Red Rock Resorts (NASDAQ:RRR) Shares Gap Down Following Analyst Downgrade

Red Rock Resorts, Inc. (NASDAQ:RRR)’s share price gapped down prior to trading on Wednesday after Truist Financial lowered their price target on the stock from $64.00 to $63.00. The stock had previously closed at $60.71, but opened at $57.00. Truist Financial currently has a hold rating on the stock. Red Rock Resorts shares last traded at $57.38, with a volume of 47,886 shares.

A number of other research analysts also recently issued reports on RRR. Bank of America raised Red Rock Resorts from an “underperform” rating to a “neutral” rating and lowered their price target for the company from $57.00 to $55.00 in a report on Monday, May 13th. JMP Securities lowered their price target on Red Rock Resorts from $66.00 to $65.00 and set a “market outperform” rating on the stock in a report on Wednesday, May 8th. Barclays lowered their price target on Red Rock Resorts from $64.00 to $63.00 and set an “overweight” rating on the stock in a report on Wednesday, May 8th. Mizuho lowered their price target on Red Rock Resorts from $69.00 to $66.00 and set a “buy” rating on the stock in a report on Wednesday, May 8th. Finally, JPMorgan Chase & Co. increased their target price on Red Rock Resorts from $63.00 to $69.00 and gave the company an “overweight” rating in a report on Monday, April 1st. Six investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. Based on data from MarketBeat.com, Red Rock Resorts has a consensus rating of “Moderate Buy” and an average price target of $63.33.

Insiders Place Their Bets

In other Red Rock Resorts news, CEO Frank J. Fertitta III sold 800,000 shares of the company’s stock in a transaction dated Monday, May 13th. The stock was sold at an average price of $50.39, for a total value of $40,312,000.00. Following the completion of the sale, the chief executive officer now owns 45,847,301 shares in the company, valued at $2,310,245,497.39. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Company insiders own 53.28% of the company’s stock.

Institutional Trading of Red Rock Resorts

Several institutional investors have recently made changes to their positions in the business. Edgestream Partners L.P. bought a new position in Red Rock Resorts during the first quarter valued at approximately $1,238,000. Charles Schwab Investment Management Inc. boosted its stake in Red Rock Resorts by 3.0% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 540,756 shares of the company’s stock valued at $28,839,000 after buying an additional 15,629 shares during the last quarter. BNP Paribas Financial Markets boosted its stake in Red Rock Resorts by 35.5% during the first quarter. BNP Paribas Financial Markets now owns 32,080 shares of the company’s stock valued at $1,919,000 after buying an additional 8,402 shares during the last quarter. Natixis Advisors L.P. bought a new position in Red Rock Resorts during the fourth quarter valued at approximately $6,595,000. Finally, Capital World Investors bought a new position in Red Rock Resorts during the fourth quarter valued at approximately $24,897,000. Hedge funds and other institutional investors own 47.84% of the company’s stock.

Red Rock Resorts Stock Performance

The business has a 50 day moving average of $53.59 and a 200 day moving average of $55.24. The company has a market capitalization of $5.97 billion, a P/E ratio of 19.61, a price-to-earnings-growth ratio of 2.89 and a beta of 2.04. The company has a quick ratio of 0.85, a current ratio of 0.90 and a debt-to-equity ratio of 18.49.

Red Rock Resorts (NASDAQ:RRR) last posted its quarterly earnings data on Tuesday, July 23rd. The company reported $0.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.43 by $0.16. The business had revenue of $486.40 million during the quarter, compared to analyst estimates of $475.80 million. Red Rock Resorts had a return on equity of 87.05% and a net margin of 9.21%. The company’s revenue for the quarter was up 16.9% on a year-over-year basis. During the same period last year, the company earned $0.65 EPS. On average, sell-side analysts predict that Red Rock Resorts, Inc. will post 1.83 earnings per share for the current year.

Red Rock Resorts Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 30th. Stockholders of record on Monday, September 16th will be paid a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 1.77%. The ex-dividend date is Monday, September 16th. Red Rock Resorts’s payout ratio is 34.72%.

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.