Wynn CEO Buys 1 Million Shares; Is Current Valuation Indicative Of 'Unearthed Value'?

Analyst Carlo Santarelli mentioned, “Mr. Wynn acquired ~$63.8 multi-million worth of stock at an average price of ~$63.60 per share. With these purchases, Mr. Wynn now owns 11.07 multi-million shares or ~11 percent of the shares outstanding.”

Related Link: Susquehanna Sees Significant Value Amid Hotel M&A

'First Meaningful Insider Purchase' In A Long Time

Santarelli said that this was the “first meaningful insider purchase” and the first significant open market acquisition by Mr. Wynn in a long time. Santarelli believes that whenever a CEO acquires a significant stake, it sends a positive message.

According to the Deutsche Bank report, “While Mr. Wynn's purchase will likely be a much needed spark for shares, at least in the short term, we believe it is prudent to be realistic about what the purchase really implies.”

It is possible that Wynn might simply have perceived the current valuation as being inexpensive and indicative of “unearthed value.”

There does not appear to be any more reason for the stake purchase, given that Macau visibility continues to be low while the market continues to be challenged.

Santarelli believes that “this deal shows a confidence that the Wynn Palace development could be a premium share taker.”

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