Morgan Stanley Issues Pessimistic Forecast for Boyd Gaming (NYSE:BYD) Stock Price

Key Points

• Morgan Stanley lowered Boyd Gaming’s price target to $89 from $90 and maintained an “equal weight” rating, implying only 0.44% upside from the stock’s $88.61 price.
• Analyst sentiment is mixed but leans toward caution: MarketBeat reports an average rating of “Hold” and an average price target of $94.69, while other firms have issued targets ranging from $87 to $100.
• Boyd Gaming beat quarterly EPS estimates, reporting $1.93 versus $1.89 expected, and has authorized a $500 million share buyback covering up to 7.7% of outstanding shares; however, insiders sold 200,000 shares over the past 90 days.

Boyd Gaming (NYSE:BYD - Get Free Report) had its target price dropped by equities research analysts at Morgan Stanley from $90.00 to $89.00 in a report released on Monday,Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Morgan Stanley's target price indicates a potential upside of 0.44% from the company's current price.

Other analysts have also recently issued reports about the stock. Benchmark started coverage on shares of Boyd Gaming in a research report on Monday, June 22nd. They set a "buy" rating and a $100.00 price target for the company. Stifel Nicolaus raised their target price on Boyd Gaming from $91.00 to $92.00 and gave the company a "hold" rating in a report on Friday. Texas Capital raised shares of Boyd Gaming to a "strong-buy" rating in a research report on Wednesday, June 3rd. Weiss Ratings upgraded shares of Boyd Gaming from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, June 4th. Finally, Barclays increased their price target on Boyd Gaming from $86.00 to $87.00 and gave the company an "equal weight" rating in a report on Friday. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and ten have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $94.69.

Boyd Gaming Trading Up 1.8%

Shares of NYSE BYD traded up $1.57 on Monday, reaching $88.61. 310,009 shares of the company traded hands, compared to its average volume of 966,728. The company has a current ratio of 0.60, a quick ratio of 0.58 and a debt-to-equity ratio of 0.90. The stock has a market capitalization of $6.59 billion, a PE ratio of 3.90, a P/E/G ratio of 2.06 and a beta of 1.07. The company has a 50 day moving average of $85.83 and a 200 day moving average of $84.84. Boyd Gaming has a fifty-two week low of $76.33 and a fifty-two week high of $91.00.

Boyd Gaming (NYSE:BYD - Get Free Report) last released its quarterly earnings data on Thursday, July 23rd. The company reported $1.93 earnings per share for the quarter, beating the consensus estimate of $1.89 by $0.04. Boyd Gaming had a return on equity of 22.29% and a net margin of 44.34%.The business had revenue of $1.03 billion for the quarter, compared to analyst estimates of $1.04 billion. During the same period in the previous year, the company posted $1.87 EPS. The company's revenue was up .0% compared to the same quarter last year. On average, equities research analysts forecast that Boyd Gaming will post 7.21 earnings per share for the current fiscal year.

Boyd Gaming announced that its board has initiated a stock buyback plan on Thursday, April 23rd that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the company to purchase up to 7.7% of its shares through open market purchases. Shares buyback plans are often an indication that the company's management believes its stock is undervalued.

Insider Transactions at Boyd Gaming

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

Institutional Investors Weigh In On Boyd Gaming

Hedge funds have recently modified their holdings of the stock. Invesco Ltd. boosted its stake in shares of Boyd Gaming by 118.2% in the 4th quarter. Invesco Ltd. now owns 1,427,828 shares of the company's stock valued at $121,708,000 after purchasing an additional 773,394 shares during the last quarter. Norges Bank purchased a new position in Boyd Gaming during the fourth quarter valued at approximately $58,763,000. UBS Group AG increased its holdings in shares of Boyd Gaming by 196.9% in the 4th quarter. UBS Group AG now owns 611,207 shares of the company's stock worth $52,099,000 after buying an additional 405,340 shares during the last quarter. Arbejdsmarkedets Tillaegspension bought a new stake in Boyd Gaming in the fourth quarter worth $24,675,000. Finally, Geode Capital Management LLC boosted its stake in shares of Boyd Gaming by 26.7% during the fourth quarter. Geode Capital Management LLC now owns 1,355,209 shares of the company's stock valued at $115,537,000 after purchasing an additional 285,719 shares during the period. 76.81% of the stock is owned by hedge funds and other institutional investors.

About Boyd Gaming

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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