Wynn Resorts gains 13 pct after CEO buys shares

Dec 10, 2015 Newsdesk Latest News, Top of the deck, World  

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Shares of casino operator Wynn Resorts Ltd rose by 13.1 percent on the Nasdaq in New York on Wednesday, a day after the company announced in a filing that its chairman and chief executive Steve Wynn had acquired more than one million outstanding company shares on the open market.

Wynn Resorts closed at US$69.91 on Wednesday, up US$8.11.

Carlo Santarelli of Deutsche Bank Securities Inc had said in a note on Tuesday following news of Mr Wynn’s stock purchases: “In our view, any time a CEO buys a meaningful stake it sends a favourable message.”

Wynn Resorts is the parent of Macau casino operator Wynn Macau Ltd. Hong Kong-listed Wynn Macau’s shares were trading 5.5-percent higher at the opening of Thursday’s session.

The analyst added: “As it pertains to fundamentals, we believe Macau visibility remains low and we expect the market to remain challenged. If nothing else, from a fundamental perspective, we think this deal shows a confidence that the Wynn Palace development could be a premium share taker.”

On November 19, Wynn Resorts said it has delayed the opening of its US$4.1-billion Wynn Palace resort in Macau’s Cotai district by three months, to June 25.

Market wide, Macau’s casino gross gaming revenue for November fell by 32.3 percent from the prior-year period, the 18th straight month of GGR retreat measured year-on-year. It was the lowest monthly GGR tally since September 2010, according to official data.

Wynn Resorts’ stock had lost approximately 60 percent of its value in the 12 months to December 7.

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