Wells Fargo & Company's price target indicates a potential upside of 4.34% from the company's current price.

Other equities analysts also recently issued reports about the stock. Jefferies Financial Group decreased their price target on shares of 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. Weiss Ratings cut shares of Red Rock Resorts from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, April 17th. Barclays raised their price objective on shares of Red Rock Resorts from $65.00 to $69.00 and gave the stock an "overweight" rating in a research report on Friday, January 16th. JPMorgan Chase & Co. cut their price objective on shares of Red Rock Resorts from $76.00 to $73.00 and set an "overweight" rating for the company in a research report on Thursday, April 16th. Finally, Susquehanna restated a "positive" rating and set a $70.00 price objective on shares of Red Rock Resorts in a research report on Thursday. Eleven investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $69.71.

Red Rock Resorts Price Performance

RRR traded down $3.35 during midday trading on Thursday, hitting $52.71. 356,956 shares of the company traded hands, compared to its average volume of 807,926. 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 company has a market capitalization of $5.54 billion, a price-to-earnings ratio of 16.84, a PEG ratio of 2.42 and a beta of 1.48. Red Rock Resorts has a 52-week low of $41.90 and a 52-week high of $68.99. The business has a 50 day simple moving average of $57.67 and a two-hundred day simple moving average 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 (EPS) for the quarter, beating the consensus estimate of $0.56 by $0.17. The business had revenue of $507.32 million for the quarter, compared to the consensus estimate of $507.77 million. Red Rock Resorts had a net margin of 9.35% and a return on equity of 58.13%. The company's revenue was up 1.9% compared to the same quarter last year. During the same period last year, the firm posted $0.75 earnings per share. On average, equities analysts forecast that Red Rock Resorts will post 2.12 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in RRR. Salomon & Ludwin LLC purchased a new position in shares of Red Rock Resorts in the fourth quarter valued at approximately $25,000. Kestra Advisory Services LLC purchased a new position in shares of Red Rock Resorts in the fourth quarter valued at approximately $27,000. Rockefeller Capital Management L.P. lifted its stake in Red Rock Resorts by 1,924.0% in the fourth quarter. Rockefeller Capital Management L.P. now owns 506 shares of the company's stock worth $31,000 after acquiring an additional 481 shares during the last quarter. Strs Ohio purchased a new position in Red Rock Resorts in the third quarter worth approximately $37,000. Finally, GAMMA Investing LLC lifted its stake in Red Rock Resorts by 53.8% in the fourth quarter. GAMMA Investing LLC now owns 752 shares of the company's stock worth $47,000 after acquiring an additional 263 shares during the last quarter. Hedge funds and other institutional investors own 47.84% of the company's stock.

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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