Boyd Gaming (NYSE:BYD) Reaches New 52-Week High - Still a Buy?

Key Points

• Boyd Gaming shares hit a new 52-week high on Thursday, trading as high as $89.98 after previously closing at $86.90, showing continued momentum in the stock.
• Wall Street sentiment is mixed but generally positive: the stock carries a Moderate Buy consensus with a $92.69 average target price, while recent analyst moves included a new $100 target from Benchmark and a downgrade in target from Mizuho to $96.
• The company recently reported weaker-than-expected quarterly results but also announced a quarterly dividend and a $500 million share buyback program, which may support the stock despite insider selling in recent months.

Boyd Gaming Corporation (NYSE:BYD - Get Free Report) shares hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $89.98 and last traded at $89.9050, with a volume of 82781 shares changing hands. The stock had previously closed at $86.90.

Wall Street Analyst Weigh In

Several brokerages recently commented on BYD. Mizuho reduced their target price on Boyd Gaming from $99.00 to $96.00 and set an "outperform" rating for the company in a research report on Friday, April 24th. Texas Capital upgraded shares of Boyd Gaming to a "strong-buy" rating in a research note on Wednesday, June 3rd. Weiss Ratings raised shares of Boyd Gaming from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, June 4th. JPMorgan Chase & Co. lifted their price target on shares of Boyd Gaming from $89.00 to $90.00 and gave the company a "neutral" rating in a report on Friday, April 24th. Finally, Benchmark initiated coverage on shares of Boyd Gaming in a research report on Monday. They issued a "buy" rating and a $100.00 price target on the stock. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat, Boyd Gaming has an average rating of "Moderate Buy" and a consensus target price of $92.69.

Boyd Gaming Stock Performance

The stock has a market cap of $6.56 billion, a P/E ratio of 3.87, a PEG ratio of 2.02 and a beta of 1.08. The stock has a fifty day simple moving average of $84.68 and a 200-day simple moving average of $84.39. The company has a quick ratio of 0.58, a current ratio of 0.60 and a debt-to-equity ratio of 0.90.

Boyd Gaming (NYSE:BYD - Get Free Report) last announced its quarterly earnings results on Thursday, April 23rd. The company reported $1.60 earnings per share for the quarter, missing analysts' consensus estimates of $1.76 by ($0.16). The firm had revenue of $997.36 million during the quarter, compared to analyst estimates of $1.04 billion. Boyd Gaming had a net margin of 44.84% and a return on equity of 25.63%. The business's revenue was up .6% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.62 earnings per share. Equities analysts expect that Boyd Gaming Corporation will post 7.32 earnings per share for the current fiscal year.

Boyd Gaming Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Monday, June 15th will be paid a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend is Monday, June 15th. Boyd Gaming's dividend payout ratio (DPR) is presently 3.51%.

Boyd Gaming declared that its board has authorized a stock buyback program on Thursday, April 23rd that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to purchase up to 7.7% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's management believes its stock is undervalued.

Insider Transactions at Boyd Gaming

In other news, Chairman Marianne Boyd Johnson sold 62,914 shares of Boyd Gaming stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $84.03, for a total transaction of $5,286,663.42. Following the transaction, the chairman owned 1,609,808 shares in the company, valued at $135,272,166.24. The trade was a 3.76% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Keith Smith sold 100,000 shares of the business's stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $85.90, for a total value of $8,590,000.00. Following the completion of the transaction, the chief executive officer owned 996,981 shares of the company's stock, valued at $85,640,667.90. This represents a 9.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 200,000 shares of company stock valued at $17,038,987. Insiders own 22.82% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of BYD. Altshuler Shaham Ltd acquired a new stake in shares of Boyd Gaming during the fourth quarter worth $25,000. Los Angeles Capital Management LLC bought a new position in Boyd Gaming during the 4th quarter worth about $25,000. Advisors Asset Management Inc. increased its holdings in Boyd Gaming by 56.8% during the 1st quarter. Advisors Asset Management Inc. now owns 541 shares of the company's stock worth $36,000 after purchasing an additional 196 shares in the last quarter. First Horizon Corp acquired a new stake in shares of Boyd Gaming in the 4th quarter valued at about $41,000. Finally, Bessemer Group Inc. raised its stake in shares of Boyd Gaming by 62.8% in the 1st quarter. Bessemer Group Inc. now owns 526 shares of the company's stock valued at $43,000 after purchasing an additional 203 shares during the period. Institutional investors own 76.81% of the company's stock.

Boyd Gaming Company Profile

Boyd Gaming Corporation NYSE: BYD is a diversified hospitality and gaming company headquartered in Las Vegas, Nevada. The company develops, owns and operates a portfolio of branded gaming and entertainment properties, including casinos, hotels, restaurants and meeting facilities. Boyd Gaming's offerings range from slot machines and table games to live entertainment, dining concepts and convention space, designed to appeal to both regional and destination visitors.

Founded in 1975 by its namesake, William S.

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