Boyd Gaming Corporation (NYSE: BYD) today announced plans to resume operations at 13 properties in Nevada, Missouri and Iowa, pending receipt of final regulatory approvals.
Casino stocks have had a rough year in 2020 due to coronavirus (COVID-19) shutdowns. However, some long-term gambling bulls believe business will get back to normal for gamblers as soon as casinos reopen.Two of the most popular regional U.S. casino operators are Boyd Gaming Corporation (NYSE: BYD) and Penn National Gaming, Inc (NASDAQ: PENN), and both stocks have taken a beating this year. Boyd shares are down 39.6% year to date, while Penn shares are down 26.5%.There is a bull case to be made for both stocks at this point. Here's how they stack up against one another.Related Link: The Road To Recovery For Las Vegas Casino Stocks The Boyd Bull CaseBoyd operates about 30 gaming facilities in 10 different U.S. states, including 12 properties in and around the Las Vegas area. Las Vegas casinos remain closed at this point, but Bank of America analyst Shaun Kelley recently said some properties could start opening back up in late May, while others could reopen in early June.In the meantime, Kelley said Boyd's stellar balance sheet will help it get through the shutdown. As of March 31, Boyd had $4.44 billion in total debt and $831.2 million in cash on hand."BYD's strong balance sheet should see it through and it has ample flexibility/levers to navigate this crisis, we believe," Kelley wrote in a note.Kelley estimates Boyd has roughly 14 months of liquidity at its current cash burn rate. In addition to its balance sheet, Boyd owns roughly 85% of its properties, which helps mitigate risk during the shutdown. Finally, Kelley said Boyd's regional casinos could be quicker to recover than Las Vegas casinos given Vegas' size and status as a tourist destination.Bank of America is projecting a 2020 EPS loss of $3.02 on $1.69 billion in revenue, down 49.2% from a year ago. However, Kelley is projecting a sharp recovery in 2021, including an EPS loss of just 18 cents and 71.2% revenue growthBank of America has a Buy rating and $22 price target for BYD stock.Year-to-date chart courtesy of TradingView. PENN = blue, BYD = orangeThe Penn National Bull CasePenn National operates 41 gaming properties, including casinos, horse racetracks and off-track wagering facilities.Penn's willingness to embrace online gambling, particularly in Pennsylvania, has it well-positioned for the future of the gaming business. Online gambling was on the rise even before the COVID-19 casino shutdowns, but the latest developments likely have many states taking a closer look at legalizing online casino alternatives.In addition, Penn management said it expects to be a major player in the emerging U.S. sports betting business. Earlier this year, Penn made an aggressive $136 million investment in a 36% ownership stake of sports blog Barstool Sports. Stifel analyst Steven Wieczynski recently said potential sports growth is the key to Penn's future.Related Link: How Trading In Ford, GE And Other Volatile Stocks Could Be Linked To Casino Closures"The company continues to expect to be a leading force in the emerging US sports betting business, noting it believes it can be a top-three share player and achieve the highest margins in any market it enters," Wieczynski wrote in a note.As of March 31, Penn has $2.89 billion in total debt and $730.7 million in cash on hand. On Tuesday, Penn announced a $250 million common stock offering and a $250 million convertible note offering.Stifel has a Buy rating and $37 price target for Penn.BYD Vs. PENNBoth Boyd and Penn are bets the U.S. gambling industry will recover from the current shutdown in the long term.Penn may be a higher-risk, higher-return play for more aggressive investors given its focus on growth avenues like online gambling and sports betting, whereas Boyd is a more conservative play due to its solid balance sheet and property ownership.Which stock do you think has a better chance to outperform? Email feedback@benzinga.com with your thoughts.Latest Ratings for BYD DateFirmActionFromTo Apr 2020SunTrust Robinson HumphreyMaintainsBuy Apr 2020JP MorganMaintainsOverweight Apr 2020Morgan StanleyMaintainsOverweight View More Analyst Ratings for BYD View the Latest Analyst Ratings See more from Benzinga * Las Vegas Room Rates Plummet As Casino Stocks Remain In Limbo * Benzinga CEO Talks Hedging Bets, Dividend Plays On PreMarket Prep(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Moody's Investors Service assigned a Caa1 rating to Boyd Gaming Corporation's ("Boyd") proposed $500 million unsecured notes due 2025. The company's Corporate Family Rating ("CFR") of B2 and Probability of Default Rating of B2-PD were affirmed. The company's Speculative Grade Liquidity rating was downgraded to SGL-4 from SGL-3.
Boyd Gaming Corporation (NYSE: BYD) today announced plans to resume operations at seven properties in Louisiana and Mississippi, pending receipt of final regulatory approvals.
Casino giant Caesars’ mountains of debt raises uncertainty about its pending merger with Eldorado (ERI) amid the pandemic, says Dan Wasiolek, senior equity analyst at Morningstar.
The number of global cases of COVID-19 rose above 4.31 million on Wednesday, as Russia counted another 10,000 infections and Brazil and Mexico suffered their deadliest day since the start of the pandemic.
Shares of U.S. casino stocks took a nosedive on Wednesday as investors became more bearish on the gambling market's recovery. Shares of Eldorado Resorts (NASDAQ: ERI) dropped as much as 15.9%, Red Rock Resorts (NASDAQ: RRR) fell up to 15%, and Boyd Gaming (NYSE: BYD) fell as much as 10%. The two other big casino operators, MGM Resorts International (NYSE: MGM) and Caesars Entertainment (NASDAQ: CZR), were being supported today for other reasons.
Gambling companies like Penn National Gaming (NASDAQ:PENN) stock have been left in ruins, with Lady Luck nowhere to be found.Source: Casimiro PT / Shutterstock.com In fact, thanks to the novel coronavirus, casino stocks like PENN hemorrhaged cash instead of raking it in. MGM Resorts (NYSE:MGM) was reportedly losing up to $14.4 million a day. Boyd Gaming (NYSE:BYD) lost up to $3.2 million a day, says Best Casinos' contributor James Murray.Long-term investors didn't fare much better. Since the chaos began, Las Vegas Sands (NYSE:LVS) slipped from a high of $70 to a current price of about $48. Caesars Entertainment (NASDAQ:CZR) fell from $14.60 to a current price of about $11. Boyd Gaming fell from $35 to near $20.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Excellent Penny Stocks Ready to RoarBut with economies starting to reopen, now may be the perfect time to dig for diamonds in the rough. One of the stocks to consider is Penn National, whose stock recovered from low of $3.75 to nearly $30 per share. If the U.S. economy can successfully reopen, PENN stock could revisit highs of nearly $40. Long-Term Growth is IntactLike most casinos, Penn National Gaming had a tough first quarter, said President and CEO Jay Snowden."Penn National saw a phenomenal start to 2020, with record results in January and February. Our Company was performing well ahead of guidance in every segment, driven in large part by the introduction of retail sports betting at several properties, which has served as a catalyst for both gaming and non-gaming revenue. We also saw a strong positive reaction, including our stock price hitting an all-time high, following the announcement of our strategic investment in Barstool Sports."Unfortunately, growth was cut short in March 2020 thanks to the coronavirus, which required closure. As a result, first-quarter revenues fell $166.5 million year over year to $1.12 billion. Penn National Gaming also saw a loss of $608.6 million, as compared to a profit of $41 million in the first quarter of 2019.But as Snowden added, "The company's long-term growth strategy remains intact" as the company moves forward with projects like its Barstool Sports app. Barstool Sports App Could Be Worth MillionsWith torpedoed results, Penn National Gaming took a 36% stake in Barstool Sports for $163 million in cash and stock to help grow its sports betting and entertainment offering. By 2023, the company could pay another $62 million to increase its stake to 50%.This is great news for Penn National Gaming for two reasons. One, at the moment, Barstool has an audience of 66 million and growing. Better still, Barstool views on social media have already soared 50% since April 2020, a sign of an engaged audience."Penn will have its Barstool (sports betting) app running by the third quarter," said Macquarie's Chad Beynon, "and we believe the app (and the Barstool) database can be worth $10 to $25 per share of equity over time."In addition, we have to realize that legal sports betting is a big multibillion-dollar business. In fact, according to the American Gaming Association's Research on Sports Betting, "Our research showed sports betting, if available online and reasonably taxed, could have an impact of $41.2 billion annually."Plus, nearly 40% of U.S. adults are currently betting on sports. Nevada Approves Casino Reopening PlansBoosting the sector even more was the Nevada Gaming Commission approving guidelines to reopen Las Vegas again soon.Under new guidelines, casinos will be limited to 50% occupancy. Conventions will be limited to 250 people. Restaurants will have limited seating and allow for appropriate distancing. Seating at table games will be limited as well. With blackjack, for example, seating will be limited to three players. Chairs will only be permitted at every other slot machine, too.While there's not a defined timeline for reopening, at least they'll reopen sooner than later.While it won't be business as usual for quite some time, we are beginning to see big signs of recovery. From here, I strongly believe now is the best time to buy down-but-not-out casino stocks like Penn National Gaming.Ian Cooper, an InvestorPlace.com contributor, has been analyzing stocks and options for web-based advisories since 1999. As of this writing, Ian Cooper did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post 3 Reasons to Buy Penn National Gaming Stock appeared first on InvestorPlace.
Boyd Gaming Corporation (NYSE: BYD) (the "Company") today announced that it has closed its previously announced offering of $600 million aggregate principal amount of 8.625% senior notes due 2025 (the "notes").
Q1 2020 Boyd Gaming Corp Earnings Call
Boyd Gaming Corporation (NYSE: BYD) (the "Company") today announced that it is offering $500 million aggregate principal amount of senior notes due 2025 (the "notes") in a private placement transaction, subject to market and certain other conditions. The notes will be fully and unconditionally guaranteed by certain of the Company's current and future domestic restricted subsidiaries.
Gaming industry boosted by the casinos reopening plan after the coronavirus-induced shutdowns.
With reopening in the cards for casinos in the near future, Caesar's Entertainment (NASDAQ: CZR), Boyd Gaming (NYSE: BYD), and MGM Resorts International (NYSE: MGM) have an ace up their sleeves to minimize coronavirus risk. The partners in the arrangement include not only the casinos above, but also the Las Vegas Convention Center, the Culinary Health Fund, and University Medical Center (UMC). The tests will help assure workers, many of them Culinary Union members, of workplace safety while coronavirus infections continue to add up.
Boyd Gaming Corp. said Wednesday it is offering $500 million of senior notes that mature in 2025 in a private placement. The Las Vegas-based company said it would use the proceeds for general corporate purposes, including working capital. Many U.S. companies are currently issuing bonds or tapping credit lines to bolster liquidity during the pandemic. Shares were up 0.9% premarket, but have fallen 44% in the year to date, while the S&P 500 has fallen 11%.
Casino stocks were some of the hardest hit stocks in the market during the coronavirus-driven market sell-off. Casinos are finally starting to open back up in parts of the U.S., but it may still be a long time before things are anywhere close to normal in the gambling world.Safe Bets?Bank of America analyst Shaun Kelley recently took a closer look at U.S. regional casino operators to identify where it's safe for investors to start dipping their toes into the space. Kelley said consumer spending during the economic recovery will vary state-by-state, and different regions of the country will likely perform better for investors.Bank of America said spending in the Northeast will likely lag other regions, while spending in the Midwest, South and West has been relatively strong in recent weeks.At the same time, jobless claims are materially lower in the Midwest, while they are relatively high in the West, especially in casino-heavy Nevada.See Also: Boyd Gaming Vs. Penn National: Which Stock Is The Better Casino Rebound Trade?How To Play ItGiven the Midwest is the only region to outperform the national average in both consumer spending and job loss, Kelley said regional casino stocks Penn National Gaming, Inc (NASDAQ: PENN), Eldorado Resorts Inc (NASDAQ: ERI) and Boyd Gaming Corporation (NYSE: BYD) could be the big winners.On the other hand, Red Rock Resorts Inc (NASDAQ: RRR) has high exposure to off-strip casinos in Nevada and could lag other operators given the high unemployment levels."Historically, employment has been more correlated with off-Strip gaming revenue than consumer indicators and we believe could better reflect the long-term health of NV's tourism-heavy economy," Kelley wrote.Benzinga's TakeJust because U.S. casinos are starting to open back up doesn't mean things will be back to normal anytime soon. Macau casinos began opening up back in March, but April gross gaming revenue was still down 97%.Do you agree with this take? Email feedback@benzinga.com with your thoughts.Latest Ratings for BYD DateFirmActionFromTo May 2020CIBCMaintainsOutperformer Apr 2020SunTrust Robinson HumphreyMaintainsBuy Apr 2020JP MorganMaintainsOverweight View More Analyst Ratings for BYD View the Latest Analyst Ratings See more from Benzinga * The Road To Recovery For Las Vegas Casino Stocks * Las Vegas Room Rates Plummet As Casino Stocks Remain In Limbo(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
* This weekend's Barron's shows how to prepare for the resumption of bank mergers. * Other featured articles offer tips for finding value in real estate stocks and what stocks to buy as Warren Buffett sits on the sidelines. * Also, the prospects for a gambling stock, stay-at-home picks and more.Carleton English points out that low interest rates and high technology costs are pushing smaller banks into the arms of bigger ones. What's that mean for Regions Financial Corp (NYSE: RF) and many others? Read on in "Bank M&A Will Resume Postcrisis. How to Prepare."Lawrence C. Strauss's "A Stock to Bet on a Recovery in Gambling" shows why Boyd Gaming Corporation (NYSE: BYD) faces the same near-term hurdles as most gambling companies, but is helped by a geographically diversified portfolio and sufficient financial flexibility.In "Where to Find Value in Real Estate Stocks," Daren Fonda suggests that beaten-down real estate stocks, from American Tower Corp (NYSE: AMT) to Equity Residential (NYSE: EQR), are rebounding on optimism for a reopening.A researcher who foresaw the housing crash that fueled the financial crisis now sees PulteGroup, Inc. (NYSE: PHM) and other builder stocks as buys. So says "Battered Builder Stocks Could Be Hot Properties Again" by Andrew Bary.In Jack Hough's "Lessons From the Pandemic Recycle Bin: Americans Like Liquor, Wine, Hard Seltzer, and Pizza," see why stay-at-home Americans have continued to support the likes of Domino's Pizza, Inc. (NYSE: DPZ).See also: Here's What Elon Musk Thinks About Warren Buffett"9 Value Stocks Investors Are Buying While Buffett Waits" by Randall W. Forsyth makes the case that the Oracle of Omaha may not be on the hunt, but Dow Inc (NYSE: DOW), Wells Fargo & Co (NYSE: WFC) and others could pay off big-time.The dividend streaks at Exxon Mobil Corporation (NYSE: XOM) and Southwest Airlines Co (NYSE: LUV) are over, according to Lawrence C. Strauss's "3 Long-Running Dividend Payouts Upended by Coronavirus"In "As the Nasdaq Soars, the Tech Trade Is Getting Crowded," Eric J. Savitz presents 12 Nasdaq stocks still worth buying and one to short. Do Amazon.com, Inc. (NASDAQ: AMZN) and Apple Inc. (NASDAQ: AAPL) make the cut?Also in this week's Barron's: * Why home prices are likely to hold up just fine * Why stocks are rising as joblessness soars * How laid-off workers show confidence they will be rehired * Why retire-early movement is thriving in crisis * Where investors can put their cash during the coronavirus crisis * What lower livestock prices mean for beef and pork at the store * Whether an abysmal jobs report means a protracted recoveryAt the time of this writing, the author had no position in the mentioned equities.Keep up with all the latest breaking news and trading ideas by following Benzinga on Twitter.See more from Benzinga * Barron's Picks And Pans: Berkshire Hathaway, Carvana, Madison Square Garden And More * Notable Insider Buys In The Past Week: AutoZone, Exxon, Dell And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Boyd Gaming (BYD) is set to resume operations in properties at Louisiana and Mississippi, while maintaining comprehensive protocols to contain the spread of the coronavirus.
Boyd Gaming (BYD) is likely to benefit from its portfolio expansion and increased focus on online betting.
MGM Resorts International
Boyd Gaming Corporation (NYSE: BYD) (the "Company") today announced that it has priced its previously announced offering of senior notes due 2025 (the "notes"). The aggregate principal amount of notes to be issued in the offering is $600 million. The size of the offering was increased from the previously announced $500 million aggregate principal amount. The notes will bear interest at a rate of 8.625% per annum, payable semi-annually on June 1 and December 1 of each year, commencing December 1, 2020. The notes will mature on June 1, 2025. The notes will be fully and unconditionally guaranteed by certain of the Company's current and future domestic restricted subsidiaries. The closing of the offering is expected to occur on May 21, 2020, subject to satisfaction of customary closing conditions.