Red Rock Resorts COO Nichols Kord Exercises Options, Sells Shares

What Happened
Nichols Kord, Chief Operating Officer of Red Rock Resorts (RRR), exercised 27,000 stock options on Aug 11, 2026 at $24.98 per share (cost $674,460). All 27,000 resulting shares were disposed: 17,209 shares were withheld to cover taxes (valued at $1,069,453) and 9,791 shares were sold in the open market on Aug 12, 2026 (proceeds $616,823). In aggregate the disposals generated approximately $1.69 million in proceeds, so after the exercise cost the net cash benefit was about $1.01 million. The filing also reports a derivative conversion entry for the 27,000 shares (reported at $0), reflecting the option-to-stock conversion.

Key Details

• Transaction dates: Aug 11, 2026 (exercise and tax withholding) and Aug 12, 2026 (open-market sale). Filing date: Aug 13, 2026 (timely).
• Exercise: 27,000 shares @ $24.98 = $674,460 (code M).
• Tax withholding (disposition): 17,209 shares @ weighted avg ~$62.15 = $1,069,453 (code F). Footnote: shares sold in multiple trades at $62.96–$63.02; weighted avg reported.
• Open-market sale: 9,791 shares @ $63.00 = $616,823 (code S).
• Net effect: 27,000 shares acquired by exercise and 27,000 shares disposed—no net new shares retained from this transaction.
• Footnotes: F1 explains weighted-average sale pricing and availability of per-price breakdown on request; F2 notes the option had previously vested per its schedule.
• Shares owned after transaction: not specified in the provided filing excerpt.

Context
This was an option exercise followed by withholding to cover tax obligations and a market sale of the remaining shares — commonly called a cashless exercise. Such transactions are often routine (tax-driven) rather than an explicit bullish or bearish signal. All entries appear to have been reported within the normal Form 4 window.