Wynn Resorts, Limited (NASDAQ: WYNN) faced a notable uptick in options trading on Tuesday, with investors purchasing 23,457 call options. This figure represents a significant 55% increase compared to the average volume of 15,128 call options typically observed. This surge in activity indicates heightened investor interest in the company, which operates luxury resorts and casinos.
In related insider trading news, Director Patricia Mulroy sold 4,438 shares of Wynn Resorts stock on September 2, 2023. The shares were sold at an average price of $125.00, resulting in a total transaction value of $554,750. Following this sale, Mulroy holds 3,066 shares valued at approximately $383,250, reflecting a 59.14% decrease in her position. This transaction has been reported in a filing with the Securities and Exchange Commission (SEC).
Investors’ sentiment has also shifted among institutional stakeholders. Several hedge funds have recently altered their positions in Wynn Resorts. For instance, Dagco Inc. and AlphaQuest LLC both acquired new stakes valued at $25,000 during the first quarter. Additionally, MUFG Securities EMEA plc and Root Financial Partners LLC entered the game with new stakes worth approximately $25,000 and $26,000 respectively. Furthermore, Manchester Capital Management LLC increased its stake by an impressive 1,500% during the second quarter, now owning 320 shares valued at $30,000. Overall, institutional investors collectively hold 88.64% of the company’s stock.
Stock Performance and Earnings Report
On Tuesday, Wynn Resorts’ shares traded up by $2.87, reaching $126.11. The trading volume for the day stood at 1,695,182 shares, compared to an average volume of 2,247,474 shares. Over the past year, shares have fluctuated between a low of $65.25 and a high of $134.23. The company’s current market capitalization is $13.11 billion, with a price-to-earnings (P/E) ratio of 37.93 and a beta of 1.32.
Wynn Resorts released its most recent earnings results on November 6, 2023, reporting earnings per share (EPS) of $0.86. This figure fell short of analysts’ consensus estimates of $1.09 by ($0.23). The company recorded a negative return on equity of 56.78% and a net margin of 5.51%. Despite this, Wynn Resorts generated revenue of $1.83 billion for the quarter, surpassing analyst estimates of $1.76 billion. In comparison to the same quarter last year, revenue increased by 8.3%, while EPS improved from $0.90.
Dividend Announcement
In a recent development, Wynn Resorts announced a quarterly dividend of $0.25 per share, set to be paid on November 26, 2023. Shareholders on record as of November 17, 2023 will be eligible for this dividend, with the ex-dividend date also falling on November 17. The annualized dividend amounts to $1.00 per share, translating to a dividend yield of 0.8%. Currently, the company’s payout ratio stands at 22.37%.
Wynn Resorts, Limited designs and operates integrated resorts across various segments, including Wynn Palace, Wynn Macau, Las Vegas Operations, and Encore Boston Harbor. As the company navigates a complex market, its performance and strategic decisions continue to attract significant attention from both investors and analysts alike.
