Some Boyd Gaming Corporation (NYSE:BYD) shareholders may be a little concerned to see that the Executive Vice President of Operations, Stephen Thompson, recently sold a substantial US$1.2m worth of stock at a price of US$61.18 per share. That sale reduced their total holding by 29% which is hardly insignificant, but far from the worst we've seen.
Boyd Gaming Insider Transactions Over The Last Year
Notably, that recent sale by Stephen Thompson is the biggest insider sale of Boyd Gaming shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$58.35. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
In total, Boyd Gaming insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Boyd Gaming
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Boyd Gaming insiders own about US$1.6b worth of shares (which is 24% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Boyd Gaming Insiders?
Insiders haven't bought Boyd Gaming stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But since Boyd Gaming is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Boyd Gaming that deserve your attention before buying any shares.
Of course Boyd Gaming may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.