Insider Transaction: Christine J Spadafor Sells $74K Worth Of Boyd Gaming Shares

Christine J Spadafor, Board Member at Boyd Gaming BYD, disclosed an insider sell on August 29, according to a recent SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Spadafor sold 1,242 shares of Boyd Gaming. The total transaction amounted to $74,967.

Tracking the Friday's morning session, Boyd Gaming shares are trading at $59.93, showing a down of 0.0%.

All You Need to Know About Boyd Gaming

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.

Financial Insights: Boyd Gaming

Revenue Growth: Boyd Gaming's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 5.51%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Navigating Financial Profits:

• Gross Margin: The company sets a benchmark with a high gross margin of 53.77%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Boyd Gaming's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.47.

Debt Management: Boyd Gaming's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 2.18.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: Boyd Gaming's P/E ratio of 11.57 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.55 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 8.26, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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Why Insider Activity Matters in Finance

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

A Deep Dive into Insider Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes 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.