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

Red Rock Resorts, Inc. (NASDAQ:RRR) gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. 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 traded.

The company reported $0.76 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.42 by $0.34. Red Rock Resorts had a return on equity of 73.20% and a net margin of 8.59%.

Red Rock Resorts Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, March 31st. Shareholders of record on Monday, March 17th will be issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 1.94%. The ex-dividend date is Monday, March 17th. Red Rock Resorts’s dividend payout ratio is 37.04%.

Wall Street Analysts Forecast Growth

Several research firms have commented on RRR. Macquarie decreased their price objective on shares of Red Rock Resorts from $65.00 to $64.00 and set an “outperform” rating on the stock in a report on Friday, November 8th. Wells Fargo & Company decreased their price target on shares of Red Rock Resorts from $64.00 to $58.00 and set an “equal weight” rating on the stock in a research note on Thursday, October 17th. Susquehanna boosted their price objective on Red Rock Resorts from $60.00 to $61.00 and gave the stock a “positive” rating in a report on Wednesday. Mizuho upped their target price on Red Rock Resorts from $44.00 to $52.00 and gave the company a “neutral” rating in a research report on Wednesday. Finally, Jefferies Financial Group reissued a “hold” rating and set a $51.00 price target (down from $64.00) on shares of Red Rock Resorts in a report on Friday, January 3rd. Seven equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $57.33.

Institutional Investors Weigh In On Red Rock Resorts

A number of large investors have recently modified their holdings of RRR. Trexquant Investment LP bought a new stake in shares of Red Rock Resorts during the fourth quarter worth $5,273,000. Headlands Technologies LLC boosted its holdings in shares of Red Rock Resorts by 200.2% during the 4th quarter. Headlands Technologies LLC now owns 16,635 shares of the company’s stock valued at $769,000 after acquiring an additional 11,093 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its position in Red Rock Resorts by 167.6% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 422,447 shares of the company’s stock worth $19,534,000 after acquiring an additional 264,609 shares during the last quarter. Norges Bank acquired a new position in Red Rock Resorts in the 4th quarter worth about $5,352,000. Finally, JPMorgan Chase & Co. raised its position in Red Rock Resorts by 5.7% in the fourth quarter. JPMorgan Chase & Co. now owns 94,255 shares of the company’s stock valued at $4,358,000 after purchasing an additional 5,058 shares during the last quarter. Institutional investors and hedge funds own 47.84% of the company’s stock.

Red Rock Resorts Stock Up 1.3 %

The stock has a market capitalization of $5.45 billion, a P/E ratio of 19.10, a P/E/G ratio of 5.28 and a beta of 2.02. 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 firm has a 50-day simple moving average of $47.34 and a 200 day simple moving average of $51.35.

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.