This Insider Has Just Sold Shares In Boyd Gaming

Some Boyd Gaming Corporation (NYSE:BYD) shareholders may be a little concerned to see that the Executive Chairman, Marianne Johnson, recently sold a substantial US$7.7m worth of stock at a price of US$77.64 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.9%.

Check out our latest analysis for Boyd Gaming

The Last 12 Months Of Insider Transactions At Boyd Gaming

Over the last year, we can see that the biggest insider sale was by the Chairman Emeritus, William Boyd, for US$16m worth of shares, at about US$63.78 per share. That means that even when the share price was below the current price of US$79.42, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 1.8% of William Boyd's holding.

Boyd Gaming insiders didn't buy any shares 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!

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Insider Ownership

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. It's great to see that Boyd Gaming insiders own 26% of the company, worth about US$1.8b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Boyd Gaming Tell Us?

Insiders haven't bought Boyd Gaming stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But since Boyd Gaming is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of 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. When we did our research, we found 3 warning signs for Boyd Gaming (1 is concerning!) that we believe deserve your full attention.

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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 of direct interests only, but not derivative transactions or indirect interests.

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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.