Boyd Gaming CEO Sells $6.25M of Stock Amid Positive Revenue Trend and Strong Valuation Metrics

Keith Smith, President and CEO at Boyd Gaming, sold 75,000 shares for $6.25M. Boyd Gaming's shares are currently trading at $82.86, experiencing a 0.85% down. The company's revenue growth rate is 6.87%, gross margin is 50.97%, and EPS is 1.84, exceeding industry averages. The debt-to-equity ratio is 3.06, and valuation metrics such as P/E ratio, P/S ratio, and EV/EBITDA ratio are below industry norms, indicating potential undervaluation.

July 2, 2025

Keith Smith, President and CEO of Boyd Gaming (BYD), recently sold 75,000 shares for $6,252,250, according to a Form 4 filing submitted to the U.S. Securities and Exchange Commission. The transaction, which occurred on August 20, 2025, saw Boyd Gaming's stock price drop by 0.85% to $82.86. Despite this insider selling, the company's financial health remains robust, with a 6.87% revenue growth rate, a gross margin of 50.97%, and an earnings per share (EPS) of 1.84, all exceeding industry averages. The company's debt-to-equity ratio stands at 3.06, and valuation metrics such as the P/E ratio of 12.94, P/S ratio of 1.81, and EV/EBITDA ratio of 8.77 are below industry norms, indicating potential undervaluation.

Boyd Gaming, a multi-jurisdictional gaming company, operates gaming entertainment properties across the United States. The company's revenue growth over the past three months has been noteworthy, with a growth rate of approximately 6.87% as of June 30, 2025. Additionally, Boyd Gaming's earnings per share (EPS) outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.84. The company maintains a high gross margin of 50.97%, reflecting strong cost management and profitability compared to its peers. Boyd Gaming's debt-to-equity ratio is below the industry average, indicating a healthier balance between debt and equity. Despite recent insider selling, the company's valuation metrics suggest potential undervaluation, with a Price to Earnings (P/E) ratio of 13.0, a Price to Sales (P/S) ratio of 1.81, and an EV/EBITDA ratio of 8.8 [1].

Insider transactions, while not the sole determinant of investment choices, are a factor worth considering. Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction. The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise. However, insider sells may not always signal a bearish view and can be influenced by various factors.

Investors should note that Boyd Gaming's stock price drop following the insider selling does not necessarily indicate a negative outlook. The company's strong financial fundamentals and favorable valuation metrics suggest that it may be undervalued. As with any investment, it is essential to conduct thorough due diligence and consider individual risk tolerance and investment objectives.

References:
[1] https://www.benzinga.com/insights/news/25/08/47158414/insider-decision-marianne-boyd-johnson-offloads-8-42m-worth-of-boyd-gaming-stock
[2] https://www.investing.com/equities/nutrien