Insider Decision: William S Boyd Offloads $7.97M Worth Of Boyd Gaming Stock

On March 6, a recent SEC filing unveiled that William S Boyd, 10% Owner at Boyd Gaming BYD made an insider sell.

What Happened: Boyd's recent move involves selling 125,000 shares of Boyd Gaming. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value is $7,971,250.

Monitoring the market, Boyd Gaming's shares down by 0.0% at $63.04 during Thursday's morning.

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's Economic Impact: An Analysis

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. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Navigating Financial Profits:

• 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): Boyd Gaming's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 0.94.

Debt Management: Boyd Gaming's debt-to-equity ratio is below the industry average at 2.14, reflecting a lower dependency on debt financing and a more conservative financial approach.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 10.3 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 1.71, 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): Boyd Gaming's EV/EBITDA ratio at 8.02 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Why Insider Transactions Are Important

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Transaction Codes To Focus On

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a 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.