Boyd Gaming (NYSE:BYD) Shares Gap Up Following Better-Than-Expected Earnings

Key Points

• Boyd Gaming shares opened at $85.10, significantly higher than their previous close of $82.32, following a strong earnings report.
• The company reported an earnings per share (EPS) of $1.87, surpassing analyst estimates of $1.67 and achieving a revenue of $1.03 billion for the quarter.
• Boyd Gaming declared a quarterly dividend of $0.18 per share, contributing to an annualized dividend yield of 0.86%.
• Analysts have given Boyd Gaming an average rating of "Hold" with a price target of $84.85, with some firms raising their price objectives significantly.

Shares of Boyd Gaming Corporation (NYSE:BYD - Get Free Report) gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $82.32, but opened at $85.10. Boyd Gaming shares last traded at $83.18, with a volume of 157,898 shares trading hands.

The company reported $1.87 EPS for the quarter, topping analysts' consensus estimates of $1.67 by $0.20. Boyd Gaming had a net margin of 13.96% and a return on equity of 38.34%. The firm had revenue of $1.03 billion for the quarter, compared to analyst estimates of $976.81 million. During the same quarter in the prior year, the firm earned $1.58 EPS. The company's revenue was up 6.9% on a year-over-year basis.

Boyd Gaming Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, July 15th. Stockholders of record on Monday, June 16th were given a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a dividend yield of 0.86%. The ex-dividend date was Monday, June 16th. Boyd Gaming's dividend payout ratio is 11.75%.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on BYD shares. Raymond James Financial lifted their price objective on shares of Boyd Gaming from $81.00 to $85.00 and gave the stock an "outperform" rating in a research note on Monday, June 30th. JPMorgan Chase & Co. initiated coverage on shares of Boyd Gaming in a research note on Monday, June 23rd. They issued a "neutral" rating and a $79.00 target price for the company. Barclays upped their target price on shares of Boyd Gaming from $73.00 to $87.00 and gave the company an "equal weight" rating in a research note on Friday, July 18th. Truist Financial lifted their price objective on shares of Boyd Gaming from $85.00 to $100.00 and gave the company a "buy" rating in a report on Wednesday, July 16th. Finally, Susquehanna downgraded shares of Boyd Gaming from a "positive" rating to a "neutral" rating and lifted their price objective for the company from $76.00 to $86.00 in a report on Friday, July 11th. One research analyst has rated the stock with a sell rating, six have assigned a hold rating and eight have issued a buy rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average price target of $84.85.

Hedge Funds Weigh In On Boyd Gaming

Several institutional investors and hedge funds have recently modified their holdings of BYD. Advisors Asset Management Inc. boosted its position in shares of Boyd Gaming by 56.8% in the first quarter. Advisors Asset Management Inc. now owns 541 shares of the company's stock valued at $36,000 after acquiring an additional 196 shares during the period. CoreCap Advisors LLC boosted its position in shares of Boyd Gaming by 91.0% in the fourth quarter. CoreCap Advisors LLC now owns 573 shares of the company's stock valued at $42,000 after acquiring an additional 273 shares during the period. GAMMA Investing LLC boosted its position in shares of Boyd Gaming by 68.0% in the first quarter. GAMMA Investing LLC now owns 773 shares of the company's stock valued at $51,000 after acquiring an additional 313 shares during the period. Parallel Advisors LLC boosted its position in shares of Boyd Gaming by 24.5% in the second quarter. Parallel Advisors LLC now owns 685 shares of the company's stock valued at $54,000 after acquiring an additional 135 shares during the period. Finally, UMB Bank n.a. boosted its position in shares of Boyd Gaming by 156.0% in the first quarter. UMB Bank n.a. now owns 1,006 shares of the company's stock valued at $66,000 after acquiring an additional 613 shares during the period. 76.81% of the stock is currently owned by institutional investors and hedge funds.

Boyd Gaming Price Performance

The company's 50-day moving average is $77.70 and its two-hundred day moving average is $73.48. The company has a debt-to-equity ratio of 2.57, a current ratio of 0.80 and a quick ratio of 0.76. The firm has a market cap of $6.82 billion, a P/E ratio of 13.60 and a beta of 1.26.

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.

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