LAS VEGAS—William R. Boyd, a director at Boyd Gaming Corp (NYSE:BYD (SZ:002594)), recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Boyd sold a total of 100,000 shares over two days, amounting to approximately $7.06 million.
The first transaction took place on October 30, when Boyd sold 74,845 shares at a weighted average price of $70.97, totaling about $5.31 million. The shares were sold in multiple trades with prices ranging from $70.50 to $71.83. Following this transaction, Boyd held 1,513,125 shares indirectly through a trust.
On the following day, October 31, Boyd sold an additional 25,155 shares at a weighted average price of $69.35, generating proceeds of approximately $1.74 million. These shares were also sold in multiple trades, with prices ranging from $69.25 to $70.05. After this transaction, Boyd's indirect holdings stood at 1,487,970 shares.
The transactions were executed through the William R. Boyd Gaming Properties Trust, where Boyd serves as trustee, settlor, and beneficiary. Boyd Gaming Corp, headquartered in Las Vegas, operates a variety of gaming and entertainment properties across the United States.
In other recent news, Boyd Gaming Corporation reported substantial financial growth in its third-quarter earnings call, emphasizing its successful property-level margins, robust market trends in Southern Nevada, and significant progress on various expansion plans. Key takeaways include property-level margins exceeding 39%, record performance from the Midwest and South segment, particularly from Treasure Chest Casino, and a projected increase in EBITDAR guidance due to the online segment's partnership with FanDuel. Expansion plans include the Sky River Expansion, Cadence Crossing Casino, and a Norfolk, Virginia casino.
The company also repurchased $202 million in stock and plans to continue a $100 million quarterly share repurchase program while maintaining a leverage ratio of 2.5 times. Capital expenditures for 2024 are estimated at $400 million to $425 million. The company's future outlook focuses on disciplined growth and operational efficiency, with a projection of the online segment's EBITDA for 2024 at $105 million.
These are recent developments, and while EBITDAR margins are slightly down from 50% to 49% compared to the previous year, the company's diversification strategies, including recent acquisitions, are yielding positive results. The company's expansion plans, particularly in Virginia, and its partnership with FanDuel, are expected to contribute significantly to future growth.
InvestingPro Insights
While William R. Boyd's recent sale of 100,000 shares in Boyd Gaming Corp (NYSE:BYD) might raise eyebrows, a closer look at the company's financials and market performance reveals a more nuanced picture.
According to InvestingPro data, BYD's market capitalization stands at $6.29 billion, with a price-to-earnings ratio of 13.15. This relatively modest P/E ratio suggests that the stock may be reasonably valued compared to its earnings. Moreover, the company's revenue for the last twelve months as of Q3 2024 was $3.84 billion, with a healthy gross profit margin of 61.85%.
InvestingPro Tips highlight that BYD has been delivering strong returns, with a 19.17% price total return over the past three months and an impressive 29.47% over the last six months. This robust performance aligns with the company's solid financial metrics and may explain why the stock is trading at 95.04% of its 52-week high.
It's worth noting that 13 analysts have revised their earnings upwards for the upcoming period, indicating positive sentiment about BYD's future prospects. This optimism is further supported by the company's profitability over the last twelve months and analysts' predictions of continued profitability this year.
For investors seeking more comprehensive insights, InvestingPro offers 7 additional tips that could provide valuable context to Boyd's stock sale and the company's overall financial health.
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