Steve Wynn’s Purchase Of Wynn Resort Shares Causes Spike In Prices
Wynn Resorts has had a tough 2015 but as the year comes to a close things are looking up for the company and its chairman Steve Wynn. Wynn Resorts has faced a number of challenges in Macau as the anti-corruption crackdown has sent the gambling industry into a downward spiral and gross gaming revenue (GGR) numbers have declined for 18 consecutive months and caused share prices to also decline in the process.
The company’s share prices experienced a strong spike after information was released confirming that Steve Wynn had completed a share buyA filing with Nasdaq where he had agreed to buy 1 million shares of Wynn Resorts that would cost him over $1 million.
The Nasdaq filing stated that Steve Wynn bought as many as 1,003,977 shares between the 4th and 8th of December and paid an average between $62.41 and $64.44 per share.
The market responded very well once it came to light that Steve Wynn had just bought over one million of his own company’s shares and share prices rose to $69.91. The new purchase of one million shares now gives Steve Wynn almost 10,026,708 shares or close to 11 percent of the total volume of shares. However Steve Wynn has a limited ability clause on all those shares as he has entered into an agreement with his ex-wife Elaine Wynn and cannot sell his shares as of now.
Wynn Resorts has faced a number of challenges this year that has resulted in a steep decline in share prices. The company’s Wynn Everett project in Massachusetts has faced a lot of opposition from the city of Boston and Mayor Martin Walsh who have filed lawsuits to stop the Wynn Everett casino. Wynn’s Macau operations have suffered greatly due to the anti-corruption crackdown, the collapse of the VIP market segment and the closures of junket operators causing protests outside Wynn Macau.
However things are looking up for Wynn Resorts and Deutsche Bank analysts stated that investors should not be surprised to see Wynn Resorts share prices climb as the one million share purchase from Steve Wynn has happened after a long gap and it will infuse confidence in the market and in Wynn Resort stock.
In a statement, a representative from Deutsche Bank said
Furthermore, in our view, anytime a CEO buys a meaningful stake it sends a favorable message. However, in this instance, and assuming the shares are included in the unilateral agreement, which makes selling very difficult, we view the message as that much more forceful.
