Boyd Gaming (NYSE:BYD) Shares Gap Up Following Strong Earnings

Shares of Boyd Gaming Co. (NYSE:BYD) gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $58.53, but opened at $63.50. Boyd Gaming shares last traded at $59.99, with a volume of 190,518 shares trading hands.

The company reported $1.58 EPS for the quarter, beating analysts’ consensus estimates of $1.47 by $0.11. Boyd Gaming had a net margin of 14.91% and a return on equity of 34.76%. The business had revenue of $967.50 million for the quarter, compared to the consensus estimate of $909.49 million. During the same quarter last year, the firm posted $1.58 EPS. The company’s revenue for the quarter was up 5.5% on a year-over-year basis.

Boyd Gaming Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, July 15th. Investors of record on Saturday, June 15th were paid a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a yield of 1.13%. The ex-dividend date was Friday, June 14th. Boyd Gaming’s dividend payout ratio (DPR) is 12.21%.

Boyd Gaming announced that its Board of Directors has initiated a stock repurchase plan on Monday, May 13th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 9.5% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s management believes its shares are undervalued.

Analyst Ratings Changes

Several research firms have recently commented on BYD. Morgan Stanley reduced their price target on Boyd Gaming from $68.00 to $66.00 and set an “equal weight” rating for the company in a research report on Friday, July 12th. Mizuho lowered their price target on shares of Boyd Gaming from $80.00 to $78.00 and set a “buy” rating on the stock in a report on Friday, April 26th. Argus lowered shares of Boyd Gaming from a “buy” rating to a “hold” rating in a research note on Wednesday, May 1st. JPMorgan Chase & Co. cut shares of Boyd Gaming from an “overweight” rating to a “neutral” rating and decreased their target price for the company from $80.00 to $67.00 in a research report on Friday, April 26th. Finally, Royal Bank of Canada cut their price target on shares of Boyd Gaming from $337.00 to $308.00 and set an “outperform” rating on the stock in a report on Thursday, May 16th. Seven research analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $90.92.

Insiders Place Their Bets

In other Boyd Gaming news, Director Christine J. Spadafor sold 1,874 shares of Boyd Gaming stock in a transaction dated Wednesday, May 22nd. The stock was sold at an average price of $53.38, for a total transaction of $100,034.12. Following the completion of the sale, the director now owns 2,338 shares of the company’s stock, valued at approximately $124,802.44. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 27.94% of the company’s stock.

Institutional Trading of Boyd Gaming

Institutional investors and hedge funds have recently bought and sold shares of the business. Rakuten Securities Inc. purchased a new position in shares of Boyd Gaming during the fourth quarter worth $30,000. Allspring Global Investments Holdings LLC grew its position in Boyd Gaming by 57.4% during the first quarter. Allspring Global Investments Holdings LLC now owns 518 shares of the company’s stock valued at $35,000 after buying an additional 189 shares during the period. Parkside Financial Bank & Trust increased its holdings in Boyd Gaming by 57.4% in the fourth quarter. Parkside Financial Bank & Trust now owns 647 shares of the company’s stock valued at $41,000 after buying an additional 236 shares in the last quarter. Blue Trust Inc. raised its position in shares of Boyd Gaming by 58.2% in the second quarter. Blue Trust Inc. now owns 783 shares of the company’s stock worth $43,000 after acquiring an additional 288 shares during the period. Finally, Principal Securities Inc. purchased a new stake in shares of Boyd Gaming during the 4th quarter worth about $50,000. 76.81% of the stock is currently owned by institutional investors and hedge funds.

Boyd Gaming Price Performance

The company has a current ratio of 0.80, a quick ratio of 0.77 and a debt-to-equity ratio of 1.61. The stock has a 50-day moving average price of $54.66 and a 200 day moving average price of $59.79. The stock has a market capitalization of $5.70 billion, a price-to-earnings ratio of 10.51 and a beta of 1.58.

Boyd Gaming Company Profile

Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania. The company operates through Las Vegas Locals, Downtown Las Vegas, Midwest & South, and Online segments.