Documents filed with the U.S. Securities and Exchange Commission on Monday, revealed that Elliott Associates has taken a significant stake in casino-operator Boyd Gaming (BYD). The news sent BYD stock vaulting more than 15% in Tuesday morning trading.
Nevada-based BYD operates 22 casinos in Las Vegas and seven other states, including Indiana, Illinois, Iowa, Kansas, New Jersey, Louisiana and Mississippi.
During the fourth-quarter, BYD posted a loss of $47.3 million. That was significantly lower than the loss of $899.9 million it reported in the year-ago period. The company’s Borgata casino in New Jersey’s Atlantic City saw revenue tumble due to severe weather during the period.
Elliott Associates, an activist investment firm, described BYD stock as undervalued in the regulatory filing, the Wall Street Journal noted.
On Monday, BYD stock closed at $11.80 a share. Over the past year, BYD shares have climbed more than 60%.