Key points:
- Fertitta increased his stake in Wynn Resorts to 9.9%, according to SEC filings
- Wynn’s stock price rose by 9% after the announcement on 14 November 2024
- Fertitta’s increased shareholding comes amid ongoing financial and operational developments at Wynn
Landry CEO Tilman Fertitta has become the largest individual shareholder in Wynn Resorts, according to a filing with the US Securities and Exchange Commission (SEC).
Fertitta’s stake now stands at 9.9%, surpassing Elaine Wynn, the company’s Co-Founder and previous top individual shareholder.
The announcement caused Wynn Resorts’ stock price to rise 9% on 14 November, closing at $93.22 after starting the day at $87.40.
This increase highlights investor confidence following Fertitta’s increased involvement. Fertitta, who also owns the Golden Nugget casino franchise and the NBA’s Houston Rockets, has been known for his outspoken views on Las Vegas business matters.
While the SEC filing describes his position as “passive”, his history suggests he may seek to influence the company’s strategic direction.
Fertitta’s investment in Wynn Resorts began in 2022, when he purchased 6.9m shares at $54 per share. Since then, the company’s stock has risen by approximately 70%.
However, Wynn’s long-term stock performance has trailed competitors such as Hilton and Marriott, which have seen growth of over 500% and 950%, respectively, over the past two decades.
Good to know: While Wynn Macau’s revenue grew by 19.3%, Las Vegas operations experienced a 1.9% decline. The company also faces a lawsuit from James Bay Resources, alleging negligence and unjust enrichment
This news comes as Wynn Resorts continues to face mixed financial results. In its Q3 2024 report, the company posted $1.69bn in revenue, a year-on-year increase of 1.3%, and significantly narrowed its net loss to $32.1m, a 72% improvement.
Wynn Resorts is expanding its portfolio, with the Wynn Al Marjan Island project in the United Arab Emirates expected to open in early 2027. This initiative is part of its strategy to enter new gaming markets, though some investors have expressed concerns about the company’s focus on international projects over its existing luxury properties.
Neither Fertitta nor Wynn Resorts have commented on the latest developments. The implications of Fertitta’s increased stake and its potential impact on Wynn Resorts’ future direction remain a point of interest among analysts and investors.
