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

Red Rock Resorts, Inc. (NASDAQ:RRR) reached 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 traded. The stock had previously closed at $61.27.

Analyst Ratings Changes

A number of equities research analysts have issued reports on RRR shares. Macquarie raised their price target on shares of Red Rock Resorts from $67.00 to $68.00 and gave the stock an “outperform” rating in a report on Wednesday, October 29th. UBS Group set a $73.00 price objective on Red Rock Resorts in a research report on Wednesday, December 24th. Mizuho lifted their target price on shares of Red Rock Resorts from $62.00 to $67.00 and gave the stock an “outperform” rating in a report on Wednesday, October 29th. Wells Fargo & Company assumed coverage on Red Rock Resorts in a report on Tuesday, November 18th. They set an “equal weight” rating and a $58.00 price target on the stock. Finally, Citigroup started coverage on shares of Red Rock Resorts in a report on Thursday, November 20th. They issued a “buy” rating and a $63.00 target price on the stock. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $65.08.

Red Rock Resorts Stock Performance

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

Red Rock Resorts (NASDAQ:RRR) last announced its quarterly earnings data on Tuesday, October 28th. The company reported $0.68 EPS for the quarter, beating 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 firm had revenue of $475.57 million during the quarter, compared to the consensus estimate of $477.25 million. During the same quarter last year, the firm earned $0.48 earnings per share. The firm’s revenue was up 1.6% compared to the same quarter last year. As a group, research analysts expect 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 disclosed a quarterly dividend, which was paid on Wednesday, December 31st. Investors of record on Monday, December 15th were issued a $0.26 dividend. This is a positive change from Red Rock Resorts’s previous quarterly dividend of $0.25. The ex-dividend date of this dividend was Monday, December 15th. This represents a $1.04 dividend on an annualized basis and a yield of 1.6%. Red Rock Resorts’s dividend payout ratio is currently 33.12%.

Red Rock Resorts announced that its board has approved a stock repurchase plan on Tuesday, October 28th that allows the company to repurchase $300.00 million in outstanding shares. This repurchase authorization allows the company to repurchase up to 4.9% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Mitsubishi UFJ Asset Management Co. Ltd. grew its holdings in shares of Red Rock Resorts by 230.5% in the 2nd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 552 shares of the company’s stock worth $29,000 after acquiring an additional 385 shares during the last quarter. Strs Ohio acquired a new position in shares of Red Rock Resorts in the third quarter worth about $37,000. GAMMA Investing LLC increased its position in shares of 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. Ameritas Advisory Services LLC acquired a new stake in shares of Red Rock Resorts during the second quarter valued at approximately $42,000. Finally, Atlantic Union Bankshares Corp acquired a new position in Red Rock Resorts in the 2nd quarter worth approximately $62,000. Institutional investors own 47.84% of the company’s stock.

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.