Dumping Boyd Gaming Corp. (NYSE: BYD) shares by some hedge funds seemed the only options in April through June due to stock price fall. Nevertheless, now that may appear to be a mistake.
Boyd Gaming Corp. operates several casinos in Los Angeles, and this year, its stock has risen by 43 percent, making it among the best performing in the regional gaming equities. According to casino.org, the company’s stock had increased by 9.31 percent in the fourth quarter, meaning the hedge funds who dumped the shares through July to September just left when things were getting better.
Boyd stock is now 36 percent above its August downs and is just 6 percent below its highest. Boyd covered most of its third-quarter loss in October, but still, some hedge funds owner dumped its shares. According to Insider Monkey, Valinor Management cut off the most extensive stock worth $68.6 million, followed by Waterfront Capital Partners with $10.6 million.
Boyd Gaming is still above rival Red Rock Resort but below Eldorado Resorts. The hedge fund owner with the most significant shares in Boyd is Paul Reeder’s PAR Capital Management. He is currently the top hedge fund holding $58.1 million of stock. Mario Gabelli’s GAMCO Investors follows with $39.3 million of the stock.
The revival of Boyd has proven that the past does not define the future. There is unsurprisingly catalyst that is propelling Boyd stock.
However, they still lie below the Wall Street forecast of $34.54 by 15.1 percent. If Boyd stock continues rising, then analysts might be forced to change their estimates as the shares prices continue to rise. Sports betting market and gambling in Las Vegas are the main reasons cited for the strength of stock in the US economy.