Steve Wynn buys one million shares of his company’s stock

Wynn Resorts Limited announced on Tuesday, Dec. 8 that Chairman and CEO Steven Wynn spent around $63.8 million to buy more than one million shares of his company’s stock on the NASDAQ open market.

This puts the total amount of shares owned by Steve Wynn, to 11.1 million shares.

In a filing with the Securities and Exchange Commission, the company said Wynn bought the shares between Friday and Tuesday at prices that ranged from $62.41 per share to $64.44 per share.

Shares of Wynn Resorts closed at $61.80 on the Nasdaq on Tuesday but rose as much as 15 percent following announcement of the stock purchase.

“Given this is the first meaningful insider purchase and the first sizeable open market purchase by Mr. Wynn in some time, and given current short interest levels (18% of the float), it should come as little surprise that shares are up,” Deutsche Bank wrote in a note following the purchase.

“Furthermore, in our view, anytime a CEO buys a meaningful stake it sends a favourable message. However, in this instance, and assuming the shares are included in the unilateral agreement, which makes selling very difficult, we view the message as that much more forceful.”

Macquarie Securities gaming analyst Chad Beynon said Wynn was buying “at near rock-bottom prices.”

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