Keith Smith Takes Money Off The Table, Sells $2.94M In Boyd Gaming Stock

Revealing a significant insider sell on November 14, Keith Smith, President and CEO at Boyd Gaming BYD, as per the latest SEC filing.

What Happened: After conducting a thorough analysis, Smith sold 40,000 shares of Boyd Gaming. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total transaction value is $2,939,600.

In the Friday's morning session, Boyd Gaming's shares are currently trading at $73.51, experiencing a up of 0.68%.

Delving into Boyd Gaming's Background

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

Revenue Growth: Boyd Gaming's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 6.43%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Exploring Profitability:

• Gross Margin: Achieving a high gross margin of 51.95%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Boyd Gaming's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.43.

Debt Management: Boyd Gaming's debt-to-equity ratio is below the industry average. With a ratio of 2.35, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 13.88 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 1.82, 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): With a lower-than-industry-average EV/EBITDA ratio of 9.18, Boyd Gaming presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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Unmasking the Significance of Insider Transactions

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Cracking Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously 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.

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