We wouldn't blame Boyd Gaming Corporation (NYSE:BYD) shareholders if they were a little worried about the fact that Marianne Johnson, the Executive Chairman recently netted about US$4.4m selling shares at an average price of US$60.00. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.6%.
The Last 12 Months Of Insider Transactions At Boyd Gaming
In the last twelve months, the biggest single sale by an insider was when the Chairman Emeritus, William Boyd, sold US$16m worth of shares at a price of US$63.78 per share. So we know that an insider sold shares at around the present share price of US$59.89. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Boyd Gaming better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Boyd Gaming insiders own about US$1.4b worth of shares (which is 25% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Boyd Gaming Insider Transactions Indicate?
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. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 3 warning signs with Boyd Gaming and understanding these should be part of your investment process.
But note: Boyd Gaming may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.