Red Rock Resorts (NASDAQ:RRR) Hits New 52-Week High – What’s Next?

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

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on RRR shares. UBS Group set a $73.00 target price on shares of Red Rock Resorts in a research report on Wednesday, December 24th. Zacks Research downgraded Red Rock Resorts from a “strong-buy” rating to a “hold” rating in a report on Friday, October 10th. Citigroup began coverage on Red Rock Resorts in a report on Thursday, November 20th. They issued a “buy” rating and a $63.00 target price for the company. Weiss Ratings reissued a “hold (c+)” rating on shares of Red Rock Resorts in a research report on Wednesday, October 8th. Finally, 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. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, Red Rock Resorts currently has an average rating of “Moderate Buy” and a consensus target price of $65.08.

Red Rock Resorts Stock Down 1.6%

The business has a 50 day moving average of $59.27 and a two-hundred day moving average of $58.64. The stock has a market capitalization of $6.63 billion, a PE ratio of 19.95, a PEG ratio of 2.71 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 announced its earnings results on Tuesday, October 28th. The company reported $0.68 EPS for the quarter, topping analysts’ consensus estimates of $0.36 by $0.32. Red Rock Resorts had a net margin of 9.52% and a return on equity of 59.86%. The business had revenue of $475.57 million during the quarter, compared to the consensus estimate of $477.25 million. During the same period in the previous year, the company posted $0.48 earnings per share. The firm’s revenue was up 1.6% on a year-over-year basis. Analysts predict that Red Rock Resorts, Inc. will post 1.76 EPS for the current year.

Red Rock Resorts Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, December 31st. Investors of record on Monday, December 15th were given a dividend of $0.26 per share. The ex-dividend date of this dividend was Monday, December 15th. This is a positive change from Red Rock Resorts’s previous quarterly dividend of $0.25. This represents a $1.04 dividend on an annualized basis and a yield of 1.7%. Red Rock Resorts’s dividend payout ratio is currently 33.12%.

Red Rock Resorts announced that its Board of Directors has authorized a stock buyback plan on Tuesday, October 28th that permits the company to repurchase $300.00 million in shares. This repurchase authorization permits the company to repurchase up to 4.9% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

Hedge Funds Weigh In On Red Rock Resorts

Large investors have recently made changes to their positions in the business. SG Americas Securities LLC boosted its position in shares of Red Rock Resorts by 135.4% in the 4th quarter. SG Americas Securities LLC now owns 25,397 shares of the company’s stock worth $1,573,000 after purchasing an additional 14,608 shares in the last quarter. GAMMA Investing LLC boosted its holdings 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 in the last quarter. JPMorgan Chase & Co. grew its stake in shares of Red Rock Resorts by 92.9% during the third quarter. JPMorgan Chase & Co. now owns 180,185 shares of the company’s stock worth $11,002,000 after acquiring an additional 86,770 shares during the last quarter. Tudor Investment Corp ET AL acquired a new position in shares of Red Rock Resorts during the third quarter valued at about $15,114,000. Finally, Hudson Bay Capital Management LP raised its position in shares of Red Rock Resorts by 50.8% in the 3rd quarter. Hudson Bay Capital Management LP now owns 213,284 shares of the company’s stock valued at $13,023,000 after purchasing an additional 71,838 shares during the last quarter. 47.84% of the stock is owned by institutional investors and hedge funds.

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.