Why Boyd Gaming (BYD) Is Up Today

NEW YORK (TheStreet) -- Boyd Gaming (BYD) was gaining 15.4% to $13.63 Tuesday after activist hedge fund Elliott Associates disclosed its stake in the casino operator.

The hedge fund currently holds 4.99% of Boyd's common stock, with a 2.05% exposure to common shares via derivatives. Combined the Elliott says it has 7% economic exposure to Boyd, with 4.99% voting power.

By disclosing its stake in the company Elliott can seek meetings with Boyd's board or its management to discuss strategic alternatives. The hedge fund said it has no current plan or proposal to meet with management.

Recent investments by Elliott include Juniper Networks (JNPR) and Riverbed Technologies (RVBD).

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TheStreet Ratings team rates BOYD GAMING CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate BOYD GAMING CORP (BYD) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."

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