Wynn Resorts, Limited (NASDAQ:WYNN), an operator of casino resorts and luxury hotels, jumped yesterday after casino mogul Tilman Fertitta disclosed a 6.1% stake. Fertitta bought 6.9 million shares of Wynn on October 19 and is now the second largest individual shareholder of the company. Wynn’s largest shareholder by far remains co-founder Elaine Wynn.
Wynn shares jumped over 12% in intraday trading on the news.
Notably, Fertitta bought a total of 6,917,551 shares of Wynn under the names of Hospitality Headquarters, Inc., Fertitta Entertainment, Inc., and his personal name.
Fertitta is considered a casino and hospitality industry tycoon. His investment comes at a time when the casino industry has recovered from the scars of the pandemic-related shutdowns. The industry witnessed a surge in overall travel and casino demand this summer. However, Wynn, which earns a majority of its casino revenue from Macau, is still reeling from China’s stringent COVID-19-related lockdowns. WYNN stock has lost 27.2% year to date.
Wynn is slated to report its third quarter Fiscal 2022 results on November 7. The Street expects Wynn to report an adjusted diluted loss of $1.14 per share, lower than the prior-year quarter’s figure of $1.24 per share.
Is Wynn a Buy, Sell, or Hold?
On TipRanks, Wynn Resorts stock has a Moderate Buy consensus rating. This is based on six Buys versus four Hold ratings. The average Wynn Resorts price forecast of $85.67 implies 34.07% upside potential to current levels.
Currently, Wynn is trading at a relatively higher beta compared to peers, reflecting sensitivity to market momentum. Wynn has a beta of 1.39, implying that if the market moves by (+/-)10%, Wynn stock could move roughly by about (+/-)13.9%.
