Zacks Investment Research upgraded shares of Red Rock Resorts (NASDAQ:RRR) from a sell rating to a hold rating in a research report released on Tuesday, Zacks.com reports.
According to Zacks, “Shares of Red Rock Resorts have underperformed the industry in the past six months. The company reported better-than-expected results in the fourth-quarter 2018. Both earnings and revenues also surpassed the Zacks Consensus Estimate in three of the trailing four quarters. Furthermore, Red Rock Resorts’ Las Vegas operations have been a key growth driver for the company over the past few quarters. This apart, it has been witnessing solid EBITDA growth for the past several quarters, which is impressive. However, the company might fail to finance upcoming projects due to a higher debt burden. Also, competitive operating environment remains a potential headwind. Estimates for the current year have witnessed downward revisions in the past 7 days, reflecting analysts concern regarding the company’s growth potential.”
Several other research firms have also recently issued reports on RRR. BidaskClub raised Red Rock Resorts from a buy rating to a strong-buy rating in a research note on Friday, February 15th. Nomura raised their target price on Red Rock Resorts to $32.00 and gave the company a buy rating in a research note on Wednesday, February 13th. Finally, Deutsche Bank reaffirmed a buy rating and set a $30.00 target price on shares of Red Rock Resorts in a research note on Wednesday, February 13th. Four analysts have rated the stock with a hold rating and three have given a buy rating to the company. Red Rock Resorts currently has an average rating of Hold and an average price target of $33.20.
Shares of RRR opened at $27.87 on Tuesday. The firm has a market cap of $3.23 billion, a P/E ratio of 22.32 and a beta of 2.14. The company has a quick ratio of 0.74, a current ratio of 0.79 and a debt-to-equity ratio of 3.45. Red Rock Resorts has a 12 month low of $18.78 and a 12 month high of $36.99.
Red Rock Resorts (NASDAQ:RRR) last released its quarterly earnings results on Tuesday, February 12th. The company reported $0.30 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.29 by $0.01. Red Rock Resorts had a return on equity of 12.06% and a net margin of 9.37%. The company had revenue of $431.47 million during the quarter, compared to analysts’ expectations of $408.61 million. During the same quarter in the prior year, the business posted $0.35 earnings per share. The company’s revenue for the quarter was up 7.8% compared to the same quarter last year. On average, equities analysts forecast that Red Rock Resorts will post 1.2 earnings per share for the current fiscal year.
The business also recently announced a quarterly dividend, which was paid on Friday, March 29th. Stockholders of record on Thursday, March 14th were issued a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a dividend yield of 1.44%. The ex-dividend date of this dividend was Wednesday, March 13th. Red Rock Resorts’s dividend payout ratio is 30.53%.
In other news, insider Joseph J. Hasson sold 42,293 shares of the company’s stock in a transaction on Tuesday, March 5th. The stock was sold at an average price of $27.42, for a total transaction of $1,159,674.06. Following the completion of the sale, the insider now directly owns 58,921 shares of the company’s stock, valued at $1,615,613.82. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Joseph J. Hasson sold 1,500 shares of the company’s stock in a transaction on Tuesday, February 26th. The shares were sold at an average price of $28.83, for a total value of $43,245.00. Following the sale, the insider now directly owns 17,260 shares of the company’s stock, valued at $497,605.80. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 131,721 shares of company stock valued at $3,487,693. 0.40% of the stock is currently owned by company insiders.
A number of institutional investors have recently made changes to their positions in the stock. American Century Companies Inc. lifted its stake in Red Rock Resorts by 12.9% in the 4th quarter. American Century Companies Inc. now owns 2,009,566 shares of the company’s stock worth $40,814,000 after acquiring an additional 230,093 shares in the last quarter. Geode Capital Management LLC lifted its stake in Red Rock Resorts by 7.6% in the 4th quarter. Geode Capital Management LLC now owns 758,541 shares of the company’s stock worth $15,405,000 after acquiring an additional 53,258 shares in the last quarter. Norges Bank purchased a new stake in Red Rock Resorts in the 4th quarter worth about $14,052,000. Dimensional Fund Advisors LP lifted its stake in Red Rock Resorts by 2.4% in the 4th quarter. Dimensional Fund Advisors LP now owns 671,700 shares of the company’s stock worth $13,642,000 after acquiring an additional 15,763 shares in the last quarter. Finally, Massmutual Trust Co. FSB ADV lifted its stake in Red Rock Resorts by 39.2% in the 4th quarter. Massmutual Trust Co. FSB ADV now owns 18,626 shares of the company’s stock worth $378,000 after acquiring an additional 5,244 shares in the last quarter. 63.61% 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 Holdco and Station LLC, engages in casino entertainment, and gaming and entertainment businesses in the United States. It operates through two segments, Las Vegas operations and Native American management. The company develops, manages, and operates casino entertainment properties; and owns and operates 10 gaming and entertainment facilities, and 10 smaller casinos in the Las Vegas regional market.
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