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

Boyd Gaming Co. (NYSE:BYD) gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. 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 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.47 by $0.11. The company had revenue of $967.50 million during the quarter, compared to the consensus estimate of $909.49 million. Boyd Gaming had a net margin of 14.91% and a return on equity of 34.76%. During the same quarter in the prior year, the firm posted $1.58 earnings per share. Boyd Gaming’s revenue for the quarter was up 5.5% on a year-over-year basis.

Boyd Gaming Dividend Announcement

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

Boyd Gaming announced that its Board of Directors has authorized a share buyback plan on Monday, May 13th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the company to buy up to 9.5% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s management believes its shares are undervalued.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on BYD shares. Stifel Nicolaus lowered their target price on shares of Boyd Gaming from $71.00 to $65.00 and set a “hold” rating on the stock in a research report on Friday, April 26th. Mizuho lowered their price objective on shares of Boyd Gaming from $80.00 to $78.00 and set a “buy” rating on the stock in a research report on Friday, April 26th. Raymond James started coverage on shares of Boyd Gaming in a research note on Tuesday, May 21st. They issued an “outperform” rating and a $67.00 price objective on the stock. Deutsche Bank Aktiengesellschaft downgraded shares of Boyd Gaming from a “buy” rating to a “hold” rating and decreased their target price for the stock from $78.00 to $71.00 in a research note on Friday, April 26th. Finally, Royal Bank of Canada lowered their price target on Boyd Gaming from $337.00 to $308.00 and set an “outperform” rating on the stock in a report on Thursday, May 16th. Seven analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. According to data from MarketBeat.com, Boyd Gaming has a consensus rating of “Hold” and a consensus price target of $90.92.

Insider Activity at Boyd Gaming

In other news, Director Christine J. Spadafor sold 1,874 shares of the firm’s stock in a transaction that occurred on Wednesday, May 22nd. The stock was sold at an average price of $53.38, for a total value of $100,034.12. Following the completion of the sale, the director now directly owns 2,338 shares of the company’s stock, valued at approximately $124,802.44. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 27.94% of the stock is owned by insiders.

Hedge Funds Weigh In On Boyd Gaming

A number of large investors have recently made changes to their positions in BYD. Rakuten Securities Inc. acquired a new stake in shares of Boyd Gaming in the 4th quarter worth approximately $30,000. Allspring Global Investments Holdings LLC boosted 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 worth $35,000 after purchasing an additional 189 shares in the last quarter. Parkside Financial Bank & Trust grew 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 purchasing an additional 236 shares during the last quarter. Blue Trust Inc. increased 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 valued at $43,000 after buying an additional 288 shares in the last quarter. Finally, Principal Securities Inc. purchased a new position in shares of Boyd Gaming in the fourth quarter valued at $50,000. Hedge funds and other institutional investors own 76.81% of the company’s stock.

Boyd Gaming Stock Up 2.6 %

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 firm has a 50 day moving average price of $54.66 and a 200-day moving average price of $59.79. The firm has a market cap of $5.70 billion, a price-to-earnings ratio of 10.51 and a beta of 1.58.

About Boyd Gaming

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.