Boyd Gaming (NYSE:BYD) Shares Gap Down on Disappointing Earnings

Shares of Boyd Gaming Corporation (NYSE:BYD) gapped down prior to trading on Friday following a weaker than expected earnings announcement. The stock had previously closed at $89.15, but opened at $82.55. Boyd Gaming shares last traded at $84.74, with a volume of 180,360 shares traded.

The company reported $1.60 earnings per share for the quarter, missing the consensus estimate of $1.76 by ($0.16). Boyd Gaming had a return on equity of 26.53% and a net margin of 44.84%.The firm had revenue of $997.36 million during the quarter, compared to analysts’ expectations of $1.04 billion. During the same quarter in the prior year, the company posted $1.62 earnings per share. Boyd Gaming’s quarterly revenue was up .6% compared to the same quarter last year.

Boyd Gaming Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Monday, March 16th were issued a $0.20 dividend. The ex-dividend date was Monday, March 16th. This is an increase from Boyd Gaming’s previous quarterly dividend of $0.18. This represents a $0.80 annualized dividend and a dividend yield of 1.0%. Boyd Gaming’s dividend payout ratio is presently 3.52%.

Boyd Gaming declared that its Board of Directors has initiated a stock buyback program on Thursday, April 23rd that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to repurchase up to 7.7% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

Key Boyd Gaming News

Here are the key news stories impacting Boyd Gaming this week:

• Positive Sentiment: Board authorized a $500 million share repurchase program, signaling management views the stock as undervalued; that support can underpin the share price over time. Read More.
• Positive Sentiment: Company repurchased roughly $155 million of common stock during the quarter, showing active capital returns even after the disappointing quarter. Read More.
• Positive Sentiment: Reported strong trailing profitability metrics (reported net margin and ROE remain healthy), providing a financial cushion versus peers. Read More.
• Neutral Sentiment: Management reiterated online EBITDAR guidance ($30M–$35M) and outlined a sizeable 2026 capex plan ($650M–$700M) — important for growth and maintenance but adds near-term cash needs. Read More.
• Neutral Sentiment: Analyst reactions are mixed: some firms trimmed targets (Stifel, Mizuho lowered targets) while others nudged targets higher (JPMorgan raised to $90), leaving consensus views split. Expect further target revisions as analysts digest regional trends. Read More.
• Negative Sentiment: Q1 results missed estimates: adjusted EPS ~$1.60 (consensus ~ $1.76) and revenue ~ $997M vs. higher expectations — the miss drove immediate selling pressure. Read More.
• Negative Sentiment: Adjusted EBITDAR declined year-over-year and analysts specifically flagged softness in Las Vegas locals and certain markets — a margin and volume concern that reduces near-term earnings visibility. Read More.
• Negative Sentiment: Notable insider selling and sizable institutional re-allocations reported in recent quarters add to investor caution. Read More.

Analysts Set New Price Targets

BYD has been the topic of a number of research reports. Stifel Nicolaus cut their target price on shares of Boyd Gaming from $95.00 to $91.00 and set a “hold” rating on the stock in a research report on Friday. Mizuho lowered their price target on shares of Boyd Gaming from $99.00 to $96.00 and set an “outperform” rating for the company in a research report on Friday. Citigroup increased their price objective on shares of Boyd Gaming from $86.00 to $90.00 and gave the company a “neutral” rating in a research note on Thursday, April 16th. Weiss Ratings reissued a “buy (b)” rating on shares of Boyd Gaming in a report on Monday, December 29th. Finally, Barclays reduced their price objective on shares of Boyd Gaming from $87.00 to $86.00 and set an “equal weight” rating for the company in a research note on Friday. Five analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat, Boyd Gaming presently has a consensus rating of “Hold” and an average price target of $92.08.

Insider Buying and Selling at Boyd Gaming

In other Boyd Gaming news, Director William R. Boyd sold 30,000 shares of the stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $84.84, for a total transaction of $2,545,200.00. Following the completion of the sale, the director directly owned 1,930,447 shares of the company’s stock, valued at approximately $163,779,123.48. This represents a 1.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Stephen S. Thompson sold 19,530 shares of the firm’s stock in a transaction dated Friday, February 27th. The shares were sold at an average price of $83.59, for a total transaction of $1,632,512.70. Following the completion of the sale, the insider owned 22,009 shares in the company, valued at $1,839,732.31. This represents a 47.02% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 73,454 shares of company stock valued at $6,231,827. 22.82% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Boyd Gaming

Institutional investors have recently bought and sold shares of the company. Deprince Race & Zollo Inc. purchased a new position in Boyd Gaming in the first quarter worth $21,810,000. Foster & Motley Inc. lifted its holdings in shares of Boyd Gaming by 19.5% during the 1st quarter. Foster & Motley Inc. now owns 98,730 shares of the company’s stock valued at $8,114,000 after purchasing an additional 16,119 shares during the last quarter. Louisiana State Employees Retirement System acquired a new stake in shares of Boyd Gaming in the 1st quarter worth $1,381,000. Blue Trust Inc. boosted its position in shares of Boyd Gaming by 23.0% in the 1st quarter. Blue Trust Inc. now owns 653 shares of the company’s stock worth $54,000 after purchasing an additional 122 shares in the last quarter. Finally, SG Americas Securities LLC grew its stake in Boyd Gaming by 426.0% during the 1st quarter. SG Americas Securities LLC now owns 78,616 shares of the company’s stock worth $6,461,000 after buying an additional 63,669 shares during the last quarter. 76.81% of the stock is currently owned by institutional investors and hedge funds.

Boyd Gaming Trading Down 5.9%

The company has a 50 day moving average of $83.82 and a two-hundred day moving average of $83.47. The stock has a market capitalization of $6.32 billion, a PE ratio of 3.68, a P/E/G ratio of 1.86 and a beta of 1.19. The company has a debt-to-equity ratio of 0.78, a quick ratio of 0.52 and a current ratio of 0.54.

Boyd Gaming Company Profile

Boyd Gaming Corporation (NYSE: BYD) is a diversified hospitality and gaming company headquartered in Las Vegas, Nevada. The company develops, owns and operates a portfolio of branded gaming and entertainment properties, including casinos, hotels, restaurants and meeting facilities. Boyd Gaming’s offerings range from slot machines and table games to live entertainment, dining concepts and convention space, designed to appeal to both regional and destination visitors.

Founded in 1975 by its namesake, William S.