Why Should You Put Red Rock Resorts Inc. (NASDAQ: RRR) On Your Portfolio?


Diamond Hill Capital Management,.. recently announced the acquisition of new stake in Red Rock Resorts Inc. (NASDAQ:RRR). The institutional investor has increased its shareholding in the Consumer Cyclical company by 0.16% to 6.71 million shares with purchase of 10965.0 shares. This fresh investment now brings its stake to 9.43% valued currently at $73.55 million. In addition, Eminence Capital LP raised its holdings by 2.83 million to 5.19 million shares. And Goldman Sachs Asset Management LP has lifted its position by 81.02% or 0.83 million shares – to 1.87 million shares.

With over 1.6 million Red Rock Resorts Inc. (RRR) shares trading Tuesday and a closing price of $18.41 on the day, the dollar volume was approximately $29.42 million. The shares have shown a positive weekly performance of 8.90% and its price on 09/01/20 gained nearly 7.82%. Currently, there are 70.52M common shares owned by the public and among those 64.60M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 9 analysts who have offered their price forecasts for RRR have a consensus price objective of $17.75. The analysts have set the share’s price value over the next 12 months at a high of $21.00 and a low of $15.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Red Rock Resorts Inc. stock is 2.40 for the next 12 months. The average price target is -19.7% below its last price level and a downside to the estimated low will see the stock lose -22.73% over that period. But an upside of 12.33% will see the stock hit the forecast high price target while mean target price for the stock is $17.50.

Insiders at the company have transacted a total of 52 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 51 of these insider trades were purchases, accounting for 2,825,031 shares. Insider sales of the common stock occurred on 1 occasions, with total insider shares sold totaling 675,000 shares.

The top 3 mutual fund holders in Red Rock Resorts Inc. are Diamond Hill Small Mid Cap Fund, Baron Growth Fund, and Vanguard Total Stock Market Index. Diamond Hill Small Mid Cap Fund owns 2.53 million shares of the company’s stock, all valued at over $27.75 million. Baron Growth Fund sold -0.56 million shares to see its total holdings shrink to 2.0 million shares valued at over $21.92 million and representing 2.81% of the shares outstanding. Vanguard Total Stock Market Index sold 76609.0 shares to bring its total holdings to over 1.8 million shares at a value of $19.73 million. Vanguard Total Stock Market Index now owns shares totaling to 2.53% of the shares outstanding.

Shares of Red Rock Resorts Inc. (NASDAQ: RRR) opened at $17.00, down -$0.08 from a prior closing price of $17.08. However, the script later closed the day at $18.41, up 7.82%. The company’s stock has a 5-day price change of 8.90% and 22.82% over the past three months. RRR shares are trading -23.13% year to date (YTD), with the 12-month market performance down to -9.04% lower. It has a 12-month low price of $2.76 and touched a high of $27.91 over the same period. Currently, 1.6 million shares have been traded, compared to an average intraday trading volume of 2.53 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 16.89%, 42.69%, and 13.11% respectively.

Institutional ownership of Red Rock Resorts Inc. (NASDAQ: RRR) shares accounts for 87.30% of the company’s 70.52M shares outstanding. Mutual fund holders own 42.98%, while other institutional holders and individual stakeholders account for 43.66% and 11.25% respectively.

It has a market capitalization of $2.11B and a beta (3y monthly) value of 2.83. The earnings-per-share (ttm) stands at -$3.35. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.74% over the week and 6.77% over the month.

Analysts forecast that Red Rock Resorts Inc. (RRR) will achieve an EPS of -$0.03 for the current quarter, $0.06 for the next quarter and $0.15 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.42 while analysts give the company a high EPS estimate of $0.33. Comparatively, EPS for the current quarter was -$0.22 a year ago. Earnings per share for the fiscal year are expected to decrease by -103.60%, and 105.80% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 9 brokerage firm advisors rate Red Rock Resorts Inc. (RRR) as a “Moderate Buy” at a consensus score of 2.40. Specifically, 5 Wall Street analysts polled rate the stock as a buy, while 4 of the 9 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the RRR, a number of firms have released research notes about the stock. SunTrust stated their Buy rating for the stock in a research note on February 04, 2020, with the firm’s price target at $30. BofA/Merrill coverage for the Red Rock Resorts Inc. (RRR) stock in a research note released on January 06, 2020 offered a Neutral rating with a price target of. Wolfe Research was of a view on June 14, 2019 that the stock is Peer Perform, while Goldman gave the stock Buy rating on June 11, 2019, issuing a price target of $31- $29. Macquarie on their part issued Outperform rating on May 21, 2019.


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