Red Rock Resorts, Inc. (NASDAQ:RRR) Sees Significant Drop in Short Interest

Red Rock Resorts, Inc. (NASDAQ:RRR) was the recipient of a significant decline in short interest during the month of December. As of December 31st, there was short interest totaling 3,174,831 shares, a decline of 21.1% from the December 15th total of 4,021,478 shares. Based on an average daily volume of 706,783 shares, the short-interest ratio is presently 4.5 days. Approximately 6.4% of the shares of the company are sold short. Approximately 6.4% of the shares of the company are sold short. Based on an average daily volume of 706,783 shares, the short-interest ratio is presently 4.5 days.

Red Rock Resorts Stock Performance

Shares of RRR traded down $0.53 during mid-day trading on Monday, reaching $63.03. 647,346 shares of the company’s stock traded hands, compared to its average volume of 516,380. The company has a debt-to-equity ratio of 10.11, a quick ratio of 0.70 and a current ratio of 0.75. The business’s 50-day moving average price is $60.01 and its 200-day moving average price is $59.08. The stock has a market capitalization of $6.67 billion, a P/E ratio of 20.07, a price-to-earnings-growth ratio of 2.69 and a beta of 1.50. Red Rock Resorts has a 12 month low of $35.09 and a 12 month high of $64.69.

Red Rock Resorts (NASDAQ:RRR) last posted its earnings results on Tuesday, October 28th. The company reported $0.68 EPS for the quarter, beating the consensus estimate of $0.36 by $0.32. The firm had revenue of $475.57 million for the quarter, compared to analysts’ expectations of $477.25 million. Red Rock Resorts had a return on equity of 59.86% and a net margin of 9.52%.The firm’s revenue was up 1.6% compared to the same quarter last year. During the same period last year, the firm earned $0.48 EPS. Equities analysts predict that Red Rock Resorts will post 1.76 earnings per share for the current year.

Red Rock Resorts Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, December 31st. Investors of record on Monday, December 15th were issued a $0.26 dividend. The ex-dividend date of this dividend was Monday, December 15th. This is an increase from Red Rock Resorts’s previous quarterly dividend of $0.25. This represents a $1.04 annualized dividend and a yield of 1.7%. Red Rock Resorts’s dividend payout ratio is currently 33.12%.

Red Rock Resorts announced that its Board of Directors has authorized a share repurchase program on Tuesday, October 28th that authorizes the company to repurchase $300.00 million in shares. This repurchase authorization authorizes the company to repurchase up to 4.9% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its stock is undervalued.

Analyst Ratings Changes

A number of research firms have recently issued reports on RRR. Weiss Ratings restated a “hold (c+)” rating on shares of Red Rock Resorts in a research report on Wednesday, October 8th. Macquarie increased their price objective on shares of Red Rock Resorts from $67.00 to $68.00 and gave the stock an “outperform” rating in a research note on Wednesday, October 29th. UBS Group set a $73.00 target price on shares of Red Rock Resorts in a report on Wednesday, December 24th. Jefferies Financial Group reaffirmed a “buy” rating on shares of Red Rock Resorts in a report on Wednesday, December 24th. Finally, Citigroup reiterated an “outperform” rating on shares of Red Rock Resorts in a research report on Wednesday, January 14th. Eleven analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $66.43.

Institutional Investors Weigh In On Red Rock Resorts

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RRR. SG Americas Securities LLC boosted its stake in Red Rock Resorts by 135.4% during the 4th quarter. SG Americas Securities LLC now owns 25,397 shares of the company’s stock valued at $1,573,000 after purchasing an additional 14,608 shares in the last quarter. GAMMA Investing LLC lifted its holdings in shares of Red Rock Resorts by 53.8% in the fourth quarter. GAMMA Investing LLC now owns 752 shares of the company’s stock valued at $47,000 after buying an additional 263 shares during the period. JPMorgan Chase & Co. boosted its stake in Red Rock Resorts by 92.9% during the third quarter. JPMorgan Chase & Co. now owns 180,185 shares of the company’s stock valued at $11,002,000 after buying an additional 86,770 shares in the last quarter. Tudor Investment Corp ET AL bought a new position in Red Rock Resorts during the third quarter valued at about $15,114,000. Finally, Hudson Bay Capital Management LP grew its holdings in Red Rock Resorts by 50.8% during the third quarter. Hudson Bay Capital Management LP now owns 213,284 shares of the company’s stock worth $13,023,000 after acquiring an additional 71,838 shares during the period. Institutional investors own 47.84% of the company’s stock.

About Red Rock Resorts

Red Rock Resorts, Inc (NASDAQ: RRR) is a publicly traded gaming and hospitality company headquartered in Summerlin, Nevada. The company owns and operates a diversified portfolio of full-service casino resorts and neighborhood gaming properties in the Las Vegas valley. Its core business activities include resort hotel accommodations, casino gaming, food and beverage operations, entertainment and convention services designed to meet the needs of both leisure and business travelers.

The company’s flagship resort, Red Rock Casino Resort & Spa, features a full range of table games, slot machines, a luxury spa, convention space, multiple signature restaurants and live entertainment venues.