Shares in Wynn Resorts soared by more than 8.6% on Thursday after billionaire Tilman Fertitta increased his stake in the casino operator to 9.9%, making him the largest shareholder in the company.
Fertitta, who now holds 10.9 million shares of Wynn Resorts, surpassed Elaine Wynn as the company’s top shareholder in what is currently described as a passive investment. This acquisition has spurred investor interest and boosted shares, with Wynn’s stock price opening at $87.40, closing at $93.22, and continuing to rise in after-hours trading. Trading volume on Thursday was more than triple the daily average.
Analysts view Wynn Resorts’ stock as undervalued, projecting long-term growth potential despite recent underperformance in its Macao properties and moderate fourth-quarter outlook. Fertitta’s purchase is seen as a signal of confidence in the company’s recovery prospects and strategic direction, particularly as it eyes expansion into untapped markets.
One significant growth driver is Wynn’s ambitious project in the United Arab Emirates, the Wynn Al Marjan Island resort, expected to open in 2027. Analysts forecast this development could yield $1.8 billion in annual revenue and add $12 per share to Wynn’s valuation, with Wynn maintaining an exclusive operating position in the region for three to five years. Other key growth areas include steady performance in Las Vegas and potential shareholder returns.
Challenges remain, however, including uncertainties around UAE gambling regulations and geopolitical risks in Wynn’s main markets. Nevertheless, Fertitta’s investment suggests confidence in the company’s growth trajectory.
Fertitta, a cousin to Station Casinos executives Frank and Lorenzo Fertitta, has not spoken publicly about his Wynn stake. However, some analysts expect Fertitta will become more active in future months, reports the Las Vegas Review-Journal.
In addition to his stake in Wynn, Fertitta is advancing plans for a new 2,420-room resort on the Las Vegas Strip, further expanding his hospitality portfolio.
Original article: https://www.yogonet.com/international/noticias/2024/11/15/85406-wynn-resorts-shares-surge-as-tilman-fertitta-increases-stake-to-become-top-shareholder
