Wells Fargo & Company Initiates Coverage on Red Rock Resorts (NASDAQ:RRR)

Stock analysts at Wells Fargo & Company assumed coverage on shares of Red Rock Resorts (NASDAQ:RRR) in a report released on Tuesday. The brokerage set an “equal weight” rating and a $58.00 price target on the stock. Wells Fargo & Company‘s price objective points to a potential upside of 7.43% from the company’s current price.

Several other analysts have also recently commented on the stock. Citigroup restated an “outperform” rating on shares of Red Rock Resorts in a report on Tuesday, September 16th. Macquarie increased their target price on shares of Red Rock Resorts from $67.00 to $68.00 and gave the stock an “outperform” rating in a research report on Wednesday, October 29th. Stifel Nicolaus set a $68.00 target price on shares of Red Rock Resorts and gave the company a “buy” rating in a research note on Monday, November 3rd. JMP Securities upped their price target 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. Finally, Mizuho increased their price objective on Red Rock Resorts from $62.00 to $67.00 and gave the stock an “outperform” rating in a report on Wednesday, October 29th. Ten equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $64.55.

Red Rock Resorts Trading Down 5.9%

Red Rock Resorts stock opened at $53.99 on Tuesday. The firm has a market cap of $5.72 billion, a price-to-earnings ratio of 17.19, a price-to-earnings-growth ratio of 2.02 and a beta of 1.51. Red Rock Resorts has a 1 year low of $35.09 and a 1 year high of $63.60. The firm’s 50 day moving average price is $58.73 and its two-hundred day moving average price is $55.42. 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 quarterly earnings data on Tuesday, October 28th. The company reported $0.68 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.36 by $0.32. The firm had revenue of $475.57 million for 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 business’s revenue for the quarter was up 1.6% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.48 EPS. On average, research analysts predict that Red Rock Resorts will post 1.76 EPS for the current fiscal year.

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

Insider Activity

In related news, COO Kord Nichols sold 37,075 shares of the firm’s stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $61.03, for a total transaction of $2,262,687.25. Following the completion of the sale, the chief operating officer directly owned 87,036 shares of the company’s stock, valued at $5,311,807.08. This trade represents a 29.87% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Company insiders own 53.28% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Mitsubishi UFJ Asset Management Co. Ltd. lifted its stake in shares of Red Rock Resorts by 230.5% during the second quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 552 shares of the company’s stock valued at $29,000 after acquiring an additional 385 shares during the period. Strs Ohio acquired a new stake in Red Rock Resorts in the third quarter worth about $37,000. Ameritas Advisory Services LLC bought a new stake in Red Rock Resorts during the 2nd quarter worth about $42,000. Pandora Wealth Inc. bought a new stake in Red Rock Resorts during the 1st quarter worth about $43,000. Finally, US Bancorp DE lifted its position in Red Rock Resorts by 1,664.4% during the 1st quarter. US Bancorp DE now owns 1,041 shares of the company’s stock valued at $45,000 after purchasing an additional 982 shares during the period. Institutional investors and hedge funds 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.