Full House Stock Surges as CEO Lee Buys 276K Shares
Posted on: June 18, 2025, 09:48h.
Last updated on: June 18, 2025, 10:06h.
- Stock soars on news of CEO share purchase
- Regional casino operator extends Lee’s contract through June 2030
Shares of Full House (NASDAQ: FLL) are higher by 18.10% on volume that’s already approaching the daily average in early trading Wednesday following the release of a regulatory document indicating CEO Dan Lee bought a significant chunk of his employer’s stock.
A Form 4 filing with the Securities and Exchange Commission (SEC) out late Tuesday indicates Lee purchased 276,300 shares of the gaming company’s equity in two June 13 transactions. Combined, those purchases exceed $1.3 million. Wednesday’s rally is helpful to Lee because his average buying price was $4.75, well above the price tag of $3.85 the stock sports at this writing.
Lee, the former spouse of Rep. Susie Lee (D-NV), also had his contract with Full House extended through June 14, 2030, at an annual base salary of $700K, putting him in the 50th percentile of chief executive officers at peer companies. The new accord contains clauses for bonuses related to debt refinancing and relocation of an Indiana casino.
If the company succeeds in obtaining all of the governmental approvals necessary to relocate the Rising Star Casino license to a different location in Indiana, and the Company proceeds to develop the new facility associated with the Rising Star Casino license, including the development of any related temporary casino facilities, Mr. Lee shall be paid a bonus of $300,000,” according to a Form 8-K.
Earlier this year, Indiana lawmakers introduced a bill that would allow Full House to close Rising Star and move it to New Haven, putting the gaming venue closer to Fort Wayne, which is the state’s second-largest city.
Lee’s Buys Could Restore Confidence in Full House Stock
Insider buying can be a relevant indicator because those buyers are engaging in those purchases for a single reason: they believe their employer’s shares will appreciate in value.
Such transactions have the potential to foster or restore confidence among a company’s investors — something Full House shareholders could use as the stock is down 19.57% over the past year and 7.35% year to date. It’s not alone as a small-cap regional casino operator that’s seen its shares decline in 2025.
Wall Street is mostly bullish on Full House with three of the four analysts covering the stock rating it “strong buy” or “buy” and their average price target is $4.75, implying upside of 22.74%.
Some analysts believe contributions from the operator’s American Place casino hotel in Waukegan, Ill. and its Chamonix Casino Hotel in Cripple Creek, Colo. could set the stage for longer-term growth and upside for the battered stock.
Lee’s Interests Aligned with Full House Investors
Given the stock’s recent struggles, Full House investors are right to be frustrated, but there are signs that Lee’s interests are aligned with those of shareholders as his new employment agreement contains some performance-related provisions.
Those include tethering the granting of restricted stock to earnings before interest, taxes, depreciation, and amortization (EBITDA) and free cash flow growth.
“The second performance-based criteria shall be based on the anticipated three-year compound growth rate of Free Cash Flow Per Share. For 2025, such compound growth rate shall be 12%. For grants in subsequent years, the Committee shall establish a reasonable expectation for such growth rate,” according to the 8-K.
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