Red Rock Resorts (NASDAQ:RRR) Shares Gap Up Following Strong Earnings

Red Rock Resorts, Inc. (NASDAQ:RRR) shares gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $50.92, but opened at $53.11. Red Rock Resorts shares last traded at $53.42, with a volume of 176,073 shares changing hands.

The company reported $0.76 EPS for the quarter, topping analysts’ consensus estimates of $0.42 by $0.34. Red Rock Resorts had a net margin of 8.59% and a return on equity of 73.20%.

Analysts Set New Price Targets

Several research firms have recently issued reports on RRR. Wells Fargo & Company lowered their price objective on Red Rock Resorts from $64.00 to $58.00 and set an “equal weight” rating for the company in a research note on Thursday, October 17th. Barclays lowered their price objective on Red Rock Resorts from $65.00 to $62.00 and set an “overweight” rating for the company in a research note on Friday, November 8th. Truist Financial lowered their price objective on Red Rock Resorts from $56.00 to $49.00 and set a “hold” rating for the company in a research note on Tuesday, January 14th. Jefferies Financial Group reaffirmed a “hold” rating and issued a $51.00 price objective (down previously from $64.00) on shares of Red Rock Resorts in a research note on Friday, January 3rd. Finally, Macquarie decreased their target price on shares of Red Rock Resorts from $65.00 to $64.00 and set an “outperform” rating for the company in a research report on Friday, November 8th. Seven investment analysts have rated the stock with a hold rating and five have given a buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $58.00.

Hedge Funds Weigh In On Red Rock Resorts

Several hedge funds have recently made changes to their positions in the business. Quarry LP lifted its holdings in shares of Red Rock Resorts by 479.4% during the third quarter. Quarry LP now owns 1,124 shares of the company’s stock valued at $61,000 after purchasing an additional 930 shares in the last quarter. US Bancorp DE lifted its holdings in Red Rock Resorts by 2,223.9% in the third quarter. US Bancorp DE now owns 1,557 shares of the company’s stock valued at $85,000 after acquiring an additional 1,490 shares during the period. KBC Group NV lifted its holdings in Red Rock Resorts by 37.1% in the fourth quarter. KBC Group NV now owns 1,996 shares of the company’s stock valued at $92,000 after acquiring an additional 540 shares during the period. nVerses Capital LLC lifted its holdings in Red Rock Resorts by 28.6% in the third quarter. nVerses Capital LLC now owns 3,600 shares of the company’s stock valued at $196,000 after acquiring an additional 800 shares during the period. Finally, Mayfair Advisory Group LLC increased its position in Red Rock Resorts by 15.1% in the fourth quarter. Mayfair Advisory Group LLC now owns 4,497 shares of the company’s stock worth $208,000 after buying an additional 591 shares in the last quarter. 47.84% of the stock is owned by hedge funds and other institutional investors.

Red Rock Resorts Stock Performance

The company has a debt-to-equity ratio of 14.28, a current ratio of 1.02 and a quick ratio of 0.96. The business has a 50-day simple moving average of $47.30 and a 200 day simple moving average of $51.35. The firm has a market cap of $5.65 billion, a PE ratio of 19.80, a PEG ratio of 5.28 and a beta of 2.02.

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.