Wynn Resorts, Limited (NASDAQ:WYNN) is currently commanding significant attention from financial analysts, with a notable consensus emerging for a “Moderate Buy” recommendation. This optimistic outlook is underpinned by an average 12-month price target of $114.71, suggesting a promising trajectory for the luxury casino operator’s stock. Investors are keen to understand the factors contributing to this positive sentiment and what the future holds for this prominent player in the global hospitality and gaming sector.
The consensus rating stems from the coverage of fifteen prominent investment analysts who closely track Wynn Resorts’ performance. Among these experts, a clear preference for a positive stance is evident, with twelve analysts issuing a direct “buy” recommendation. A smaller contingent of three analysts, however, maintain a “hold” rating, indicating a more cautious, wait-and-see approach regarding the stock’s immediate potential.
Recent research reports have provided diverse insights into Wynn Resorts’ valuation and prospects. Argus, for instance, adjusted its rating from “buy” to “hold” in late April, reflecting a revised perspective. Conversely, Stifel Nicolaus set an encouraging $113.00 price target in early May, while Citigroup reiterated a “neutral” rating but notably increased its price target from $108.00 to $114.00 by early July, highlighting an improving outlook.
Further bullish sentiment was expressed by UBS Group, which reissued a “neutral” rating but elevated its price objective significantly from $83.00 to $101.00 in early July. Adding to the company’s visibility, The Goldman Sachs Group initiated coverage on Wynn Resorts in July with a “buy” rating and a substantial $122.00 price target, underscoring strong confidence in the company’s long-term value.
Institutional investors have also been actively rebalancing their portfolios, leading to notable shifts in Wynn Resorts stock ownership. Barrow Hanley Mewhinney & Strauss LLC significantly boosted its holdings by 18.4% in the fourth quarter, increasing its stake to over 3.1 million shares. Similarly, Geode Capital Management LLC and Jefferies Financial Group Inc. both incrementally raised their positions, while Renaissance Technologies LLC grew its ownership by 16.4%. Notably, Norges Bank acquired a new substantial stake, collectively demonstrating that a significant 88.64% of the stock is currently held by institutional investors.
From a market performance perspective, Wynn Resorts stock recently opened at $109.03. The company’s short-term fifty-day moving average price stands at $97.84, while its longer-term two-hundred-day moving average price is $88.72, indicating a positive trend. With a market capitalization of $11.40 billion, a P/E ratio of 30.29, and a PEG ratio of 3.03, the stock exhibits a beta of 1.37, suggesting a moderate correlation with overall market movements. Over the past year, the stock has traded within a range of $65.25 to $112.36.
The casino operator’s latest quarterly earnings, released in early May, reported $1.07 earnings per share, falling slightly short of the consensus estimate of $1.24. Revenue for the quarter stood at $1.70 billion, also below analyst expectations. Despite these figures, the company maintains a net margin of 6.17%. Looking ahead, sell-side analysts project Wynn Resorts to post 5.17 earnings per share for the current fiscal year. Furthermore, the company recently declared a quarterly dividend of $0.25, paid in late May, translating to an annualized dividend of $1.00 and a yield of 0.9%, with a dividend payout ratio of 27.78%.
Leave a Reply