{"id":218728,"date":"2022-06-24T10:49:31","date_gmt":"2022-06-24T17:49:31","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=218728"},"modified":"2022-06-24T12:19:17","modified_gmt":"2022-06-24T19:19:17","slug":"ballys-dutch-auction-plan-sparks-stock-to-upside","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/ballys-dutch-auction-plan-sparks-stock-to-upside\/","title":{"rendered":"Bally\u2019s Stock Surges on $190 Million Dutch Auction Plan"},"content":{"rendered":"

On a day of strength for gaming equities, Bally\u2019s (NYSE:BALY) is standing out. That’s after the regional casino operator announced a Dutch auction to repurchase up to $190 million worth of its shares outstanding.<\/p>\n

\"Bally's\"
The front doors of Bally’s Atlantic City, seen above. The operator’s stock is soaring today on plans for a Dutch auction. (Image: Press of Atlantic City<\/em>)<\/figcaption><\/figure>\n

In midday trading, shares of the Rhode Island-based gaming company are higher by almost 10%, making the stock one of Friday\u2019s best-performing casino equities. That puts a dent in a loss of 11.24%<\/a> over the past week. Bally\u2019s entered Friday having shed half its value this year.<\/p>\n

Bally\u2019s today announced that it has commenced a modified \u2018Dutch auction\u2019 tender offer to purchase its common shares for cash at a price per share of not less than $19.25 nor greater than $22.00 for a maximum aggregate purchase price of no more than $190 million. The tender offer begins today and will expire at 12:00 midnight, New York City time, at the end of the day on July 22, 2022, unless extended or earlier terminated by Bally’s,\u201d according to a statement issued by the company.<\/p><\/blockquote>\n

Bally\u2019s operates 14 casinos across 10 states.<\/p>\n

Other Gaming Companies Use Dutch Auctions<\/h2>\n

In essence, Bally\u2019s is buying back its own stock. But a Dutch auction is a unique spin on traditional repurchase efforts.<\/p>\n

Dutch auction methodology is different than repurchasing shares on the open market. In a Dutch auction, the price of what\u2019s being sold is determined by accounting for all bids to arrive at the highest price.<\/p>\n

That methodology has previously been used in the gaming industry. For example, in late 2021, Red Rock Resorts (NASDAQ:RRR)<\/a> meaningfully trimmed its shares outstanding count through a Dutch auction.<\/strong><\/p>\n

Repurchase programs are often seen as votes of confidence from management, and signals that they believe their company\u2019s stock is undervalued. With its stock down almost 66% over the past year, that could be the message Bally\u2019s is sending to investors.<\/p>\n

\u201cBally’s board of directors determined that Bally’s should pursue a $190 million tender offer in light of recent capital markets changes. Bally’s currently expects to return capital to shareholders in the future, including through its previously announced $350 million capital return program,\u201d said the company in the statement.<\/p>\n

Big Reduction in Bally\u2019s Shares Outstanding<\/h2>\n

One of the primary benefits of share buyback programs<\/a> and Dutch auctions is the reduction in a company\u2019s shares outstanding, which thereby increases earnings per share. In the case of Bally\u2019s, the casino operator could materially pare its shares outstanding count through the Dutch auction.<\/p>\n

\u201cIf the tender offer is fully subscribed, then common shares representing between 16.4% to 18.8% of Bally’s issued and outstanding shares will be purchased, depending on the purchase price payable in the tender offer,\u201d said the company.<\/p>\n

Bally\u2019s has 60.02 million shares outstanding. The company intends to pay for the program with cash on hand and borrowings from a credit facility.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

On a day of strength for gaming equities, Bally\u2019s (NYSE:BALY) is standing out. That’s after the regional casino operator announced a Dutch auction to repurchase up to $190 million worth of its shares outstanding. In midday trading, shares of the Rhode Island-based gaming company are higher by almost 10%, making the stock one of Friday\u2019s […]<\/p>\n","protected":false},"author":46,"featured_media":218731,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,33810],"tags":[],"acf":[],"yoast_head":"\nBally's Dutch Auction Plan Sparks Stock To Upside<\/title>\n<meta name=\"description\" content=\"Bally's stock jump on $190 million Dutch auction plan.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/ballys-dutch-auction-plan-sparks-stock-to-upside\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bally's Dutch Auction Plan Sparks Stock To Upside\" \/>\n<meta property=\"og:description\" content=\"Bally's stock jump on $190 million Dutch auction plan.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/ballys-dutch-auction-plan-sparks-stock-to-upside\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2022-06-24T17:49:31+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-06-24T19:19:17+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/ballyAC.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"873\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/ballys-dutch-auction-plan-sparks-stock-to-upside\/\",\"url\":\"https:\/\/www.casino.org\/news\/ballys-dutch-auction-plan-sparks-stock-to-upside\/\",\"name\":\"Bally's Dutch Auction Plan Sparks Stock To Upside\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/ballys-dutch-auction-plan-sparks-stock-to-upside\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/ballys-dutch-auction-plan-sparks-stock-to-upside\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/ballyAC.jpg\",\"datePublished\":\"2022-06-24T17:49:31+00:00\",\"dateModified\":\"2022-06-24T19:19:17+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Bally's stock jump on $190 million Dutch auction plan.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/ballys-dutch-auction-plan-sparks-stock-to-upside\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/ballys-dutch-auction-plan-sparks-stock-to-upside\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/ballys-dutch-auction-plan-sparks-stock-to-upside\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/ballyAC.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/ballyAC.jpg\",\"width\":1200,\"height\":873,\"caption\":\"Bally's Atlantic City. 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