Members of the Boyd family and other high-ranking executives at Boyd Gaming (NYSE: BYD) have recently been selling shares of the casino stock.
Since February 20, Boyd insiders including Chairman Emeritus Bill Boyd — son of the company’s founder Sam Boyd — and CEO Keith Smith sold approximately $53.4 million worth of the Orleans operator’s shares. That works out to be about 3.2% of the company’s current market capitalization of $6.09 billion. Shares of the regional casino operator are off 5.33% over the past month.
According to a series of Form 4 filings with the Securities and Exchange Commission (SEC), Bill Boyd sold 500,000 shares of the gaming company from March 6 through March 11, grossing more than $32 million in proceeds in the process.
He officially left Boyd’s board of directors last May. Thanks to the California, Fremont Hotel & Casino, and Main Street Station, Boyd is the dominant operator in downtown Las Vegas. Its other Sin City venues include the Gold Coast, Orleans, Sam’s Town, and Suncoast.
Other Boyd Insiders Trim Stakes, Too
Marianne Boyd Johnson succeeded Bill Boyd as executive chairman of the casino company and she too has been a recent seller of the stock. SEC filings indicate that on Feb. 20 she sold 100,000 shares, garnering $6.46 million in gross proceeds.
On Feb. 28 and Feb. 29, President and CEO Keith Smith sold a total of 100,000 Boyd shares in two transactions, reaping about $6.4 million in gross proceeds along the way.
Insider selling at Boyd arrived as similar activity is taking place at other gaming companies. For example, recent SEC filings confirm some Wynn Resorts (NASDAQ: WYNN) executives have trimmed their exposure to that company’s shares, though in modest fashion.
Other insider selling at Boyd include moves by Director Thoman Randall (2,500 shares sold) and Chief Administrative Officer Stephen Thompson (20,000 shares sold). Those transactions occurred on March 7 and March 5, respectively.
Vice President William Boyd dumped 50,000 shares for $3.2 million on Feb. 28. The next day, CFO Josh Hirsberg sold 22,654 shares.
Boyd Still Supportive of Shareholders
Regulatory filings disclosing insider buying and selling don’t include reasons why those directors and executives are engaging in those transactions. In the case of Boyd Gaming, the large amount of insider selling in a condensed timeframe might be cause for alarm for some investors.
Still, the gaming company has displayed signs of commitment to shareholder rewards. A dividend increase announcement last month was the operator’s second in as many years and it repurchased $100 million in shares of its common stock in the fourth quarter. It has $326 million left on a previously announced buyback program.
Of the 14 sell-side analysts covering Boyd, seven rate it “strong buy” or “buy” and another six rate it “hold.” The consensus price target of $76.17 implies upside of 20.31% from today’s close.
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