Daniel R. Lee, the President and CEO of Full House Resorts Inc . (NASDAQ:FLL), has sold a total of $181,181 worth of company stock, according to a recent SEC filing. The transactions occurred over a span of three days, with shares being sold at prices ranging from $5.0696 to $5.0873.
The executive’s series of transactions began 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 following day, he sold another 15,282 shares, this time at a slightly higher average price of $5.0741. The last set of sales involved 8,676 shares sold at an average of $5.0873 per share.
In addition to the sales, Lee also acquired shares on the same dates through the exercise of employee stock options. On September 16, he exercised options to acquire 11,737 shares at a set price of $1.25 per share. The next day, 15,282 shares were acquired at the same price, and on September 18, another 8,676 shares were added to his holdings, also at $1.25.
Following the reported transactions, Lee’s direct ownership in Full House Resorts Inc. stands at 1,588,880 shares. The filing also disclosed 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.
The reported trades were conducted under a Rule 10b5-1 trading plan, which was adopted by Lee on June 11, 2024. This plan allows company insiders to set up a predetermined schedule to sell stocks at a time when they are not in possession of material non-public information, providing a defense against potential accusations of insider trading.
Investors often monitor insider transactions as they can provide insights into executives’ perspectives on the company’s future performance. However, these transactions may also be part of personal financial management strategies and do not necessarily signal a change in company prospects.
In other recent news, Full House Resorts, Inc. has agreed to sell Stockman’s Casino in Nevada to Clarity Game LLC for approximately $9.2 million. The transaction is expected to close by late September 2024, with the company continuing to operate the casino until then. This development comes as Full House Resorts shifts its focus to larger properties, such as the recently opened Chamonix and American Place casinos.
In addition to the sale, Full House Resorts has reported significant growth at its Chamonix property for the second quarter of 2024, alongside a positive EBITDA. The company has also announced plans for the American Place project, with construction expected to begin in August 2025. To finance this project, Full House Resorts is contemplating issuing new bonds.
Despite a pending lawsuit from the Potawatomi tribe, Full House Resorts remains optimistic about the long-term success of its Chamonix casino, where gaming revenues more than doubled compared to a year ago. These recent developments underline Full House Resorts’ strategic financial planning and commitment to growth.
InvestingPro Insights
The recent insider trading activity by Full House Resorts Inc.’s President and CEO, Daniel R. Lee, may raise questions among investors about the company’s financial health and future prospects. To provide a clearer picture, let’s consider some key metrics and insights from InvestingPro.
Full House Resorts Inc. is currently operating with a significant debt burden, which is an important factor for investors to consider, especially when the company is also quickly burning through cash. This financial situation is reflected in the company’s negative P/E ratio of -6.32, indicating that it is not currently profitable. Additionally, with a high PEG ratio of 29.08, the expectation for future earnings growth compared to the current earnings multiple appears to be quite optimistic.
Despite these challenges, analysts anticipate sales growth in the current year, as evidenced by a notable 47.08% increase in revenue over the last twelve months as of Q2 2024. This growth could be a sign of potential recovery or expansion in Full House Resorts’ operations. Moreover, the company’s stock price movements have been quite volatile, which could present opportunities for investors with a higher risk tolerance.
For investors seeking more in-depth analysis, there are additional InvestingPro Tips available for Full House Resorts Inc. at https://www.investing.com/pro/FLL. These tips provide further insights into the company’s valuation, profitability, and stock performance over time. As of now, there are 11 more InvestingPro Tips listed that could help investors make more informed decisions.
As Full House Resorts navigates through its financial complexities, these InvestingPro Insights and additional tips could prove invaluable for investors looking to understand the nuances of the company’s stock performance and future potential.
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