Amundi Reduces Position in Wynn Resorts, Limited $WYNN

Key Points

• Amundi cut its Wynn Resorts position by 39.3% in the second quarter, selling 25,717 shares and retaining 39,775 shares worth approximately $3.86 million. Institutional investors overall own 88.64% of the company.
• Wynn reported quarterly EPS of $1.24, beating estimates by $0.25, while revenue rose 6.9% year over year to $1.86 billion. The company also maintains a $0.25 quarterly dividend, equivalent to a 1.1% annual yield.
• Despite analysts’ broadly bullish “Moderate Buy” consensus and an average $133.35 price target, the stock recently opened at $87.70 near its 52-week low, amid concerns about debt costs, slow credit improvement and weak market momentum.

Amundi decreased its holdings in Wynn Resorts, Limited (NASDAQ:WYNN - Free Report) by 39.3% in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 39,775 shares of the casino operator's stock after selling 25,717 shares during the period. Amundi's holdings in Wynn Resorts were worth $3,862,000 at the end of the most recent quarter.

A number of other institutional investors have also bought and sold shares of WYNN. Capital World Investors lifted its position in Wynn Resorts by 0.6% during the fourth quarter. Capital World Investors now owns 9,542,392 shares of the casino operator's stock worth $1,148,236,000 after buying an additional 61,209 shares in the last quarter. California State Teachers Retirement System raised its holdings in shares of Wynn Resorts by 9,349.7% during the 2nd quarter. California State Teachers Retirement System now owns 9,093,255 shares of the casino operator's stock worth $882,864,000 after acquiring an additional 8,997,027 shares during the period. BlackRock Inc. acquired a new position in shares of Wynn Resorts during the 2nd quarter valued at about $609,566,000. Barrow Hanley Mewhinney & Strauss LLC grew its holdings in shares of Wynn Resorts by 9.5% in the fourth quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 3,680,631 shares of the casino operator's stock valued at $442,890,000 after purchasing an additional 320,502 shares during the period. Finally, Egerton Capital UK LLP acquired a new stake in Wynn Resorts during the fourth quarter worth about $249,053,000. 88.64% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Wynn Resorts

Here are the key news stories impacting Wynn Resorts this week:

• Positive Sentiment: UBS remains bullish despite a lower target. UBS reduced its price target from $145 to $138 but maintained a “buy” rating, implying substantial upside from current levels. The lower target may reflect more cautious assumptions rather than a change in its overall view. Benzinga analyst ratings
• Neutral Sentiment: Options activity suggests traders are positioning for a potentially large move. Elevated or notable options-market activity indicates uncertainty and expectations for increased volatility, but it does not establish a clear directional signal. Options traders betting on a big move in Wynn Resorts stock
• Neutral Sentiment: Wynn priced $900 million of senior notes due 2035 at a 6.875% coupon. The offering extends the company’s debt maturities and provides liquidity, but the relatively high interest rate increases financing costs. Proceeds and use-of-funds details were not provided in the reports. Wynn Resorts prices senior notes offering
• Negative Sentiment: Credit concerns are weighing on the financing news. Fitch reportedly characterized Wynn’s credit improvement as “slow,” reinforcing investor concerns about leverage and the cost of servicing debt. The new notes’ high coupon may add to those worries. Wynn Resorts senior notes and Fitch credit outlook
• Negative Sentiment: Recent market momentum has been poor. Wynn underperformed competitors and touched a new 52-week low, signaling continued selling pressure and weakening investor sentiment. Wynn Resorts reaches 52-week low
• Negative Sentiment: Former Wynn Las Vegas employees allege they were fired because of union activity. If substantiated, the claims could create labor-relations, legal and reputational risks for Wynn Resorts. Former Wynn Las Vegas employees allege firings tied to union activity

Wynn Resorts Stock Performance

Wynn Resorts stock opened at $87.70 on Friday. The company's 50 day simple moving average is $97.22 and its 200-day simple moving average is $100.77. The company has a market capitalization of $9.03 billion, a price-to-earnings ratio of 21.76, a price-to-earnings-growth ratio of 1.05 and a beta of 1.00. Wynn Resorts, Limited has a 1 year low of $86.96 and a 1 year high of $134.72.

Wynn Resorts (NASDAQ:WYNN - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The casino operator reported $1.24 EPS for the quarter, topping analysts' consensus estimates of $0.99 by $0.25. The company had revenue of $1.86 billion for the quarter, compared to analysts' expectations of $1.83 billion. Wynn Resorts had a negative return on equity of 46.52% and a net margin of 6.05%.The firm's revenue was up 6.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.09 earnings per share. Equities analysts expect that Wynn Resorts, Limited will post 4.55 earnings per share for the current year.

Wynn Resorts Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Friday, August 14th were issued a $0.25 dividend. The ex-dividend date was Friday, August 14th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.1%. Wynn Resorts's payout ratio is 24.81%.

Analysts Set New Price Targets

WYNN has been the topic of a number of analyst reports. Zacks Research raised shares of Wynn Resorts from a "strong sell" rating to a "hold" rating in a research note on Monday, August 10th. Stifel Nicolaus set a $143.00 price target on shares of Wynn Resorts in a report on Wednesday, August 5th. Argus lifted their price target on shares of Wynn Resorts from $115.00 to $130.00 and gave the company a "buy" rating in a research report on Thursday, August 6th. Morgan Stanley reaffirmed an "overweight" rating and set a $128.00 price target on shares of Wynn Resorts in a research report on Wednesday, July 22nd. Finally, Citigroup reiterated a "buy" rating on shares of Wynn Resorts in a research report on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, Wynn Resorts currently has an average rating of "Moderate Buy" and a consensus target price of $133.35.

About Wynn Resorts

Wynn Resorts, Ltd. is a global luxury hospitality and entertainment company that develops and operates integrated resorts. Its properties combine casino gaming with hotel accommodations, fine dining, retail shopping, nightlife, entertainment, spas and meeting facilities.

The company operates Wynn Las Vegas and Encore Las Vegas in Nevada, Encore Boston Harbor in Massachusetts, and Wynn Macau and Encore Macau in Macau. These properties serve leisure and business travelers, gaming customers and convention guests across the United States and Asia.

Founded in 2002 by casino executive Steve Wynn, Wynn Resorts has expanded its portfolio through destination resorts focused on premium service and design.

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