SCOTT KREEGER Seizes Opportunity: Acquires $88K Worth Of Red Rock Resorts Stock Options

A substantial insider move unfolded on February 19, as KREEGER, President at Red Rock Resorts RRR, reported the acquisition of stock options for 109,606 shares in an SEC filing.

What Happened: KREEGER, President at Red Rock Resorts, acquired stock options for 109,606 shares of RRR. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The options allow KREEGER to buy the company's stock at $52.1 per share.

Red Rock Resorts shares are currently trading down by 0.0%, with a current price of $52.91 as of Wednesday morning. This brings the total value of KREEGER's 109,606 shares to $88,780.

About Red Rock Resorts

Red Rock Resorts Inc along with its subsidiary is a gaming, development, and management company. The company mainly develops strategically located casino and entertainment properties. It generates a majority of its revenue from Casino.

A Deep Dive into Red Rock Resorts's Financials

Revenue Growth: Red Rock Resorts's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 13.7%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Key Profitability Indicators:

• Gross Margin: The company sets a benchmark with a high gross margin of 60.78%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 0.49, Red Rock Resorts showcases strong earnings per share.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 19.63, caution is advised due to increased financial risk.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 20.91 is lower than the industry average, implying a discounted valuation for Red Rock Resorts's stock.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 2.83 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 8.71, Red Rock Resorts could be considered undervalued.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Why Insider Transactions Are Important

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Understanding Crucial Transaction Codes

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Red Rock Resorts's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.