As of the first quarter of 2023, First Republic Investment Management Inc. has increased its stake in Red Rock Resorts, Inc. (NASDAQ:RRR) by 1.8%, according to a recent disclosure filed with the Securities and Exchange Commission (SEC). The investment firm now holds a total of 455,364 shares of Red Rock Resorts, representing a 0.44% ownership stake in the company. The increase in shares was the result of First Republic Investment Management’s purchase of an additional 8,067 shares during the quarter. At the end of this reporting period, the value of First Republic Investment Management’s holdings in Red Rock Resorts amounted to approximately $20,296,000.
Red Rock Resorts is a leading gaming and entertainment company that owns and operates several casino resorts throughout Las Vegas and Nevada. The company offers a range of gaming options, including slot machines, table games, and sports betting, as well as various dining and entertainment amenities.
In relation to its financial performance, Red Rock Resorts recently released its quarterly earnings data on August 3rd. During this period, the company reported earnings per share (EPS) of $0.65, surpassing analysts’ consensus estimates by $0.21 per share. This performance reflects a return on equity of 276.42% and a net margin of 13.35%. However, despite exceeding EPS expectations, Red Rock Resorts experienced a decline in revenue for the quarter compared to the prior year. The company generated $416.13 million in revenue during this period, slightly lower than the consensus estimate of $419.60 million.
Analysts assessing Red Rock Resorts predict that it will achieve earnings per share of approximately $1.66 for the current year based on their research group’s projections.
Investors interested in gaining more insights into Red Rock Resorts are encouraged to seek our latest stock analysis on the company.
Overall, with First Republic Investment Management’s increased position in Red Rock Resorts and the company’s recent quarterly performance, it will be interesting to see how Red Rock Resorts continues to navigate the gaming and entertainment industry in the coming months.
Red Rock Resorts Sees Strong Institutional Investor Interest and Positive Analyst Ratings, Indicating Potential for Market Success
Institutional investors have been making significant modifications to their holdings of Red Rock Resorts (RRR). Envestnet Asset Management Inc. recently acquired a new position in RRR shares during the first quarter, with a value of approximately $371,000. JPMorgan Chase & Co. also increased its position in RRR by an astonishing 463.8% during the same period, now owning 304,173 shares worth $14,771,000. Raymond James & Associates followed suit and purchased a new stake in RRR valued at $1,307,000.
Furthermore, Bank of Montreal Can entered the game by acquiring a new stake in RRR for $303,000 during the first quarter. Lastly, MetLife Investment Management LLC grew its stake in Red Rock Resorts by an impressive 34.4%, now holding 28,612 shares worth $1,389,000.
With such substantial activity among institutional investors surrounding Red Rock Resorts shares, it is clear that there is considerable interest and confidence in this company’s potential.
Red Rock Resorts stock opened at $43.93 on Friday. Over the span of fifty-two weeks, its lowest recorded value was $33.62 while its highest peak reached $51.35. The company currently holds a debt-to-equity ratio of 26.38 and possesses quick and current ratios of 0.61 and 0.66 respectively.
Additionally, Red Rock Resorts boasts a market capitalization of an impressive $4.59 billion and flaunts a price-to-earnings ratio of 11.81 along with a PEG ratio of 11.19—an indication that the stock may be undervalued compared to its expected earnings growth rate.
The stock’s moving averages provide further insight into its performance trends—its 50-day moving average stands at $46.37 while its 200-day moving average rests at $45.84.
Recently, Red Rock Resorts announced its quarterly dividend, which is scheduled to be paid on Friday, September 29th. Shareholders of record as of Friday, September 15th will receive a $0.25 dividend. The ex-dividend date has been set for Thursday, September 14th. This implies an annualized dividend of $1.00 and translates to a dividend yield of 2.28%. Currently, Red Rock Resorts has a dividend payout ratio of 26.88%.
Several research reports have focused on RRR stock as well. JMP Securities raised their price objective from $51.00 to $54.00 in May while Deutsche Bank Aktiengesellschaft boosted their price target from $53.00 to $55.00 during the same period.
SpectralCast reasserted a “reiterates” rating on Red Rock Resorts shares in June, and StockNews.com initiated coverage with a “hold” rating on August 20th.
However, Wells Fargo & Company expressed a slightly contrasting view by reducing their price target from $55.00 to $53.00 but maintaining an “overweight” rating for the company in early August.
Overall, four equities research analysts have assigned a hold rating to Red Rock Resorts stock while five have given it a buy rating.
According to available data from Bloomberg, there is currently a consensus rating of “Moderate Buy” for RRR with an average target price estimated at approximately $50.89.
Considering the significant uptick in institutional investor activity and the mostly positive ratings from financial experts, it appears that Red Rock Resorts may be poised for success in the market.