Full House Resorts Inc . (NASDAQ:FLL) reported that its President and CEO, Daniel R. Lee, engaged in multiple stock transactions involving the company's shares. According to the latest filings, Lee sold a total of 39,329 shares of Full House Resorts common stock for over $192,000.
The transactions were carried out in two separate tranches. On October 1, Lee sold 15,439 shares at a weighted average price of approximately $4.953. The sales were executed in multiple transactions with prices ranging from $4.865 to $5.025. A couple of days later, on October 3, an additional 23,890 shares were sold by Lee at a weighted average price of $4.8398, with individual sales prices ranging between $4.80 and $4.92.
These sales followed Lee's acquisition of the same number of shares through the exercise of options at a price of $1.25 per share. The options exercised were fully vested as of November 28, 2018, and the exercises and subsequent sales were conducted according to a Rule 10b5-1 trading plan adopted on June 11, 2024.
Following these transactions, the CEO's direct holdings in Full House Resorts stand at 1,588,880 shares. The company, based in Las Vegas, Nevada, operates in the hospitality and gaming industry, and is known for its properties that offer casino, hotel, and entertainment services.
Investors often monitor insider transactions as they provide insights into executives' perspectives on the company's stock value and future performance. The transactions by Full House Resorts' CEO represent a significant change in his investment in the company, and may be of interest to current and potential shareholders.
In other recent news, Full House Resorts, Inc. has made strategic moves to enhance its growth and financial profile. The company recently sold Stockman's Casino in Fallon, Nevada, to Clarity Game LLC for approximately $9.2 million, a move that comes as Full House Resorts shifts its focus to larger properties, including the recently opened Chamonix and the upcoming American Place casinos.
In addition to this sale, Full House Resorts reported a positive EBITDA and significant growth at its Chamonix property for the second quarter of 2024. The company also revealed plans for the American Place project, which is expected to begin construction in August 2025, backed by a substantial investment.
To finance the American Place project, Full House Resorts is considering issuing new bonds. The project, estimated to cost around $325 million, is part of the company's strategy to increase gaming revenues. The company aims to achieve $10.5 million of monthly gaming revenue with margins over 30%.
Despite a pending lawsuit from the Potawatomi tribe, which could potentially affect the timeline of the American Place project, Full House Resorts remains optimistic about the long-term success of its Chamonix casino. These recent developments reflect Full House Resorts' strategic financial planning and commitment to growth.
InvestingPro Insights
To provide additional context to Full House Resorts' recent insider transactions, let's examine some key financial metrics and insights from InvestingPro.
Full House Resorts has demonstrated strong revenue growth, with a 47.08% increase in the last twelve months as of Q2 2024. This aligns with an InvestingPro Tip indicating that analysts anticipate sales growth in the current year. The company's robust revenue performance could be a factor in CEO Daniel R. Lee's decision to exercise his options and realize some gains.
However, it's worth noting that despite the revenue growth, Full House Resorts is not currently profitable. The company's P/E ratio stands at -5.99, reflecting negative earnings. This is further supported by an InvestingPro Tip suggesting that analysts do not anticipate the company will be profitable this year.
The stock's volatility, as highlighted by another InvestingPro Tip, may explain the timing of Lee's transactions. With the stock price at 80.77% of its 52-week high and a 19.61% total return over the past year, the CEO may have seen an opportune moment to sell.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Full House Resorts, providing a deeper understanding of the company's financial health and market position.
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