This Fund Sold $39 Million of Boyd Gaming Stock While Exiting MGM and Downsizing United Parks Bets

New York City-based HG Vora Capital Management fully exited its position in Boyd Gaming Corporation (NYSE:BYD), reducing its exposure to the stock by an estimated $39.1 million in the third quarter, according to an SEC filing on Friday.

What Happened

HG Vora Capital Management liquidated its entire stake in Boyd Gaming Corporation (NYSE:BYD), selling 500,000 shares during the third quarter. The transaction, estimated at $39.1 million based on quarterly average pricing, was disclosed in a Form 13-F filed with the Securities and Exchange Commission (SEC) on Friday. The fund reported no remaining shares in the company at the close of the quarter.

What Else to Know

Top holdings after the filing:

• NASDAQ: PENN: $139.6 million (18.9% of AUM)
• NASDAQ: CZR: $94.6 million (12.8% of AUM)
• NASDAQ: DRVN: $90.2 million (12.2% of AUM)
• NYSE: FAF: $65.8 million (8.9% of AUM)
• NYSE: R: $63.2 million (8.6% of AUM)

As of Friday, shares of Boyd Gaming Corporation were priced at $79.78, up 9% over the past year and underperforming the S&P 500's 14% gain in the same period. HG Vora reported 14 positions and $738 million in 13F reportable AUM as of September 30.

Company Overview

Company Snapshot

Boyd Gaming Corporation is a leading U.S. gaming operator with a diversified portfolio spanning key regional and Las Vegas markets. The company’s strategy emphasizes operational efficiency, geographic diversification, and a focus on stable, recurring revenue streams from both gaming and non-gaming amenities. Boyd Gaming’s scale and local market expertise provide a competitive advantage in serving a broad customer base while maintaining resilience across economic cycles.

Foolish Take

The most revealing part of HG Vora’s latest disclosure might be the pattern: While trimming United Parks and exiting MGM in the same quarter, the firm also fully disposed of its Boyd Gaming stake as well. For a manager that targets discounted, cash-generative businesses with multiple paths to unlock value, reducing exposure across three leisure names suggests the upside case has narrowed or the capital can be redeployed more productively elsewhere. Within HG Vora’s concentrated book—still dominated by leisure giants Penn and Caesars—the Boyd and MGM exits stick out as targeted moves.

Boyd’s latest results underscore why conviction may have softened. While headline revenue grew to $1 billion from $961 million, profitability told a more mixed story. Adjusted EBITDAR slipped to $321.8 million from $336.6 million, reflecting lower market-access fees following the FanDuel transaction. Adjusted earnings were essentially flat at $139.1 million, and despite strong core-customer play across segments, the company’s online and room revenues fell year over year. The quarter did include a one-time $1.4 billion gain from the FanDuel sale—boosting GAAP net income—but that doesn’t change the underlying trend.

Boyd remains fundamentally solid, with disciplined capital returns and strong regional momentum. But until profitability stabilizes, the stock may struggle to attract deep-value capital looking for clearer opportunities.

Glossary

13F reportable assets under management (AUM): The total value of securities a fund must report quarterly to the SEC on Form 13F.
Liquidated: Sold off an entire investment position, reducing the holding to zero.
Form 13-F: A quarterly SEC filing by institutional investment managers disclosing their equity holdings.
Stake: The ownership interest or investment a fund holds in a particular company.
Ancillary services: Additional services offered by a company beyond its main business, such as entertainment or hospitality.
Geographic diversification: Spreading investments or operations across different regions to reduce risk.
Segment diversification: Operating in multiple business areas or market segments to reduce reliance on a single source of revenue.
Operational efficiency: Achieving maximum output or profitability with minimal wasted effort or expense.
TTM: The 12-month period ending with the most recent quarterly report.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.