Full House Resorts Inc . (NASDAQ:FLL) President and CEO Daniel R. Lee has sold a portion of his company stock, according to a recent SEC filing. The transactions, which occurred on September 19 and 20, involved selling a total of 16,277 shares for an aggregate sale price exceeding $82,000.
The sales were executed in multiple transactions, with share prices ranging from $5.00 to $5.145. Specifically, on September 19, Lee sold 16,070 shares of Full House Resorts common stock at an average weighted price of $5.0734, and on September 20, he sold an additional 207 shares at a flat rate of $5.00 per share.
In addition to the sales, the filing disclosed that Lee acquired 16,277 shares of common stock through the exercise of options at a price of $1.25 per share, totaling approximately $20,346. These transactions were made under a Rule 10b5-1 trading plan, which Lee had adopted earlier on June 11, 2024.
Following these transactions, the CEO still holds a significant number of shares in the company. The SEC filing indicates that Lee's direct holdings in Full House Resorts are sizable, with additional indirect holdings through trusts and custodial accounts for family members.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on their company's stock value. However, such sales and purchases can be influenced by various factors, including personal financial planning and diversification strategies.
Full House Resorts Inc., based in Las Vegas, Nevada, operates in the hospitality and gaming industry, with a portfolio that includes casinos and hotels. The company has not provided any public comment regarding these recent stock transactions by its CEO.
In other recent news, Full House Resorts has agreed to sell its Stockman's Casino in Nevada to Clarity Game LLC for approximately $9.2 million, with the transaction expected to close by late September 2024. This move is part of the company's strategic shift towards larger properties, including the recently opened Chamonix and American Place casinos. Furthermore, the company reported significant growth at its Chamonix property for the second quarter of 2024, alongside a positive EBITDA.
Full House Resorts is also making strides in its expansion plans, with construction for the American Place project expected to begin in August 2025. The company is considering issuing new bonds to finance the project, which is estimated to cost around $325 million. In an effort to boost midweek room occupancy, the company is focusing on attracting group and convention business, with plans to hire more sales personnel.
Despite facing a 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. The company has set a target of achieving $10.5 million of monthly gaming revenue with margins over 30%, emphasizing the importance of marketing and revenue growth. These recent developments underline Full House Resorts' strategic financial planning and commitment to growth.
InvestingPro Insights
As Full House Resorts Inc. (NASDAQ:FLL) navigates the dynamic hospitality and gaming industry, real-time data and expert analysis can offer valuable context to investors following insider transactions like those of CEO Daniel R. Lee. The recent sale of company stock by Lee has drawn attention, and InvestingPro's insights can help to understand the company's current financial health and future prospects.
InvestingPro data shows that Full House Resorts has a market capitalization of $170.52 million, indicating its size within the market. Despite a challenging environment, the company has experienced a notable revenue growth of 47.08% over the last twelve months as of Q2 2024. This growth is a positive signal for investors, aligning with one of the InvestingPro Tips, which points out that analysts anticipate sales growth in the current year.
However, the company's financials also reveal some areas of concern. Full House Resorts is currently trading with a negative P/E ratio of -6.13, reflecting that it is not profitable as of the last twelve months. This is corroborated by another InvestingPro Tip, which indicates that analysts do not expect the company to be profitable this year. Moreover, the company's significant debt burden and the fact that its short-term obligations exceed liquid assets are crucial factors for investors to consider.
For those seeking comprehensive analysis, InvestingPro offers additional tips on Full House Resorts, including insights on stock price volatility and cash flow concerns. In total, there are 11 more InvestingPro Tips available, providing a deeper dive into the company's financials and market performance.
Investors may also find the InvestingPro Fair Value estimate of $5.34 USD to be a useful reference when assessing the stock's current price and potential investment value. Notably, the stock is trading at 81.27% of its 52-week high, suggesting room for potential upside if the company can address its challenges and capitalize on its sales growth.
With Full House Resorts' next earnings date set for November 4, 2024, stakeholders will be keenly awaiting further updates on the company's performance and strategic direction.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.