Don't Ignore The Fact That This Insider Just Sold Some Shares In Boyd Gaming Corporation (NYSE:BYD)

By
Simply Wall St
Published
February 27, 2021
NYSE:BYD

We wouldn't blame Boyd Gaming Corporation (NYSE:BYD) shareholders if they were a little worried about the fact that William Boyd, the VP & Director recently netted about US$2.8m selling shares at an average price of US$56.25. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.5%.

Check out our latest analysis for Boyd Gaming

The Last 12 Months Of Insider Transactions At Boyd Gaming

In the last twelve months, the biggest single sale by an insider was when the Vice Chairman, Marianne Johnson, sold US$4.9m worth of shares at a price of US$24.90 per share. That means that an insider was selling shares at slightly below the current price (US$58.70). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 8.8% of Marianne Johnson's holding.

Over the last year, we can see that insiders have bought 102.00k shares worth US$1.6m. On the other hand they divested 754.01k shares, for US$24m. All up, insiders sold more shares in Boyd Gaming than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NYSE:BYD Insider Trading Volume February 27th 2021

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Boyd Gaming

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Boyd Gaming insiders own 23% of the company, worth about US$1.5b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Boyd Gaming Tell Us?

Insiders sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Boyd Gaming is showing 3 warning signs in our investment analysis, and 1 of those is potentially serious...

But note: Boyd Gaming may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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