Red Rock Resorts (NASDAQ:RRR) Shares Down 7.6% Following Analyst Downgrade

Red Rock Resorts, Inc. (NASDAQ:RRR) shares fell 7.6% on Wednesday after Wells Fargo & Company lowered their price target on the stock from $66.00 to $63.00. Wells Fargo & Company currently has an overweight rating on the stock. Red Rock Resorts traded as low as $48.17 and last traded at $50.24. 430,575 shares traded hands during trading, an increase of 2% from the average session volume of 423,167 shares. The stock had previously closed at $54.36.

Other equities research analysts also recently issued research reports about the stock. Bank of America increased their target price on shares of Red Rock Resorts from $52.00 to $57.00 and gave the company a “buy” rating in a research note on Monday, April 8th. Macquarie upgraded Red Rock Resorts from a “neutral” rating to an “outperform” rating and boosted their target price for the company from $51.00 to $58.00 in a research report on Wednesday, January 17th. Susquehanna increased their price target on Red Rock Resorts from $52.00 to $66.00 and gave the stock a “positive” rating in a report on Thursday, February 8th. Barclays boosted their price objective on Red Rock Resorts from $62.00 to $64.00 and gave the company an “overweight” rating in a report on Friday, April 19th. Finally, Morgan Stanley lifted their target price on Red Rock Resorts from $51.00 to $53.00 and gave the stock an “equal weight” rating in a research report on Tuesday, April 9th. Four equities research analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $61.92.

Insider Buying and Selling

In other news, CFO Stephen Lawrence Cootey sold 7,520 shares of Red Rock Resorts stock in a transaction that occurred on Friday, February 23rd. The shares were sold at an average price of $57.74, for a total value of $434,204.80. Following the transaction, the chief financial officer now owns 243,808 shares of the company’s stock, valued at approximately $14,077,473.92. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 53.28% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Red Rock Resorts

Hedge funds have recently modified their holdings of the stock. FMR LLC raised its stake in shares of Red Rock Resorts by 46.4% in the third quarter. FMR LLC now owns 5,249,335 shares of the company’s stock worth $215,223,000 after purchasing an additional 1,663,839 shares during the last quarter. Bamco Inc. NY boosted its holdings in shares of Red Rock Resorts by 10.8% in the 3rd quarter. Bamco Inc. NY now owns 9,856,963 shares of the company’s stock valued at $404,135,000 after acquiring an additional 962,841 shares during the last quarter. Vaughan Nelson Investment Management L.P. acquired a new stake in shares of Red Rock Resorts in the fourth quarter worth $40,331,000. Capital World Investors acquired a new position in Red Rock Resorts during the fourth quarter valued at $24,897,000. Finally, Eminence Capital LP boosted its holdings in Red Rock Resorts by 21.1% in the fourth quarter. Eminence Capital LP now owns 2,373,556 shares of the company’s stock valued at $126,582,000 after purchasing an additional 413,871 shares during the last quarter. Institutional investors and hedge funds own 47.84% of the company’s stock.

Red Rock Resorts Price Performance

The firm has a 50-day simple moving average of $57.82 and a two-hundred day simple moving average of $52.51. The company has a market capitalization of $5.31 billion, a price-to-earnings ratio of 17.01, a P/E/G ratio of 2.81 and a beta of 2.08. The company has a current ratio of 0.81, a quick ratio of 0.76 and a debt-to-equity ratio of 13.54.

Red Rock Resorts (NASDAQ:RRR) last announced its quarterly earnings results on Tuesday, May 7th. The company reported $0.68 earnings per share for the quarter, beating the consensus estimate of $0.50 by $0.18. Red Rock Resorts had a return on equity of 114.32% and a net margin of 10.21%. The company had revenue of $488.90 million during the quarter, compared to analysts’ expectations of $490.49 million. During the same period last year, the business earned $0.75 earnings per share. Red Rock Resorts’s quarterly revenue was up 12.7% on a year-over-year basis. As a group, analysts predict that Red Rock Resorts, Inc. will post 1.92 earnings per share for the current fiscal year.

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.