7. Boyd Gaming Corporation (NYSE:BYD)
Number of Hedge Fund Holders: 33
Boyd Gaming Corporation (NYSE:BYD) is a casino gaming and hospitality company that operates 28 brick-and-mortar gaming properties across 10 states in America. Its key operations include casinos, restaurants, top-tier hotels, and other hospitality entertainment-related services.
The casino segment includes renowned venues such as Gold Coast Hotel and Casino and Sam’s Town Hotel in Las Vegas and Online Gaming. It also has an online gaming service platform, which provides casino and sports betting games in partnership with FanDuel.
The company reported steady revenue for the second quarter of 2024 with its Las Vegas and Downtown segments showing positive trends. The revenue of $967.5 million was up 5.5% year-over-year and outperformed analysts’ estimates by more than $58 million.
Boyd Gaming Corporation (NYSE:BYD) is based in Nevada. Keith Smith, President and Chief Executive Officer, believes the company has been and will take advantage of increased visitors in Las Vegas and from stabilizing the economy of Nevada. During the earnings call, Keith Smith mentioned over 41 million people visited Las Vegas over the last 12 months which was up 2.6% year-over-year. Moreover, Southern Nevada’s gaming revenues were at a record high of $13.5 billion during the same time. Management believes they are well positioned to capitalize on these tailwinds to ensure long-term growth for the company.
To ensure the success the company opened a new land-based casino at Treasure Chest on June 6, which is already off to a great start with double-digit revenue growth year-over-year. Moreover, the online segment, which was one of the major contributors to the latest quarter revenue is projected to generate $65 million to $70 million in EBITDAR (Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent) during the year.
BYD ended the quarter with $281 million available in cash, indicating prospects of short-term growth. The number of hedge funds holding the stocks has grown from 29 during the first quarter to 33 in Q2 2024. The total positions amounted to $675 million. HG Vora Capital Management is the top shareholder with a position worth $220.4 million.
Baron Discovery Fund made the following comment about Boyd Gaming Corporation (NYSE:BYD) in its Q4 2022 investor letter:
“Shares of U.S. regional casino operator Boyd Gaming Corporation (NYSE:BYD), increased in the fourth quarter due to stable consumer visitation and spending levels despite an uncertain macro environment. The company continued to generate strong free cash flow that it is using to invest into its casinos, pay out dividends, and buy back shares. The company has repurchased 8% of its shares over the past year while paying out a 1% dividend. We believe Boyd can withstand any bumps in the economy given its strong balance sheet and free cash flow. We also don’t think Boyd’s share price reflects its 5% ownership in online bookmaker FanDuel. We continue to be positive on the company’s long-term prospects.”
