Red Rock Resorts, Inc. (RRR) Bundle
Who Invests in Red Rock Resorts, Inc. (RRR) and Why?
Who Invests in Red Rock Resorts, Inc. and Why?
Key Investor Types
- Retail Investors: Individual investors who buy and sell stocks for personal accounts. As of September 30, 2024, retail ownership accounted for approximately 20% of total shares outstanding.
- Institutional Investors: Entities like mutual funds, pension funds, and insurance companies. Institutional investors held around 75% of shares as of the latest disclosures.
- Hedge Funds: Typically invest in high-risk, high-reward opportunities. A recent report indicated hedge funds owned about 5% of total shares, with notable interest due to potential for high returns.
Investment Motivations
- Growth Prospects: Investors are attracted by the company's expansion strategy, particularly following the opening of the Durango property in December 2023, which contributed to a 14.4% year-over-year revenue increase to $1.44 billion for the nine months ended September 30, 2024.
- Dividends: The company declared dividends of $0.25 per share for Class A common stock, appealing to income-focused investors.
- Market Position: Strong performance in the Las Vegas market, with casino revenues increasing by 15.2% year-over-year for Q3 2024.
Investment Strategies
- Long-Term Holding: Many institutional investors adopt a long-term investment strategy, benefiting from steady growth and dividends.
- Short-Term Trading: Retail investors often engage in short-term trading to capitalize on market volatility, especially around earnings announcements.
- Value Investing: Some investors focus on the company's valuation metrics, particularly as it trades at a P/E ratio of approximately 28.5, which could indicate potential for value appreciation.
| Investor Type | Ownership Percentage | Key Motivations |
|---|---|---|
| Retail Investors | 20% | Short-term gains, dividends |
| Institutional Investors | 75% | Growth prospects, stability |
| Hedge Funds | 5% | High returns, risk-taking |
As of September 30, 2024, net income attributable to Red Rock Resorts, Inc. was $107.5 million, reflecting a decline of 10.2% compared to the previous year. The company’s effective tax rate also reported was 12.7% for Q3 2024, down from 11.9% in Q3 2023.
Institutional Ownership and Major Shareholders of Red Rock Resorts, Inc. (RRR)
Institutional Ownership and Major Shareholders
Top Institutional Investors: The largest institutional investors and their shareholdings in Red Rock Resorts, Inc. as of 2024 are as follows:
| Institution | Shares Held | Percentage of Ownership |
|---|---|---|
| Fertitta Family Entities | 45,986,000 | 43.5% |
| Vanguard Group Inc. | 3,500,000 | 3.4% |
| BlackRock Inc. | 3,200,000 | 3.1% |
| State Street Corporation | 2,800,000 | 2.7% |
| Wellington Management Group LLP | 2,500,000 | 2.4% |
Changes in Ownership: Recent changes in ownership indicate that institutional investors have increased their stakes in Red Rock Resorts. For example, Vanguard Group Inc. increased its holdings by 12% in the last quarter, while BlackRock Inc. saw an increase of 8% in their shareholding.
Impact of Institutional Investors: Institutional investors play a significant role in influencing the company's stock price and strategic direction. Their large shareholdings often lead to increased stability in stock prices, as these investors tend to have a long-term investment horizon. Additionally, their involvement can enhance the company's credibility in the market, attracting further investments. For instance, following the recent increase in holdings by major institutions, the stock price rose by 15% over the past six months, reflecting positive market sentiment.
Market Capitalization: As of September 30, 2024, the market capitalization of Red Rock Resorts, Inc. stands at approximately $3.95 billion.
Recent Stock Performance: The stock price has shown robust growth, with a year-to-date increase of approximately 22% as of September 30, 2024.
Key Investors and Their Influence on Red Rock Resorts, Inc. (RRR)
Key Investors and Their Impact on Red Rock Resorts, Inc. (RRR)
As of 2024, Red Rock Resorts, Inc. (RRR) has attracted a diverse range of investors, including institutional funds and individual stakeholders, each influencing the company's strategic direction and financial performance.
Notable Investors
- Fertitta Family Entities - This group is a significant stakeholder, holding a considerable percentage of Class A and Class B shares, which grants them substantial influence over company decisions.
- BlackRock, Inc. - Known for its large asset management portfolio, BlackRock has invested in RRR, contributing to its stock liquidity and market visibility.
- Vanguard Group, Inc. - Another major institutional investor, Vanguard's ownership reflects confidence in RRR’s long-term growth prospects.
Investor Influence
The influence of these investors extends to various aspects of the company, including:
- Strategic Decisions: Major shareholders like the Fertitta Family can sway board decisions and strategic initiatives, particularly those related to expansion and capital allocation.
- Stock Movements: Institutional investors can impact stock price volatility through their buying and selling actions, especially during earnings announcements or significant corporate events.
Recent Moves
Recent activities from key investors include:
- Fertitta Family Entities: During the nine months ended September 30, 2024, the Fertitta Family received $6.5 million in dividends from their holdings .
- Stock Repurchase Program: The company announced a $600 million equity repurchase program, which reflects confidence in its stock valuation. As of September 30, 2024, it had repurchased 75,000 shares for approximately $3.9 million .
- BlackRock: Increased its stake in the company, further solidifying its position as a key institutional investor .
Financial Overview
As of September 30, 2024, the following financial data highlights the company's performance:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Revenues | $468.0 million | $411.6 million | 13.7% |
| Operating Income | $130.6 million | $122.5 million | 6.6% |
| Net Income | $55.4 million | $68.4 million | -18.5% |
| Earnings per Share (Diluted) | $0.48 | $0.60 | -20% |
The financial performance reflects a robust increase in revenues driven by operational enhancements and strategic investments, although net income experienced a decline largely attributed to increased expenses and interest costs .
Market Impact and Investor Sentiment of Red Rock Resorts, Inc. (RRR)
Market Impact and Investor Sentiment
Investor Sentiment: The current sentiment of major shareholders toward Red Rock Resorts, Inc. is generally neutral. Recent movements indicate a cautious approach, as major shareholders are maintaining their positions without significant buying or selling pressure.
Recent Market Reactions
Following the announcement of the new Durango property in December 2023, the stock market responded positively, with shares increasing by approximately 5.2% in the weeks following the opening. However, fluctuations occurred due to overall market conditions, particularly influenced by rising interest rates and inflation concerns.
| Date | Stock Price ($) | % Change | Market Reaction |
|---|---|---|---|
| December 1, 2023 | 50.25 | - | Stock stable before Durango opening |
| December 6, 2023 | 52.50 | +4.5% | Positive reception of Durango opening |
| January 15, 2024 | 51.00 | -2.9% | Market correction |
| February 10, 2024 | 53.00 | +3.9% | Positive quarterly earnings report |
Analyst Perspectives
Analysts express a mixed to positive outlook for Red Rock Resorts, Inc. with an average target price of $54.00, reflecting an upside potential of about 7.5% from current levels. They note the strategic importance of the newly opened Durango property, which is expected to contribute significantly to revenue growth. Analysts highlight the following key metrics:
| Metric | Value | Analyst Commentary |
|---|---|---|
| Net Revenue (Q3 2024) | $468.0 million | Up 13.7% YoY |
| Operating Income (Q3 2024) | $130.6 million | Increase of 6.6% YoY |
| Adjusted EBITDA (Nine Months Ended Sept 2024) | $593.5 million | Solid growth trajectory |
| Debt Levels | $3.44 billion | Management's focus on reducing leverage |
Overall, while investor sentiment remains neutral, the strategic developments and positive financial indicators suggest a cautiously optimistic outlook among analysts and shareholders alike.
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Resources:
- Red Rock Resorts, Inc. (RRR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Red Rock Resorts, Inc. (RRR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Red Rock Resorts, Inc. (RRR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.