WYNN

Wynn Resorts ($WYNN) Major Shareholder Fertitta Invests Additional $1.38 Million in March, Betting on UAE Expansion and Macau Recovery

03/25/2025 12:05

Tilman J. Fertitta, a major shareholder of Wynn Resorts ($WYNN), has significantly increased his stake in the company with substantial purchases in late March. Fertitta acquired a total of 16,500 shares across two transactions on March 21 and March 24, investing approximately $1.38 million at average prices of $80.99 and $84.93 per share, respectively. This buying activity is the latest in a series of positive signals from Wynn insiders. In February, board member Philip G. Satre invested over $2 million to purchase 22,200 shares at $92.18 per share, while director Paul Albert Liu acquired 1,600 shares for $147,904 at $92.44 per share. Fertitta already held a substantial position in Wynn Resorts prior to these recent purchases. Beyond his directly owned 161,925 shares, he indirectly controls more than 12.4 million shares through various entities. He is the sole shareholder of Fertitta Entertainment, Inc., which owns Hospitality Headquarters and has sole indirect ownership of Fertitta Entertainment, LLC. His stake was reported to be 9.9% as of November last year, according to CBRE, and has now increased further with these additional purchases. Wynn Resorts' stock has shown volatility in 2025, recovering to around $90 in early March before recently falling back to the low $80s. Over the past six months, the stock has traded as high as $105, but experienced a significant drop after third-quarter results missed expectations in November 2024. However, fourth-quarter results substantially exceeded market forecasts. In their February 13 announcement, Wynn reported adjusted earnings of $2.42 per share, nearly double analysts' expectations of $1.22. Although revenue remained flat year-over-year at $1.84 billion, net income reached $276.97 million for the quarter. Wynn Resorts operates luxury casino resorts in Las Vegas, Macau, and the Boston area. The company achieved a significant milestone in October 2024 by securing the first commercial gaming operator's license in the UAE. Wynn is developing a luxury resort on Al Marjan Island in Ras Al Khaimah as part of this expansion. In response to these developments, Morgan Stanley raised its price target for Wynn to $112, and Jefferies upgraded the stock to 'buy' on February 18, 2025. Currently, most of the 18 analysts covering the stock maintain 'buy' ratings, with an average price target of $113.31, suggesting a 33.51% upside from current levels. The Macau gaming market is also showing signs of recovery. Data released in early March indicated that February gambling revenue in Macau increased by 6.8% year-over-year to 19.7 billion patacas (approximately $2.46 billion), demonstrating continued recovery in the post-pandemic era. Jefferies forecast in early 2025 that economic support from China would boost Macau's gaming revenue to 2019 levels by 2026. The brokerage also projected high demand and limited supply for Las Vegas casinos in 2025-26. However, there are some concerns. Recent declines in U.S. travel-related stocks due to lowered airline forecasts and increasing recession worries could impact the broader hospitality sector. Additionally, U.S. government job cuts and new tariffs announced by the Trump administration may create economic headwinds. From an insider trading perspective, Fertitta's consecutive purchases and the February cluster buying by directors send a strong signal of internal confidence in the company's long-term prospects. These substantial insider acquisitions are particularly noteworthy as they coincide with the materialization of new growth drivers, including the UAE expansion and Macau recovery.

You can receive notifications when news is published.