Wynn Resorts Sees Unusually Large Options Volume (NASDAQ:WYNN)

Key Points

• Unusual options activity: Investors bought 9,607 Wynn Resorts call options, about 41% above the average volume of 6,810 contracts.
• Institutional ownership remains high: Major investors including BlackRock, Barrow Hanley and Egerton Capital added or initiated positions, while institutional investors collectively own 88.64% of the company.
• Shares fell but analysts remain bullish: Wynn stock declined 1.2% to $81.97, despite beating quarterly earnings and revenue estimates. Analysts maintain a “Moderate Buy” consensus with an average price target of $133.35.

Wynn Resorts, Limited (NASDAQ:WYNN - Get Free Report) was the target of some unusual options trading activity on Friday. Investors bought 9,607 call options on the company. This represents an increase of approximately 41% compared to the average volume of 6,810 call options.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Capital World Investors increased its position in shares of Wynn Resorts by 0.6% in the fourth quarter. Capital World Investors now owns 9,542,392 shares of the casino operator's stock worth $1,148,236,000 after acquiring an additional 61,209 shares in the last quarter. BlackRock Inc. purchased a new position in Wynn Resorts in the second quarter valued at about $609,566,000. Barrow Hanley Mewhinney & Strauss LLC acquired a new position in shares of Wynn Resorts during the second quarter worth about $321,402,000. Egerton Capital UK LLP purchased a new stake in shares of Wynn Resorts in the fourth quarter worth about $249,053,000. Finally, Renaissance Technologies LLC raised its holdings in shares of Wynn Resorts by 17.4% during the 1st quarter. Renaissance Technologies LLC now owns 1,239,956 shares of the casino operator's stock valued at $125,918,000 after buying an additional 184,000 shares during the period. Hedge funds and other institutional investors own 88.64% of the company's stock.

Wynn Resorts Stock Down 1.2%

NASDAQ WYNN traded down $0.99 during trading hours on Friday, hitting $81.97. 800,748 shares of the company were exchanged, compared to its average volume of 1,578,276. Wynn Resorts has a 52 week low of $82.10 and a 52 week high of $134.72. The stock has a 50-day moving average price of $96.27 and a 200 day moving average price of $100.07. The stock has a market cap of $8.44 billion, a PE ratio of 20.37, a price-to-earnings-growth ratio of 1.01 and a beta of 1.00.

Wynn Resorts (NASDAQ:WYNN - Get Free Report) last announced its earnings results on Tuesday, August 4th. The casino operator reported $1.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.99 by $0.25. The business had revenue of $1.86 billion during the quarter, compared to analyst estimates of $1.83 billion. Wynn Resorts had a negative return on equity of 46.52% and a net margin of 6.05%.The company's revenue for the quarter was up 6.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.09 earnings per share. As a group, sell-side analysts anticipate that Wynn Resorts will post 4.55 earnings per share for the current year.

Wynn Resorts Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Friday, August 14th were paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend was Friday, August 14th. Wynn Resorts's payout ratio is 24.81%.

Analysts Set New Price Targets

WYNN has been the topic of several recent research reports. Barclays raised their target price on shares of Wynn Resorts from $134.00 to $136.00 and gave the stock an "overweight" rating in a report on Wednesday, August 5th. Citigroup restated a "buy" rating on shares of Wynn Resorts in a research report on Thursday, August 6th. Wolfe Research initiated coverage on Wynn Resorts in a research note on Wednesday, September 2nd. They issued an "outperform" rating and a $128.00 price target on the stock. JPMorgan Chase & Co. cut their target price on shares of Wynn Resorts from $135.00 to $134.00 and set an "overweight" rating for the company in a research report on Wednesday, July 15th. Finally, Mizuho cut their price objective on shares of Wynn Resorts from $133.00 to $125.00 and set an "outperform" rating for the company in a research report on Tuesday, July 28th. One analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average 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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