Wynn stock skyrocketed after Fertitta secured a 6% stake

Wynn Resorts shares rocketed 11% to $65.13 (£56.43/€65.57) after it was disclosed that Tilman Fertitta, the billionaire Golden Nugget proprietor and television personality, had purchased a 6.1% interest in the firm.

Wynn stock skyrocketed after Fertitta secured a 6% stake – Finance – iGB

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Wynn Resorts shares rocketed 11% to $65.13 (£56.43/€65.57) after it was disclosed that Tilman Fertitta, the billionaire Golden Nugget proprietor and television personality, had purchased a 6.1% interest in the firm.

In a filing with the US Securities and Exchange Commission released over the weekend, Wynn revealed that Fertitta had acquired 6.9 million shares of the Las Vegas-based firm, making him the company’s second-largest individual stakeholder behind Elaine Wynn, who holds a 9% stake.

Fertitta has extensive experience in the hospitality and gaming sector through his ownership of the Golden Nugget casino chain.

The market responded positively to the news, sending Wynn’s share price on a wild ride. The company’s stock has fallen 51.5% since May 2021, as it has been impacted by the historically weak gaming environment in Macau, where Wynn has a substantial presence as one of six concessionaires.

In the company’s second-quarter financial report, Wynn’s loss expanded to $213.4 million from $173.3 million, an increase of 23.1%. Despite this, CEO Craig Billings remains optimistic about the long-term prospects of the region.

He stated: “In Macau, while COVID-19 related travel restrictions continue to affect our results, we remain confident that the market will benefit from the return of visitation over time.”

In spite of this, recent uncertainty lingers due to the Covid-19 pandemic and the MGM and Hyatt hotel closures. Nevertheless, Macau is exhibiting signs of recovery with revenue increasing by more than 30% quarter-over-quarter, offering a glimmer of hope. Beginning today, online visa regulations will be eased, which will give a boost to the city’s land-based gaming industry.

Tilman Fertitta, owner of the Houston Rockets, made his initial foray into the hotel industry after acquiring the San Luis Resort, Spa and Conference Center in Galveston, Texas. This agreement came after the publicly traded company Landry’s, Inc. acquired the company. Afterwards, the company acquired the Golden Nugget casino chain in 2005.

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