The world of investments has always been full of surprises. One day, a company’s stock may be on the rise, attracting investors from all corners of the globe. The next minute, a major institutional investor such as Russell Investments Group Ltd. cuts its holdings in the same company, causing a stir in the market.
According to its most recent Form 13F filing with the Securities and Exchange Commission (SEC), Russell Investments Group Ltd. has cut its holdings in Red Rock Resorts, Inc. (NASDAQ:RRR) by 7.9% in the fourth quarter of 2022. The institutional investor owned 27,641 shares of the company’s stock after selling 2,361 shares during the period. Russell Investments Group Ltd.’s holdings in Red Rock Resorts were worth $1,106,000 at the end of the most recent reporting period.
However, this news is nothing new for Red Rock Resorts’ shareholders and interested parties. On May 4th, 2023, Red Rock Resorts released its earnings results for the previous quarter and exceeded analysts’ expectations by reporting an EPS of $0.75 compared to the consensus estimate of $0.47 – beating it by an impressive $0.28.
The company had revenue of $433.64 million during the quarter – exceeding analysts’ expectations of $413.05 million by an impressive margin as well. Red Rock Resorts had a net margin of 11.90% and a return on equity of 808.22%. Even better news for stakeholders is that their revenue for this quarter was up by an incredible 8% compared to that same quarter last year.
Red Rock Resorts prides itself as a holding company that engages in the management and development of gaming and entertainment facilities through two segments – Las Vegas Operations and Native American Management; with various amenities include restaurants, entertainment venues movie theaters bowling and convention or banquet spaces alongside traditional casino gaming offerings such as video poker, slot machines, table games, bingo and race and sports wagering for their customers.
As a group of equities analysts forecast, Red Rock Resorts, Inc. is expected to post 1.8 earnings per share for the current year – a promising sign for stakeholders in the company. Despite Russell Investments Group Ltd.’s cut in holdings towards the business at present, there seems no reason or incentive to suggest why those investing in Red Rock Resorts should not remain hopeful for an increasingly prosperous future.
Red Rock Resorts Positioned for Long-Term Growth Within the Gaming and Entertainment Industry
Red Rock Resorts: A Holding Company on the Rise
In recent months, Red Rock Resorts, a holding company that manages and develops gaming and entertainment facilities, has been making waves within the investment community. Several hedge funds, including Capital Research Global Investors and JPMorgan Chase & Co., have recently bought and sold shares of RRR, while Goldman Sachs Group Inc., Renaissance Technologies LLC, and Millennium Management LLC have all substantially increased their positions in the company. According to Bloomberg.com data, institutional investors currently own 52.45% of Red Rock Resort’s stock.
On Friday, May 26th, shares of RRR opened at $45.64 with a market cap of $4.76 billion. The company boasts a PE ratio of 13.71 along with a price-to-earnings-growth ratio of 6.82 and a beta of 2.17. With a debt-to-equity ratio of 32.33, current ratio of 0.65, and quick ratio of 0.61, Red Rock is positioning itself for long-term growth within the industry.
One-year high/low pricing for RRR is $49.81/$30.98 respectively with a 50-day moving average price sitting at $45.30 and a 200-day moving average price hovering around $44.24.
Red Rock Resorts operates through two segments: Las Vegas Operations and Native American Management each providing unique amenities inclusive of restaurants; entertainment venues; movie theaters; bowling alleys; convention or banquet spaces; video poker machines; slot machines; table games; bingo; race and sports wagering.
Shareholders seeking quarterly dividends will be rewarded on Friday June 30th as shareholders of record on Thursday June15th will be granted $0.25 dividends with this payout amount representing an annual dividend yield of 2%. Red Rock Resorts’ ex-dividend date is Wednesday June14th.
Several research firms have published ratings for RRR such as StockNews.com who gave it a “buy” rating and Deutsche Bank Aktiengesellschaft who increased their price target from $53.00 to $55.00 in May 2017. Red Rock Resorts has an overall moderate buy consensus rating according to data compiled by Bloomberg.com with a consensus target price of $49.09, sure signs that the company is on the rise within the holding industry.
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