Full House Resorts Inc . (NASDAQ:FLL) has reported insider trading activity by its President and CEO, Daniel R. Lee. According to the latest SEC filings, Lee completed multiple transactions involving the sale and acquisition of company shares.
On October 9, 2024, Lee sold 16,734 shares of Full House Resorts stock at an average price of $5.0105, resulting in a total sale amount of approximately $83,848. The shares were sold in various transactions with prices ranging from $4.97 to $5.08. Following this transaction, Lee's direct ownership in the company decreased to 1,588,880 shares.
The next day, on October 10, Lee continued with the sale of an additional 9,560 shares, this time at an average price of $4.9942, totaling around $47,781. These shares were sold in multiple transactions at prices between $4.96 and $5.03.
Finally, on October 11, Lee sold 10,793 shares at an average price of $4.9999, amounting to approximately $53,925. The sale took place in several transactions with prices ranging from $4.98 to $5.04.
In addition to the sales, Lee also acquired shares through option exercises on the same dates. On October 9, he exercised options to acquire 16,734 shares at $1.25 per share. On October 10, another 9,560 shares were acquired at the same price, and on October 11, an additional 10,793 shares were purchased, all at $1.25 per share. The total amount spent on these option exercises was $46,358.
These transactions 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 buy or sell shares at a time when they are not in possession of material non-public information, providing an affirmative defense against accusations of insider trading.
Investors often monitor insider buying and selling activities as they may provide insights into a company's financial health and future prospects. The transactions reported by Full House Resorts' CEO are part of the normal course of business and are disclosed in accordance with SEC regulations.
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 company will continue to operate the casino until the completion of the transaction. This development is part of Full House Resorts' strategic shift towards its larger properties, such as the newly opened Chamonix and American Place casinos.
In financial highlights, Full House Resorts reported a positive EBITDA and significant growth at its Chamonix property for the second quarter of 2024. The company also announced plans for the American Place project, with construction slated to start in August 2025. To finance this new project, Full House Resorts is considering issuing new bonds.
The company is also focusing on increasing its gaming revenues and has set a target of achieving $10.5 million of monthly gaming revenue with margins over 30%. To help reach this goal, Full House Resorts plans to open an Italian restaurant at the old Bronco Billy's location and attract more table games. Despite a pending lawsuit from the Potawatomi tribe, Full House Resorts remains optimistic about the long-term success of its Chamonix casino. These are the recent developments from Full House Resorts.
InvestingPro Insights
To provide additional context to the insider trading activity reported for Full House Resorts Inc. (NASDAQ:FLL), let's examine some key financial metrics and insights from InvestingPro.
As of the latest data, Full House Resorts has a market capitalization of $173.65 million. The company's revenue for the last twelve months as of Q2 2024 stood at $274.99 million, with a impressive revenue growth of 47.08% over the same period. This strong growth is reflected in one of the InvestingPro Tips, which notes that analysts anticipate sales growth in the current year.
Despite the positive revenue trajectory, Full House Resorts faces some financial challenges. The company's P/E ratio stands at -6.21, indicating that it is not currently profitable. This aligns with another InvestingPro Tip stating that the company has not been profitable over the last twelve months. Additionally, the tip suggesting that the company is quickly burning through cash could be a concern for investors, especially in light of the insider selling activity reported.
It's worth noting that the stock's price movements are quite volatile, according to InvestingPro. This volatility, combined with the fact that the stock is trading at 83.44% of its 52-week high, may provide context for the CEO's decision to exercise options and sell shares.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Full House Resorts, which could provide further insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.