PARADISE, Nev., Dec. 9 (UPI) -- Casino boss Steve Wynn has given investors in his company reason for optimism by purchasing a large block of shares in the company that bears his name -- at a time when those shares are seriously underperforming.
Wynn Resorts, which owns four casinos in Las Vegas and Macau, has fluctuated wildly on Wall Street this year -- reaching a high point in February of more than $160 per share, only to plummet to less than $51 per share in October.
In a grand show of confidence, owner Steve Wynn purchased more than a million additional shares last week, the company said Tuesday.
News of the stock buy sent Wynn shares (Nasdaq: WYNN) higher during trading Wednesday, which finished up 13 percent to nearly $70.
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Wynn now owns more than 11 million shares in the company.
Analysts say Wynn's investment is an unusually bullish move, as individual executives are typically hesitant to put their own money behind underperforming stock. According to research firm Trim Tabs, corporate insiders sold off $7.6 billion in various stocks last month -- the second-highest monthly sell-off of the year.
"The last time insider selling was higher was back in May, and the S&P 500 fell 6.4 percent in the following three months," Trim Tabs chief David Santschi said. "Amid a slow-growth economy, insiders are spending loads of shareholders' money on takeovers and buybacks to boost revenue as well as earnings per share, but they're selling hard with their own money."
Part of the problem for Wynn Resorts this year has been an aggressive government crackdown on corruption in Macau, which has led to lower gambling revenues for the company's casinos there. Two new Wynn resorts in Macau are in the works.
