Amidst the shimmering allure of flashing slot machines and the frenetic bustle of casino floors, something stirs in the back offices of Boyd Gaming—one of the titans in the realm of chance and luck. High-ranking executives and the venerable members of the founding Boyd family have been shedding their shares, stirring whispers of change on the horizon for the storied casino stock (NYSE: BYD).
The dance of dollars and share certificates began subtly around February 20, as Boyd insiders, including Chairman Emeritus and progeny of the gaming legacy, Bill Boyd, along with CEO Keith Smith, orchestrated the sale of an impressive $53.4 million worth of shares held in the custodians of the Orleans Hotel & Casino’s fate. This sale represents a cool 3.2% of the company’s robust $6.09 billion market capitalization. The past month has seen the shares of this regional casino magnate dip by 5.33%, casting a rare shadow on its otherwise gleaming portfolio.
From March 6 through March 11, filings with the Securities and Exchange Commission (SEC) revealed a strategic move by Bill Boyd, who relinquished 500,000 shares, garnering a hefty sum in excess of $32 million. Having stepped back from the board of directors last May, his legacy is embossed on the very fabric of downtown Las Vegas with thriving establishments like the California, Fremont Hotel & Casino, and Main Street Station under the Boyd banner.
But the tide of selling is not confined to one man alone. Boyd Gaming’s throne, now occupied by Marianne Boyd Johnson, replacing Bill Boyd as executive chairman, also saw a reduction of stock, with February 20 witnessing the off-loading of 100,000 shares to the tune of $6.46 million. This familial trend cascaded down to President and CEO Keith Smith, who parted with 100,000 shares through two separate transactions by the close of February. Other Boyd executives, such as Director Thoman Randall and Chief Administrative Officer Stephen Thompson, followed suit in early March, albeit in a more modest fashion.
As curious as a dealer’s well-practiced shuffle, these systematic sales prompted speculation amongst the investor audience, with the gaming horizon particularly watchful of similar moves by executives at competing firms like Wynn Resorts (NASDAQ: WYNN).
Yet, amid the waves of insider sales, Boyd Gaming signals a beacon of commitment to its shareholders. A recent increase in dividends—the second in the crescendo of two years—coupled with a staunch buyback program that saw $100 million in shares repurchased last quarter, reaffirm the company’s valuation of its investor base. And with an arsenal of $326 million remaining in its buyback reserves, Boyd Gaming stands defiant in its support of those who have bet on its continued success.
In the gambit of the stock market, where analysts cast their own divining rods, the sentiment towards Boyd remains largely positive. With seven analysts signaling “strong buy” or “buy” and another six cautiously holding their cards to their chests, the $76.17 consensus price target teases a 20.31% increase from today’s close. In the high-stakes game of corporate fortunes, Boyd Gaming thus continues to shuffle the deck in anticipation of the next hand.
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