Boyd Gaming Corporation (BYD) Is Strong On High Volume Today

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Boyd Gaming Corporation ( BYD) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Boyd Gaming Corporation as such a stock due to the following factors:

  • BYD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.9 million.
  • BYD has traded 302,343 shares today.
  • BYD is trading at 9.21 times the normal volume for the stock at this time of day.
  • BYD is trading at a new high 7.05% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on BYD:

Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company. It operates in five segments: Las Vegas, Downtown Las Vegas, Midwest and South, Peninsula, and Borgata. Currently there are no analysts that rate Boyd Gaming Corporation a buy, 1 analyst rates it a sell, and 9 rate it a hold.

The average volume for Boyd Gaming Corporation has been 1.3 million shares per day over the past 30 days. Boyd Gaming has a market cap of $1.4 billion and is part of the services sector and leisure industry. The stock has a beta of 1.55 and a short float of 7.1% with 6.28 days to cover. Shares are up 2.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Boyd Gaming Corporation as a hold. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

Highlights from the ratings report include:
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • BOYD GAMING CORP has improved earnings per share by 32.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, BOYD GAMING CORP continued to lose money by earning -$0.48 versus -$0.87 in the prior year. This year, the market expects an improvement in earnings ($0.28 versus -$0.48).
  • 40.12% is the gross profit margin for BOYD GAMING CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -6.09% is in-line with the industry average.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, BOYD GAMING CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The debt-to-equity ratio is very high at 7.90 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, BYD has a quick ratio of 0.54, this demonstrates the lack of ability of the company to cover short-term liquidity needs.

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