Tilman Fertitta, a major holder at Wynn Resorts (WYNN), recently bought 400,000 shares. The buy increased his position by 3%, and came to a total cost of $27,872,500.
Fertitta was the last buyer with a 16,500 share pickup back in March for $1.38 million. Two company directors were also buyers back in February. Going further over the past two years, Wynn insiders were sellers of shares at far higher prices than where the stock trades today.
Overall, Wynn insiders own 21.6% of shares.
The hotel and casino operator is down 28% over the past year. Revenues have been flat, but earnings growth has slowed by 62%, and investors are wary about a further slowdown amid rising economic uncertainty.
Even with the decline, Wynn shares now trade for less than 15 times forward earnings, and could be set for a rebound as current economic uncertainties fade in time.
Action to take: Shares have been prone to several steep pullbacks before moving higher. At today’s prices, Wynn is in a heavily traded zone over the past few years.
Today’s buyers can get a 1.3% dividend, and could see double-digit profits in shares as market fears subside.
For traders, the June $80 calls, last trading for about $3.30, could see mid-double-digit returns from a pope higher in shares in the coming months. Traders may want to take quick profits given today’s volatile markets.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.