This Metric Says You Are Smart to Buy Boyd Gaming Corporation (BYD)

Boyd Gaming Corporation (NYSE:BYD) has experienced an increase in hedge fund sentiment lately.

To the average investor, there are a multitude of metrics investors can use to watch their holdings. A pair of the most innovative are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best fund managers can outpace their index-focused peers by a very impressive margin (see just how much).

Just as beneficial, optimistic insider trading activity is a second way to parse down the world of equities. As the old adage goes: there are many reasons for a corporate insider to drop shares of his or her company, but just one, very simple reason why they would initiate a purchase. Many academic studies have demonstrated the useful potential of this tactic if investors understand where to look (learn more here).

Consequently, let’s take a peek at the latest action surrounding Boyd Gaming Corporation (NYSE:BYD).

What does the smart money think about Boyd Gaming Corporation (NYSE:BYD)?

In preparation for this quarter, a total of 21 of the hedge funds we track were long in this stock, a change of 17% from the first quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their stakes meaningfully.

According to our comprehensive database, PAR Capital Management, managed by Paul Reeder and Edward Shapiro, holds the most valuable position in Boyd Gaming Corporation (NYSE:BYD). PAR Capital Management has a $68.7 million position in the stock, comprising 2.2% of its 13F portfolio. Coming in second is H Partners Management, managed by Rehan Jaffer, which held a $31.8 million position; the fund has 2.5% of its 13F portfolio invested in the stock. Remaining hedge funds that are bullish include Mario Gabelli’s GAMCO Investors, David Tepper’s Appaloosa Management LP and Dmitry Balyasny’s Balyasny Asset Management.

As industrywide interest jumped, key money managers were leading the bulls’ herd. Highline Capital Management, managed by Jacob Doft, established the most valuable position in Boyd Gaming Corporation (NYSE:BYD). Highline Capital Management had 7.1 million invested in the company at the end of the quarter. Brad Gerstner’s Altimeter Capital Management also initiated a $1.7 million position during the quarter. The following funds were also among the new BYD investors: Geoffrey Raynor’s Q Investments (Specter Holdings), Daniel S. Och’s OZ Management, and Robert Raiff’s Raiff Partners.

What have insiders been doing with Boyd Gaming Corporation (NYSE:BYD)?

Insider trading activity, especially when it’s bullish, is particularly usable when the company we’re looking at has seen transactions within the past 180 days. Over the latest 180-day time period, Boyd Gaming Corporation (NYSE:BYD) has experienced 1 unique insiders purchasing, and 7 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Boyd Gaming Corporation (NYSE:BYD). These stocks are Bluegreen Corporation (NYSE:BXG), The Marcus Corporation (NYSE:MCS), Marriott Vacations Worldwide Corp (NYSE:VAC), Ameristar Casinos, Inc. (NASDAQ:ASCA), and Pinnacle Entertainment, Inc (NYSE:PNK). All of these stocks are in the resorts & casinos industry and their market caps are closest to BYD’s market cap.