Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Disclosed on February 29, Keith Smith, President and CEO at Boyd Gaming (NYSE:BYD), executed a substantial insider sell as per the latest SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Smith sold 100,000 shares of Boyd Gaming. The total transaction amounted to $6,413,500.
At Friday morning, Boyd Gaming shares are down by 2.41%, trading at $64.53.
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.
Breaking Down Boyd Gaming's Financial Performance 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 competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Insights into Profitability:
- Gross Margin: Achieving a high gross margin of 52.9%, the company performs well in terms of cost management and profitability within its sector.
- Earnings per Share (EPS): Boyd Gaming's EPS reflects a decline, falling below the industry average with a current EPS of 0.94.
Valuation Metrics:
- Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 10.81, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
- Price to Sales (P/S) Ratio: The current P/S ratio of 1.79 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): With an EV/EBITDA ratio lower than industry averages at 8.28, Boyd Gaming could be considered undervalued.
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Why Insider Transactions Are Important Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.
In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.
Unlocking the Meaning of Transaction Codes When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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.
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