New Wynn Casino and Lisboa Casino in Macau, China.
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Billionaire Tilman Fertitta increases his investment in Wynn Resorts That dropped to 9.9%, according to a filing with the Securities and Exchange Commission.
The filing suggested a passive stance, although multiple people familiar with the matter told CNBC they doubted Fertitta would make the request.
Affected by this news, Wynn’s stock price soared 9% on Thursday and was in line with the 200-day moving average. Over 20 years, the stock has shown a lot of volatility but not that much sustained growth.
Wynn stock relative to Marriott and Hilton.
The stock is up about 57% in two decades, while Marriott is up more than 950% in 20 years. Hilton went public in 2013 and its stock price has risen more than 500% since its listing.
Wynn Resorts and Fertitta declined to comment on his increase in stake.
Fertitta is the CEO of Landry’s, the owner of the Houston Rockets and eight Golden Nugget Casinos across the United States, including downtown Las Vegas. owner. He is planning to build a new 43-story casino resort on the Las Vegas Strip.
He’s often been outspoken about issues affecting Las Vegas, whether it’s Formula 1 or the historic union wage contract. Wynn Las Vegas is the top ultra-luxury resort on the Las Vegas Strip and owns two high-end resorts in Macau. Its customers are wealthier and generally shop and gamble more.
However, Wynn’s third-quarter profit fell short of expectations, and adjusted real estate EBITDA in Macau and Las Vegas also fell short of expectations. After a long period of popularity, the company’s real estate EBITDA began to show some weakness.
Analysts have occasionally questioned the company’s plans to develop or sell 162 acres of land in Las Vegas, including a 128-acre golf course and a 38-acre parcel across from the Las Vegas Strip resort.
Jefferies analyst David Katz estimated the land’s value in a June report at just over $2 billion, but noted “no apparent plans to develop or sell it.”
Some investors have complained privately that Wynn is focusing on trying to build new gaming markets in the Middle East while promoting its luxury brand clout and premier hotel status at home.
Wynn CEO Craig Billings has been focusing on his work in the United Arab Emirates during the company’s third-quarter earnings call earlier this month, at its investor day in October and in an interview with CNBC Opportunities seen.
Wynn Resorts owns a 40% stake in the new integrated casino resort in Ras Al Khaimah, United Arab Emirates, which is expected to cost $5.1 billion.
Today, the stock trades at about 70% higher than when Fertitta purchased 6.9 million shares in 2022 for about $54 per share. This position gives him a 6.2% stake in the company And makes him Wynn’s second-largest individual shareholder, behind co-founder Elaine Wynn.
Fertitta now owns 9.9% of the shares, replacing Elaine Wynn, who co-founded the company with her then-husband Steve Wynn and left the board at the end of 2020.
