Making a noteworthy insider sell on November 4, Christine J Spadafor, Director at Boyd Gaming BYD, is reported in the latest SEC filing.

What Happened: Spadafor’s decision to sell 1,096 shares of Boyd Gaming was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the sale is $75,448.

The latest update on Tuesday morning shows Boyd Gaming shares down by 0.0%, trading at $68.31.

All You Need to Know About Boyd Gaming

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.

Key Indicators: Boyd Gaming’s Financial Health

Revenue Growth: Boyd Gaming’s revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 6.43%. This indicates a substantial increase in the company’s top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Profitability Metrics:

• Gross Margin: The company excels with a remarkable gross margin of 51.95%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Boyd Gaming’s EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.43.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 2.35.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: The P/E ratio of 12.99 is lower than the industry average, implying a discounted valuation for Boyd Gaming’s stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.7, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company’s EV/EBITDA ratio 8.79 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Uncovering the Importance of Insider Activity

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

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.

Unlocking the Meaning of Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies 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.