LAS VEGAS—Keith Smith, President and CEO of Boyd Gaming Corp (NYSE:BYD (SZ:002594)), recently reported the sale of 30,000 shares of the company’s common stock. The transaction, executed on November 19, 2024, was completed at a weighted average price of $71.77 per share, according to a filing with the Securities and Exchange Commission. This sale amounts to a total value of approximately $2.15 million.
Following the sale, Smith retains direct ownership of 1,131,202 shares of Boyd Gaming. Additionally, an indirect holding of 325 shares is registered under the ownership of his spouse. The transaction was executed in multiple trades with prices ranging from $71.63 to $71.90, as noted in the filing's footnotes.
In other recent news, Boyd Gaming Corporation reported a solid Q3 performance, marked by successful property-level margins and robust market trends in Southern Nevada. The company also noted significant progress on various expansion plans, including the Sky River Expansion, Cadence Crossing Casino (EPA:CASP), and a new venture in Norfolk, Virginia. The financial report also highlighted a disciplined approach to growth and shareholder returns, with Boyd Gaming repurchasing $202 million in stock and planning to continue a $100 million quarterly share repurchase program.
The Midwest and South segment, particularly the Treasure Chest Casino, experienced record performance. In addition, the company's online segment, in partnership with FanDuel, is projected to boost EBITDAR guidance. However, the Treasure Chest Casino's growth is not expected to extend beyond current levels, and hurricanes have somewhat impacted certain market areas.
Despite these challenges, Boyd Gaming remains committed to disciplined growth and operational efficiency. The company's diversification strategies, including recent acquisitions, are yielding positive results. These recent developments underline Boyd Gaming's strategic investments and focus on maintaining a strong financial position.
InvestingPro Insights
Keith Smith's recent sale of Boyd Gaming shares comes at a time when the company's stock is trading near its 52-week high, with a price that is 95.64% of its peak. This aligns with an InvestingPro Tip indicating that BYD has seen a "Strong return over the last three months," with data showing a 21.3% price total return over that period.
Despite the CEO's sale, there are positive signals for BYD. Another InvestingPro Tip reveals that "12 analysts have revised their earnings upwards for the upcoming period," suggesting confidence in the company's near-term performance. This optimism is reflected in BYD's current P/E ratio of 13.69, which is lower than its adjusted P/E ratio of 10.56 for the last twelve months as of Q3 2024, potentially indicating an undervaluation.
The company's financial health appears robust, with a gross profit margin of 61.96% for the last twelve months as of Q3 2024, which InvestingPro describes as "Impressive gross profit margins." This strong profitability is further supported by an operating income margin of 24.63% over the same period.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and metrics beyond those mentioned here. In fact, there are 11 more InvestingPro Tips available for Boyd Gaming, providing a deeper understanding of the company's financial position and market performance.
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