Red Rock Resorts (NASDAQ:RRR) Reaches New 1-Year High – Should You Buy?

Red Rock Resorts, Inc. (NASDAQ:RRR)’s stock price hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $64.69 and last traded at $64.4150, with a volume of 217562 shares traded. The stock had previously closed at $61.27.

Wall Street Analyst Weigh In

Several brokerages recently commented on RRR. Stifel Nicolaus set a $68.00 price target on Red Rock Resorts and gave the company a “buy” rating in a research note on Monday, November 3rd. Citigroup began coverage on Red Rock Resorts in a report on Thursday, November 20th. They set a “buy” rating and a $63.00 price target on the stock. Truist Financial boosted their price objective on shares of Red Rock Resorts from $68.00 to $70.00 and gave the stock a “buy” rating in a research report on Tuesday, October 21st. Wells Fargo & Company began coverage on shares of Red Rock Resorts in a research report on Tuesday, November 18th. They issued an “equal weight” rating and a $58.00 price target on the stock. Finally, Susquehanna boosted their price objective on Red Rock Resorts from $68.00 to $69.00 and gave the company a “positive” rating in a research report on Wednesday, October 29th. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $65.08.

Red Rock Resorts Trading Up 4.7%

The business’s 50-day moving average price is $58.88 and its 200 day moving average price is $58.52. The company has a market cap of $6.79 billion, a P/E ratio of 20.42, a P/E/G ratio of 2.05 and a beta of 1.50. The company has a debt-to-equity ratio of 10.11, a quick ratio of 0.70 and a current ratio of 0.75.

Red Rock Resorts (NASDAQ:RRR) last posted its earnings results on Tuesday, October 28th. The company reported $0.68 earnings per share for the quarter, topping analysts’ consensus estimates of $0.36 by $0.32. The company had revenue of $475.57 million during the quarter, compared to the consensus estimate of $477.25 million. Red Rock Resorts had a return on equity of 59.86% and a net margin of 9.52%.The company’s revenue was up 1.6% on a year-over-year basis. During the same quarter last year, the firm earned $0.48 earnings per share. As a group, analysts expect that Red Rock Resorts, Inc. will post 1.76 earnings per share for the current year.

Red Rock Resorts Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, December 31st. Stockholders of record on Monday, December 15th were issued a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a dividend yield of 1.6%. This is a boost from Red Rock Resorts’s previous quarterly dividend of $0.25. The ex-dividend date was Monday, December 15th. Red Rock Resorts’s dividend payout ratio (DPR) is currently 33.12%.

Red Rock Resorts declared that its Board of Directors has approved a share buyback plan on Tuesday, October 28th that permits the company to repurchase $300.00 million in shares. This repurchase authorization permits the company to purchase up to 4.9% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board believes its shares are undervalued.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of RRR. Arrowstreet Capital Limited Partnership lifted its stake in shares of Red Rock Resorts by 2,248.2% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,354,644 shares of the company’s stock valued at $82,715,000 after purchasing an additional 1,296,956 shares during the period. Bamco Inc. NY increased its stake in Red Rock Resorts by 5.7% during the 2nd quarter. Bamco Inc. NY now owns 12,269,004 shares of the company’s stock valued at $638,356,000 after purchasing an additional 666,593 shares in the last quarter. Eminence Capital LP raised its holdings in Red Rock Resorts by 23.4% during the second quarter. Eminence Capital LP now owns 3,059,372 shares of the company’s stock worth $159,179,000 after buying an additional 581,061 shares during the last quarter. Vanguard Group Inc. increased its position in shares of Red Rock Resorts by 6.7% during the third quarter. Vanguard Group Inc. now owns 5,564,421 shares of the company’s stock worth $339,764,000 after acquiring an additional 349,822 shares in the last quarter. Finally, Voloridge Investment Management LLC raised its holdings in shares of Red Rock Resorts by 556.5% in the 3rd quarter. Voloridge Investment Management LLC now owns 334,610 shares of the company’s stock worth $20,431,000 after acquiring an additional 283,642 shares during the last quarter. 47.84% of the stock is owned by institutional investors.

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.