Is Red Rock Resorts (RRR) Trading at a Compelling Price?
Baron Funds, an investment management company, released its “Baron Real Estate Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund rose 7.07% (Institutional Shares) compared to a 2.39% return for the MSCI US REIT Index (the “REIT Index”) and a 4.73% return for the MSCI USA IMI Extended Real Estate Index (the “MSCI Real Estate Index”). The firm is optimistic about the prospects for the stock market, public real estate securities, and the fund. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Real Estate Fund highlighted stocks like Red Rock Resorts, Inc. (NASDAQ:RRR) in the Q1 2023 investor letter. Headquartered in Las Vegas, Nevada, Red Rock Resorts, Inc. (NASDAQ:RRR) operates casino and entertainment properties. On June 27, 2023, Red Rock Resorts, Inc. (NASDAQ:RRR) stock closed at $46.52 per share. One-month return of Red Rock Resorts, Inc. (NASDAQ:RRR) was 2.04%, and its shares gained 38.58% of their value over the last 52 weeks. Red Rock Resorts, Inc. (NASDAQ:RRR) has a market capitalization of $2.708 billion.
Baron Real Estate Fund made the following comment about Red Rock Resorts, Inc. (NASDAQ:RRR) in its first quarter 2023 investor letter:
"Red Rock Resorts, Inc. (NASDAQ:RRR) is a leading real estate casino gaming company that owns and operates 100% of its real estate assets. Almost all the company’s cash flow is generated in the Las Vegas locals market, a real estate market that possesses highly favorable long-term demand and supply characteristics. The company has the capacity to double in size in the next five to seven years and maintains a strong balance sheet. Insiders own more than 40% of the company.
With shares valued at only 10 times 2024 EBITDA and a double-digit free-cash-flow yield, we think Red Rock’s share price is compelling."
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Red Rock Resorts, Inc. (NASDAQ:RRR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Red Rock Resorts, Inc. (NASDAQ:RRR) at the end of first quarter 2023 which was 15 in the previous quarter.
We discussed Red Rock Resorts, Inc. (NASDAQ:RRR) in another article and shared Diamond Hill Small Cap Fund's views on the company. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
