Breaking Update: Lorenzo J Fertitta Engages In Options Exercise At Red Rock Resorts Realizing $0

Lorenzo J Fertitta, Vice President at Red Rock Resorts RRR, reported a large exercise of company stock options on February 19, according to a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that Fertitta, Vice President at Red Rock Resorts, a company in the Consumer Discretionary sector, just exercised stock options worth 0 shares of RRR stock with an exercise price of $0.0.

Red Rock Resorts shares are trading, exhibiting down of 1.75% and priced at $51.98 during Wednesday’s morning. This values Fertitta’s 0 shares at $0.

All You Need to Know 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.

Red Rock Resorts: A Financial Overview

Revenue Growth: Over the 3 months period, Red Rock Resorts showcased positive performance, achieving a revenue growth rate of 13.7% as of 30 September, 2024. This reflects a substantial increase in the company’s top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Holistic Profitability Examination:

• Gross Margin: Achieving a high gross margin of 60.78%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Red Rock Resorts’s EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 0.49.

Debt Management: Red Rock Resorts’s debt-to-equity ratio is notably higher than the industry average. With a ratio of 19.63, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 20.91 is lower than the industry average, indicating potential undervaluation for the 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 a lower-than-industry-average EV/EBITDA ratio of 8.71, Red Rock Resorts presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: Reflecting a smaller scale, the company’s market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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Delving Into the Significance of Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor’s decision-making process.

Within the legal framework, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Exploring Key Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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 signals 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.