Red Rock Resorts (NASDAQ:RRR) Reaches New 52-Week High – Should You Buy?

Red Rock Resorts, Inc. (NASDAQ:RRR)’s share price hit a new 52-week high during trading on Wednesday . The company traded as high as $64.25 and last traded at $63.8650, with a volume of 135110 shares. The stock had previously closed at $62.67.

Analyst Ratings Changes

Several equities analysts have weighed in on RRR shares. Stifel Nicolaus set a $68.00 target price on Red Rock Resorts and gave the company a “buy” rating in a research note on Monday, November 3rd. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Red Rock Resorts in a research note on Wednesday, October 8th. JMP Securities lifted their price objective on shares of Red Rock Resorts from $64.00 to $65.00 and gave the stock a “market outperform” rating in a research note on Tuesday, September 16th. Truist Financial boosted their price objective on shares of Red Rock Resorts from $68.00 to $70.00 and gave the company a “buy” rating in a report on Tuesday, October 21st. Finally, Zacks Research lowered shares of Red Rock Resorts from a “strong-buy” rating to a “hold” rating in a report on Friday, October 10th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $64.42.

Red Rock Resorts Stock Up 1.8%

The company has a debt-to-equity ratio of 10.11, a current ratio of 0.75 and a quick ratio of 0.70. The company has a market capitalization of $6.75 billion, a price-to-earnings ratio of 20.28, a PEG ratio of 2.18 and a beta of 1.52. The firm has a 50-day moving average price of $57.49 and a two-hundred day moving average price of $57.12.

Red Rock Resorts (NASDAQ:RRR) last released its earnings results on Tuesday, October 28th. The company reported $0.68 EPS for the quarter, beating the consensus estimate of $0.36 by $0.32. The firm had revenue of $475.57 million for the quarter, compared to analysts’ expectations of $477.25 million. Red Rock Resorts had a return on equity of 59.86% and a net margin of 9.52%.The business’s quarterly revenue was up 1.6% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.48 EPS. As a group, sell-side analysts anticipate that Red Rock Resorts, Inc. will post 1.76 earnings per share for the current fiscal year.

Red Rock Resorts Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, December 31st. Investors of record on Monday, December 15th will be given a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a yield of 1.6%. This is an increase from Red Rock Resorts’s previous quarterly dividend of $0.25. The ex-dividend date of this dividend is Monday, December 15th. Red Rock Resorts’s payout ratio is 33.12%.

Red Rock Resorts announced that its Board of Directors has approved a stock repurchase program on Tuesday, October 28th that allows the company to buyback $300.00 million in outstanding shares. This buyback authorization allows the company to repurchase up to 4.9% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s board of directors believes its stock is undervalued.

Institutional Trading of Red Rock Resorts

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Bamco Inc. NY grew its stake in Red Rock Resorts by 5.7% in the second 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. Vanguard Group Inc. boosted its holdings in shares of Red Rock Resorts by 6.7% in the 3rd quarter. Vanguard Group Inc. now owns 5,564,421 shares of the company’s stock valued at $339,764,000 after buying an additional 349,822 shares during the last quarter. Eminence Capital LP boosted its holdings in shares of Red Rock Resorts by 23.4% in the 2nd quarter. Eminence Capital LP now owns 3,059,372 shares of the company’s stock valued at $159,179,000 after buying an additional 581,061 shares during the last quarter. Vaughan Nelson Investment Management L.P. grew its stake in shares of Red Rock Resorts by 10.7% in the second quarter. Vaughan Nelson Investment Management L.P. now owns 1,773,603 shares of the company’s stock valued at $92,281,000 after buying an additional 171,235 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its holdings in Red Rock Resorts by 2,248.2% during the third quarter. Arrowstreet Capital Limited Partnership now owns 1,354,644 shares of the company’s stock worth $82,715,000 after buying an additional 1,296,956 shares during the last quarter. Institutional investors own 47.84% of the company’s stock.

Red Rock Resorts Company Profile

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.