Short Interest in Boyd Gaming Corporation Surges 22.9% in December

Boyd Gaming Corporation (NYSE: BYD) experienced a significant rise in short interest during December 2023, with totals reaching 3,231,662 shares by December 15. This marked an increase of 22.9% from the November 30 figure of 2,628,781 shares, indicating heightened investor skepticism regarding the company’s stock performance. Approximately 5.3% of Boyd Gaming’s total shares are currently sold short, suggesting that a notable portion of the market is betting against the stock.

The short-interest ratio, based on an average daily trading volume of 750,277 shares, stands at 4.3 days. This metric provides insight into how many days it would take for all short positions to cover their trades at the current volume levels.

Analysts Adjust Price Targets for Boyd Gaming

In light of the recent changes in market dynamics, several analysts have revised their outlook on Boyd Gaming. Weiss Ratings reaffirmed a “buy (b)” rating for the company, reflecting confidence in its long-term prospects. Meanwhile, Macquarie maintained a “neutral” rating with a price target set at $90.00 in a report published on October 24.

JPMorgan Chase & Co. recently increased its price target from $87.00 to $89.00, also assigning a “neutral” rating. UBS Group went further, setting a price target of $110.00 on December 24. Additionally, Citigroup initiated coverage with a “neutral” rating and a target price of $86.00 on November 20.

Overall, five analysts have assigned a “buy” rating while ten have recommended holding the stock, leading to a consensus rating of “hold” and a target price of $91.08, according to data from MarketBeat.com.

Financial Performance and Upcoming Dividend

Boyd Gaming last reported its quarterly earnings on April 11, 2023, posting earnings per share of $1.35. The company achieved a net margin of 46.02% and a return on equity of 34.63%, with revenues totaling $707.32 million for the quarter. Analysts project that Boyd Gaming will post earnings of $6.52 per share for the current fiscal year.

In addition, Boyd Gaming recently declared a quarterly dividend of $0.18 per share, scheduled for payment on January 15, 2024. Shareholders of record as of December 15 will receive this dividend, which translates to an annual yield of 0.8%. The ex-dividend date is also set for December 15, with a payout ratio of 3.15%.

Insider Activity and Institutional Investment

In insider trading news, Director William R. Boyd sold 20,000 shares of the company on November 7 at an average price of $80.36, totaling approximately $1.6 million. Following this transaction, Boyd retains ownership of 1,960,447 shares, valued at around $157.5 million, reflecting a 1.01% decrease in his position.

On the institutional side, several significant shareholders have recently adjusted their stakes in Boyd Gaming. Mitsubishi UFJ Asset Management Co. Ltd. increased its holdings by 219.8% in the second quarter, now owning 371 shares valued at $29,000. Advisors Asset Management Inc. boosted its position by 56.8% in the first quarter, bringing its total to 541 shares worth $36,000.

Other notable movements include Migdal Insurance & Financial Holdings Ltd., which acquired a new position estimated at $39,000, and True Wealth Design LLC, which raised its holdings by 162.1% in the third quarter, now owning 532 shares valued at $46,000. Currently, 76.81% of Boyd Gaming’s stock is held by institutional investors and hedge funds.

Boyd Gaming Corporation, headquartered in Las Vegas, Nevada, operates a diversified portfolio of gaming and hospitality properties, including casinos, hotels, and restaurants. Founded in 1975 by William S. Boyd, the company continues to cater to both regional and destination visitors.