Golden Entertainment Director Sells Over $346K in Company Stock

Golden Entertainment, Inc. recently saw one of its directors, Mark A. Lipparelli, sell a total of 10,773 shares of common stock, resulting in proceeds of approximately $346,856. These transactions occurred over two consecutive days, beginning on September 19, 2024, when he sold 773 shares at an average price of $33.32, followed by the sale of 10,000 shares the next day at an average price of $32.11.

The shares were sold at prices between $32.00 and $33.37, according to footnotes in the SEC filing. These footnotes clarify that the prices mentioned are weighted averages, and the actual sales were conducted over multiple transactions within the specified price ranges.

As of now, Lipparelli holds 72,740 shares directly in Golden Entertainment. Such sales by company insiders may attract the attention of current and prospective investors as they evaluate stock movements and the company’s financial situation.

Based in Las Vegas, Nevada, Golden Entertainment operates in the amusement and recreation sector, offering a variety of services and entertainment options. The company has undergone several name changes, previously known as Lakes Entertainment Inc. and Lakes Gaming Inc.

In other developments, Golden Entertainment recently released its Q2 2024 financial results, which were mixed. The company reported revenues of $167 million and an EBITDA of $41 million, with a slight decrease in total property revenue and consolidated EBITDA. Notably, the STRAT property achieved record hotel revenues for the quarter. However, challenges were identified in the Laughlin operations and Nevada Locals Casinos, although there is optimism around the tavern business and upcoming events.

Since early 2021, Golden Entertainment has successfully paid down over $750 million in debt, bringing its net leverage below 2x. The company also plans to undertake share repurchases and expects to benefit from the upcoming F1 event, along with other strategic initiatives. Despite declines in revenue and EBITDA within Laughlin and local casinos, the tavern sector experienced a 3% increase in revenue due to the acquisition of six new taverns.

Recent efforts are focused on improving midweek occupancy, which lags nearly 18% behind 2019 levels, and there are expectations of increased visitor interest at the STRAT with the launch of Atomic Golf. Interest has also been shown in potential non-gaming development opportunities. Although the company has faced challenges with midweek occupancy and lower-tier customer engagement, it continues to implement strategic initiatives aimed at boosting direct bookings.

Golden Entertainment has recently experienced notable insider activity, which can be important for investors. The company currently has a market capitalization of approximately $891.06 million and a low price-to-earnings ratio of 3.33, along with a price-to-book ratio of 1.65 as of the last twelve months leading up to Q2 2024. These metrics may be indicative of a stock that could appeal to value investors.

However, analysts forecast a sales decline for the current year, with reported revenue growth of -26.14% over the last twelve months as of Q2 2024, coupled with a significant quarterly revenue drop of -41.63%. Despite these hurdles, Golden Entertainment has maintained a gross profit margin of 47.72%, suggesting a strong ability to retain sales as gross profit.

Stock price movements for Golden Entertainment have been volatile, which may raise concerns for risk-averse investors. Furthermore, the company’s short-term obligations surpass its liquid assets, indicating possible liquidity risks. Nevertheless, analysts anticipate profitability for the current year, and the company has remained profitable over the past twelve months.

Investors are advised to keep an eye on the upcoming earnings report scheduled for October 31, 2024, as it will provide further insights into the company’s performance and outlook.