Casino operator Wynn Resorts saw its shares soar to $69.91 at the close in New York last week after its founder, Steve Wynn, bought over one million of the company’s shares on the open market.
A filing with Nasdaq suggested Wynn shelled out an estimated $63.9 million for the 1,003,977 shares worth between $62.41 per share and $64.44 per share. The purchase was made between Dec. 4 and Dec. 8.
Wynn is already indirectly holding stake amounting to 10,026,708 shares through the Wynn Family Ltd. Partnership. With this new purchase, he now owns—directly and indirectly—11,070,000 shares, according to a press release from Wynn Resorts.
Wynn’s personal holdings is about 11 percent of the total, but the man has a limited ability to sell his shares due to an agreement with his ex-wife Elaine Wynn, Bloomberg reported.
Still, analysts believe Wynn’s move sends out a “powerful” message, especially in light of the mogul’s ongoing spat with the Macau government.
Deutsche Bank analysts said they aren’t surprised that Wynn’s shares are up “given this is the meaningful insider purchase and the first sizeable open market purchase by Mr. Wynn in some time.”
“Furthermore, in our view, anytime a CEO buys a meaningful stake it sends a favorable message. However, in this instance, and assuming the shares are included in the unilateral agreement, which makes selling very difficult, we view the message as that much more forceful,” Deutsche Bank wrote in a research note following the purchase, according to Business Insider.
Wynn Resorts operates two properties, one in Las Vegas and one in Macau. And just recently, the casino boss went on a verbal rampage against Macau legislators after the Macau casino’s revenue fell 38 percent to $585 million in the third quarter of 2015.
Wynn said the policies of the city state’s government—particularly on the issue of new gaming table allocation—had become a “major issue” for casino operators, especially him as he plans to open the $4 billion Wynn Palace resort in Cotai next year.
The casino mogul said his new resort property is on track for a June 2016 opening, but much of the planning is “a guessing game” due to Macau government’s refusal to confirm how many new gaming tables Wynn Palace will be given.
