Sell Alert: Josh Hirsberg Cashes Out $1.47M In Boyd Gaming Stock

On March 1, a recent SEC filing unveiled that Josh Hirsberg, CFO at Boyd Gaming BYD made an insider sell.

What Happened: Hirsberg opted to sell 22,654 shares of Boyd Gaming, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The transaction's total worth stands at $1,466,846.

Boyd Gaming's shares are actively trading at $66.13, experiencing a down of 0.0% during Friday's morning session.

Discovering Boyd Gaming: A Closer Look

Boyd Gaming Corp is a multi-jurisdictional gaming company. The company operates wholly-owned gaming entertainment properties (casino space, slot machines, table games, and hotel rooms) in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania. Geographical regions separate its business segments: Las Vegas Locals, Downtown Las Vegas, Midwest and South, and Online. Midwest and South hold the key number of entertainment properties, and it generate the majority of sales for the company.

Boyd Gaming: Delving into Financials

Positive Revenue Trend: Examining Boyd Gaming's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 3.41% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Key Profitability Indicators:

• Gross Margin: The company maintains a high gross margin of 52.9%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Boyd Gaming exhibits below-average bottom-line performance with a current EPS of 0.94.

Debt Management: Boyd Gaming's debt-to-equity ratio is below the industry average. With a ratio of 2.14, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 10.81 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.79, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 8.28 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Why Insider Transactions Are Important

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

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.

A Closer Look at Important Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of Boyd Gaming's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.