Full House Resorts CEO Sells Over $181K in Company Stock

Daniel R. Lee, President and CEO of Full House Resorts Inc., recently sold a total of $181,181 in company stock, as reported in a recent SEC filing. The sales took place over three days, with shares sold at prices between $5.0696 and $5.0873.

The series of transactions started on September 16, 2024, and continued through September 18, 2024. On the first day, Lee sold 11,737 shares at an average price of $5.0696. The next day, he sold 15,282 shares at a slightly higher average price of $5.0741. On the final day, he sold 8,676 shares at an average price of $5.0873.

Alongside these sales, Lee also exercised employee stock options to acquire shares on the same dates. On September 16, he acquired 11,737 shares at $1.25 each. The following day, he acquired another 15,282 shares at the same price, and on September 18, he added 8,676 shares to his holdings, also at $1.25.

Following these transactions, Lee directly owns 1,588,880 shares of Full House Resorts. The filing also revealed his indirect ownership through various trusts and custodial accounts for family members, including 145,735 shares held by a trust, 132,945 shares by a subtrust, and 15,926 shares as custodian for his daughter.

These trades were executed under a Rule 10b5-1 trading plan, adopted by Lee on June 11, 2024. This plan allows insiders to sell stocks based on a predetermined schedule during periods when they are not privy to significant non-public information, thereby providing a safeguard against insider trading allegations.

Investors often scrutinize insider transactions as they can provide insights into executives’ views on the company’s future. However, such transactions can also represent personal financial strategies and may not necessarily reflect expected changes in the company’s outlook.

In other recent developments, Full House Resorts has reached an agreement to sell Stockman’s Casino in Nevada to Clarity Game LLC for about $9.2 million, with the deal expected to close by late September 2024. The company will continue operating the casino during this period. This move aligns with Full House Resorts’ strategy to concentrate on larger properties, including the newly opened Chamonix and American Place casinos.

The company has reported considerable growth at its Chamonix property for the second quarter of 2024, along with a positive EBITDA. Additionally, plans for the American Place project are underway, with construction set to start in August 2025, and Full House Resorts is exploring the option of issuing new bonds to fund it.

Despite a pending lawsuit from the Potawatomi tribe, Full House Resorts remains confident in the long-term success of its Chamonix casino, where gaming revenues have more than doubled from the previous year. These developments demonstrate the company’s strategic financial planning and commitment to growth.

Investing insights suggest that the recent insider trading activity may lead investors to question the company’s financial status and future prospects. Full House Resorts currently faces a significant debt burden amid substantial cash burn. This financial situation is reflected in the company’s negative P/E ratio of -6.32, highlighting a lack of profitability at present. Furthermore, with a high PEG ratio of 29.08, expectations for future earnings growth appear quite ambitious.

Despite these hurdles, analysts are optimistic about sales growth for the current year, noting a 47.08% increase in revenue over the last twelve months as of Q2 2024. This uptick may indicate a potential recovery or expansion of Full House Resorts’ operations. The company’s stock price has experienced considerable volatility, which can offer opportunities for investors with a higher risk tolerance.

As Full House Resorts navigates its financial complexities, insights into its performance and future potential could aid investors in making informed decisions.