Wynn Resorts (NASDAQ: WYNN) Stock: Climbing On Regained Hopes From Steve

Wynn Resorts, Limited (NASDAQ: WYNN)

Wynn Resorts is having an incredible day in the market today after a big move by Steve Wynn. Wynn made the decision to purchase a massive amount of shares in his own company. Today, well talk about why insider buying is important to watch, the stake Steve Wynn recently purchased in Wynn Resorts and what we can expect to see from WYNN moving forward.

Why Insider Transactions Are Important To Watch

As investors, we only know as much about a company we invest in as the insiders choose to disclose. While legalities require some information to be disclosed, we simply dont get the full picture. Therefore, its important to watch insider transactions. Ultimately, when an insider makes the decision to sell a massive stake in a company, investors can expect that some kind of bad news is on the way. Adversely, when an insider makes the decision to purchase a large stake in a company, as we saw with WYNN, we can expect that good news is on the horizons.

Steve Wynn Purchases More Than 1 Million WYNN Shares

Today, we got news that Steve Wynn made a very large purchase of shares in his own company. The Chairman and CEO of Wynn Resorts unloaded $63.8 million in exchange for more than a million shares in Wynn Resorts. The purchase took place on the NASDAQ open market starting on Friday and ending on Tuesday. The shares purchased ranged in price from $62.41 to $64.44 per share and the total number of shares purchased came in at 1,003,977. This is a huge purchase that shows that Steve Wynn has faith that the struggling stock is likely to pick up soon.

How The Market Reacted To The News

Any time we see a massive insider purchase, it insinuates to investors that the insider is confident that the stock is going to climb. As a result, investors get excited and we tend to see overwhelmingly positive movement in the stock as a result. Thats exactly what were seeing from Wynn Resorts. Currently (10:19), WYNN is trading at $70.18 per share after a gain of $8.38 per share or 13.56%.

What We Can Expect To See From WYNN Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from WYNN. Throughout the year, Chinas Macau district has been a major cause of concern for the company, causing declines that led to a 58% loss on the year. Nonetheless, I believe that weve seen the worst of the declines so far. While Wynn did struggle with tight regulations in Chinas Macau district, those regulations are starting to weaken. Were also seeing more gaming here in the United States and we should remember that WYNN plans on opening Wynn Palace Pin Macau in the Cotai region in China in 2016. All of this points to a stronger company with a stock thats likely to match over the long run. All in all, WYNN seems like a great investment at the moment, especially for those looking for long run gains throughout the year 2016.

What Do You Think?

Where do you think WYNN is headed moving forward and why? Let us know your opinion in the comments below!

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Article Source: Wynn Resorts (WYNN) Stock: Climbing On Regained Hopes From Steve

About Travis Garlick 1791 Articles
Been writing about and trading stocks since 2013. Manage a group of micro-cap investors on Facebook with over 15,000 members. Turned $8,500 into 185k the first year I started trading stocks and haven't looked back.