Bally’s Insiders Show Interest in Stock Prior to MLB Vote
Insiders at Bally’s (NYSE: BALY) showed increased interest in the company’s stock ahead of a major vote by Major League Baseball (MLB) owners, which ultimately paved the way for the Oakland Athletics (A’s) to move to Las Vegas. This move will have direct implications for Bally’s, as the company operates the Tropicana in Las Vegas, which will be demolished to make way for a new MLB stadium.
The vote, which was unanimous, confirmed the fate of the Tropicana and solidified the team’s move to Las Vegas, where the new stadium is expected to be completed before the 2028 season. Bally’s acquired the Tropicana’s non-real estate assets in 2021 in a deal worth $308 million, making the stadium move a significant development for the company.
Before the vote, top executives at Bally’s, including CEO Robeson Reeves and George Papanier, president of the operator’s land-based casinos arm, showed their confidence in the company by purchasing shares. Bloomberg data shows that from November 3 to 9, 10 Bally’s insiders purchased a total of 81,500 shares, valued at over $760,000. Reeves and Papanier combined to purchase 40,000 of those shares. The company’s stock surged from $9.32 on November 3 to $11.23 on the day following the vote.
Analysts believe that the A’s move to Las Vegas could provide several opportunities for Bally’s, including the possibility of developing a new casino resort adjacent to the new stadium or selling its lease on the Tropicana to another gaming company. Another analyst, Chad Beynon from Macquarie, stated that the vote provides clarity for Bally’s and solidifies a better pathway for the company to grow and deleverage.
Beynon also believes that other Strip operators, including MGM Resorts International (NYSE: MGM), Caesars Entertainment (NASDAQ: CZR), Golden Entertainment (NASDAQ: GDEN), and Wynn Resorts (NASDAQ: WYNN), could benefit from the A’s move, as it will bolster the entertainment draw of the city and improve overall performance.
With Beynon having an “outperform” rating on Bally’s and a $15 price target, there is optimism that the A’s move to Las Vegas could be a positive catalyst for the company and other stakeholders in the Las Vegas market.