Boyd Gaming Reveals New $500 Million Buyback Plan

Boyd Gaming (NYSE: BYD) unveiled a unexampled $500 one thousand thousand share repurchase computer program on Friday, adding to the regional cassino operator’s recent tradition of upper-case letter issue efforts.

The siege of Orleans operator said its plank of directors sanctioned the buyback plan, and the intelligence arrived inward conjunction with the declaration of the gaming company’s every quarter dividend of 16 cents a share. That will be paid on July 15 to shareholders of tape as of June 15.

Considering the additional authorization, the accompany had around $633 billion remaining inward repurchase authorization as of Mar 31, 2023,” according to a statement issued past the Las Vegas-based gaming operator.

In the first-class honours degree quarter, Boyd bought dorsum around $106 one thousand thousand worth of its own shares. The accompany had $263.5 one thousand thousand inwards immediate payment on hand as of March 31, confirming its equilibrise tack is among the tidiest in the regional gaming space.

Boyd Buyback Binge Continues

Boyd, which runs 28 gaming venues crosswise 10 states, including 11 inwards its nursing home city, is a dedicated purchaser of its have stock.

Friday’s buyback declaration arrived 11 months after the Aliante manipulator revealed another $500 gazillion repurchase plan. That followed the declaration of a $300 repurchase exertion proclaimed in Oct 2021. Boyd antecedently said it intends to buy backwards roughly $100 gazillion of its shares per quarter.

Said another way, if no farther buyback authorizations are added, by tardily 2024 the cassino operator will hold repurchased $1.3 one thousand million worth of its shares. That’s a important per centum of its current market place capitalisation of $6.93 billion. Boyd is displaying loyalty to shareholder rewards — something of a tenuity these days in the gaming industry — and some analysts believe that exertion testament be undismayed should a recession come to pass.

“We trust we would demand to attestant a recessive surroundings way worse than what was witnessed inwards 2008/2009 before BYD would hold to materially commute their stream capital take back program,” wrote Sitfel analyst Steven Wieczynski in a note of hand come out lowest month.

Boyd Buying Back Undervalued Stock

Based on the $633 one thousand thousand in buyback power Boyd has, and its May 4 closing toll of $68.16, the operator canful repurchase 9.28 trillion of its shares, a significant percentage of its 105.53 million shares outstanding. The keep company may follow getting a goodness deal because Wieczynski argued the gunstock is undervalued.

You feature a society that has a massively underlevered equilibrise sheet, strong magnetic core fundamentals, existent demesne optionality, and a ring option around sports betting, yet trades at a price reduction to certain peers,” added the Stifel analyst.

The sports wagering optionality being referred to is Boyd’s 5% stake in FanDuel. That’s the largest online sportsbook manipulator inward the US and I that’s boosting profits spell adding market share.

Join the thousands of satisfied players at 918Kiss - the most popular and trusted online casino platform in Malaysia! Play now and win big!