Capital Fund Management S.A. Makes New $1.44 Million Investment in Red Rock Resorts, Inc. $RRR

Capital Fund Management S.A. purchased a new position in shares of Red Rock Resorts, Inc. (NASDAQ:RRR) during the second quarter, Holdings Channel.com reports. The fund purchased 27,687 shares of the company’s stock, valued at approximately $1,441,000.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Eminence Capital LP boosted its stake in Red Rock Resorts by 20.5% in the 1st quarter. Eminence Capital LP now owns 2,478,311 shares of the company’s stock worth $107,484,000 after purchasing an additional 421,723 shares in the last quarter. Nuveen LLC purchased a new position in shares of Red Rock Resorts in the first quarter worth $11,025,000. Vaughan Nelson Investment Management L.P. lifted its stake in shares of Red Rock Resorts by 10.7% during the second quarter. Vaughan Nelson Investment Management L.P. now owns 1,773,603 shares of the company’s stock worth $92,281,000 after buying an additional 171,235 shares during the period. Millennium Management LLC grew its holdings in shares of Red Rock Resorts by 56.2% during the first quarter. Millennium Management LLC now owns 430,150 shares of the company’s stock valued at $18,656,000 after buying an additional 154,839 shares during the last quarter. Finally, Trexquant Investment LP increased its position in shares of Red Rock Resorts by 116.8% in the 1st quarter. Trexquant Investment LP now owns 247,242 shares of the company’s stock valued at $10,723,000 after acquiring an additional 133,208 shares during the period. 47.84% of the stock is owned by hedge funds and other institutional investors.

Red Rock Resorts Trading Down 3.3%

Shares of NASDAQ:RRR opened at $56.33 on Friday. The company has a current ratio of 0.75, a quick ratio of 0.70 and a debt-to-equity ratio of 10.11. Red Rock Resorts, Inc. has a 12-month low of $35.09 and a 12-month high of $63.60. The business has a 50 day moving average of $57.73 and a two-hundred day moving average of $56.34. The company has a market capitalization of $5.96 billion, a PE ratio of 17.94, a PEG ratio of 2.05 and a beta of 1.52.

Red Rock Resorts (NASDAQ:RRR) last posted its earnings results on Tuesday, October 28th. The company reported $0.68 earnings per share for the quarter, beating the consensus estimate 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 analyst estimates of $477.25 million. During the same period in the previous year, the firm earned $0.48 EPS. The business’s quarterly revenue was up 1.6% on a year-over-year basis. As a group, analysts forecast that Red Rock Resorts, Inc. will post 1.76 EPS for the current year.

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

Red Rock Resorts Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 31st. Shareholders of record on Monday, December 15th will be given a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a dividend yield of 1.8%. This is an increase from Red Rock Resorts’s previous quarterly dividend of $0.25. The ex-dividend date is Monday, December 15th. Red Rock Resorts’s payout ratio is currently 31.85%.

Wall Street Analyst Weigh In

A number of brokerages have commented on RRR. Truist Financial lifted their price target on Red Rock Resorts from $68.00 to $70.00 and gave the stock a “buy” rating in a research report on Tuesday, October 21st. JMP Securities lifted their target price on Red Rock Resorts from $64.00 to $65.00 and gave the stock a “market outperform” rating in a report on Tuesday, September 16th. Susquehanna upped their target price on Red Rock Resorts from $68.00 to $69.00 and gave the company a “positive” rating in a research report on Wednesday, October 29th. Jefferies Financial Group raised shares of Red Rock Resorts from a “hold” rating to a “buy” rating and reduced their price target for the stock from $66.00 to $65.00 in a research report on Tuesday, November 4th. Finally, Zacks Research cut shares of Red Rock Resorts from a “strong-buy” rating to a “hold” rating in a research note on Friday, October 10th. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, Red Rock Resorts currently has a consensus rating of “Moderate Buy” and a consensus target price of $64.42.

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.