Benzinga - by Benzinga Insights, Benzinga Staff Writer.
A large exercise of company stock options by Lawrence Stephen Cootey, EVP & Chief Financial Officer at Red Rock Resorts (NASDAQ:RRR) was disclosed in a new SEC filing on February 27, as part of an insider exercise.
What Happened: The latest Form 4 filing on Tuesday with the U.S. Securities and Exchange Commission uncovered Cootey, EVP & Chief Financial Officer at Red Rock Resorts, exercising stock options for 0 shares of RRR. The total transaction was valued at $0.
Currently, Red Rock Resorts shares are trading down 0.0%, priced at $55.7 during Tuesday's morning. This values Cootey's 0 shares at $0.
Get to Know Red Rock Resorts Better 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.
Red Rock Resorts: Financial Performance Dissected Revenue Growth: Red Rock Resorts's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 8.75%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Analyzing Profitability Metrics:
- Gross Margin: The company sets a benchmark with a high gross margin of 63.11%, reflecting superior cost management and profitability compared to its peers.
- Earnings per Share (EPS): With an EPS below industry norms, Red Rock Resorts exhibits below-average bottom-line performance with a current EPS of 0.97.
In-Depth Valuation Examination:
- Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 18.94 is lower than the industry average, indicating potential undervaluation for the stock.
- Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 3.33, Red Rock Resorts's stock is perceived as being overvalued in the market, particularly in relation to sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 9.35, Red Rock Resorts demonstrates a robust market valuation, outperforming industry benchmarks.
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The Relevance of Insider Transactions While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
Understanding Crucial Transaction Codes When dissecting transactions, the focal point for investors is often those occurring 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.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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