LAS VEGAS—Daniel R. Lee, President and CEO of Full House Resorts Inc . (NASDAQ:FLL), recently executed a series of stock transactions involving the company's shares, according to a regulatory filing.
On October 14, 15, and 16, Lee sold a total of 33,475 shares of Full House Resorts' common stock. These sales were conducted at weighted average prices ranging from $4.9624 to $4.9937 per share, resulting in a total transaction value of approximately $166,702.
In addition to the sales, Lee exercised options to acquire 33,475 shares at a price of $1.25 per share. The exercises and subsequent sales were carried out under a pre-established Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined schedule for selling stocks, helping them avoid potential accusations of insider trading.
Following these transactions, Lee holds 1,588,880 shares directly, with additional shares held indirectly through trusts and as a custodian.
In other recent news, Full House Resorts, Inc. has made significant strides in its financial and operational performance. The company reported positive EBITDA and significant growth at its Chamonix property for Q2 2024. Further, Full House Resorts plans to expand with its American Place project, with construction expected to initiate in August 2025. To finance this $325 million project, the company is contemplating issuing new bonds.
Recently, Full House Resorts sold Stockman's Casino in Nevada to Clarity Game LLC for approximately $9.2 million, a transaction expected to close by late September 2024. This move aligns with the company's strategy to concentrate on larger properties like Chamonix and American Place. Despite facing a lawsuit from the Potawatomi tribe, which could potentially impact the American Place project timeline, the company remains optimistic about its long-term success.
In the pursuit of increasing gaming revenues, Full House Resorts plans to open an Italian restaurant at the old Bronco Billy's location and aims to attract more table games. The company is focusing on attracting group and convention business, with plans to hire more sales personnel. With a target of achieving $10.5 million of monthly gaming revenue with margins over 30%, Full House Resorts emphasizes the importance of marketing and revenue growth.
InvestingPro Insights
As Daniel R. Lee, President and CEO of Full House Resorts Inc. (NASDAQ:FLL), executes his pre-established trading plan, it's worth examining some key financial metrics and insights provided by InvestingPro.
Full House Resorts has shown impressive revenue growth, with a 47.08% increase in the last twelve months as of Q2 2024, reaching $274.99 million. This aligns with an InvestingPro Tip indicating that analysts anticipate sales growth in the current year. The company's strong revenue performance is further underscored by a 23.76% quarterly revenue growth in Q2 2024.
Despite the positive revenue trajectory, InvestingPro Tips highlight that Full House Resorts operates with a significant debt burden and is quickly burning through cash. This financial situation may explain why the company does not pay a dividend to shareholders, as noted by another InvestingPro Tip.
The stock's valuation metrics present a mixed picture. With a Price to Book ratio of 2.92 and a negative P/E ratio of -6.25, investors should carefully consider the company's current market position. An InvestingPro Tip suggests that the stock price movements are quite volatile, which could be attributed to the company's financial challenges and growth prospects.
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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