Short Interest in Boyd Gaming Corporation Surges 22.9% in December

Boyd Gaming Corporation (NYSE: BYD) experienced a notable increase in short interest in December, rising by a substantial 22.9%. As of December 15, 2023, the total short interest reached 3,231,662 shares, up from 2,628,781 shares on November 30, 2023. This surge represents approximately 5.3% of the company’s total shares. With an average daily trading volume of 750,277 shares, the short-interest ratio now stands at 4.3 days.

Analysts Adjust Price Targets for Boyd Gaming

Recent analyst reports have provided varying perspectives on Boyd Gaming’s stock. Weiss Ratings reiterated a “buy (b)” rating for the shares, reflecting confidence in the company’s performance. Macquarie maintained a “neutral” rating while setting a price target of $90.00. Additionally, JPMorgan Chase & Co. raised its price target from $87.00 to $89.00, also assigning a “neutral” rating.

UBS Group has set a more ambitious target of $110.00 for Boyd Gaming shares. Citigroup, which began coverage of the stock, established a “neutral” rating with a price objective of $86.00. According to data from MarketBeat.com, Boyd Gaming currently holds a consensus rating of “Hold” and a consensus price target of $91.08, with five analysts recommending a Buy and ten suggesting a Hold.

Financial Performance and Dividend Declaration

Boyd Gaming recently revealed its quarterly earnings, reporting earnings per share of $1.35 for the period ending April 11, 2023. The company achieved a net margin of 46.02% and a return on equity of 34.63%, with total revenue amounting to $707.32 million. Analysts project that Boyd Gaming will post an earnings per share of 6.52 for the current fiscal year.

In a move to reward its shareholders, Boyd Gaming announced a quarterly dividend of $0.18 per share, payable on January 15, 2024. Shareholders of record as of December 15, 2023, will be eligible for this dividend, which translates to a $0.72 annualized dividend with a yield of 0.8%. The payout ratio stands at 3.15%.

Insider Transactions and Institutional Activity

In other developments, Director William R. Boyd sold 20,000 shares of the company’s stock on November 7, 2023, at an average price of $80.36, totaling approximately $1.6 million. Following this transaction, Boyd holds 1,960,447 shares valued at around $157.54 million. Insider ownership currently accounts for 27.94% of Boyd Gaming’s stock.

Institutional investors have also been active in adjusting their positions. Mitsubishi UFJ Asset Management Co. Ltd. increased its stake in Boyd Gaming by 219.8% during the second quarter, now owning 371 shares valued at $29,000. Advisors Asset Management Inc. raised its holdings by 56.8%, acquiring an additional 196 shares. Other firms, including Migdal Insurance & Financial Holdings Ltd. and True Wealth Design LLC, have also established new positions or increased their holdings.

Currently, institutional investors and hedge funds collectively own 76.81% of Boyd Gaming’s stock, reflecting strong support from larger investment entities.

Boyd Gaming Corporation, headquartered in Las Vegas, Nevada, is a diversified hospitality and gaming company with a portfolio that includes casinos, hotels, restaurants, and meeting facilities. Founded in 1975 by William R. Boyd, the company continues to cater to both regional and destination visitors through a range of gaming and entertainment offerings.