NEW YORK (TheStreet) -- Shares of Boyd Gaming Corp. (BYD) are higher by 5.72% to $11.38 after the company reached a settlement with Atlantic City regarding tax appeals dating back to 2011, the Wall Street Journal reports.
The settlement is dated June 5 and under its terms Atlantic City must refund $88.25 million to Boyd Gaming for the 2011, 2012, and 2013 tax years.
Boyd Gaming, a multi-jurisdictional gaming company, will also receive a tax-credit of $17.85 million for 2014.
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The company said it believes the change "will result in significantly lower expenses for real estate taxes as compared to 2013," the WSJ reports.
Boyd Gaming agreed not to contest property tax assessments for 2011 through 2015 as part of the deal.
Separately, 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 growth in earnings per share, compelling growth in net income and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and a generally disappointing performance in the stock itself."