Wynn Resorts Shares Surge Due to Tilman Fertitta's Stake

Wynn Resorts (WYNN) shares surged over 10% in early Thursday trading after billionaire investor Tilman Fertitta disclosed a 9.9% passive stake in the company, according to a recent regulatory filing.

Fertitta, CEO and sole owner of Fertitta Entertainment Inc., now holds approximately 10.9 million shares of Wynn.

Fertitta's sizable stake has generated significant interest among investors, with CNBC's David Faber stating that while the stake is currently passive, "it's likely not going to be passive for long."

In late October 2022, it was revealed that Fertitta acquired a 6.1% stake in Wynn.

Earlier this month, analysts at Mizuho (NYSE:MFG) lowered their target for Wynn to $118 from $125, while maintaining an Outperform rating on the stock. The firm noted that Wynn reported lower-than-expected results.

> "Net/net the incremental data point from the 3Q was lower implied share in Macau for Aug/Sep, which causes us to moderate our estimates in 4Q and '25," they wrote, highlighting that Wynn was working on various initiatives to drive sequential market share.

Analysts concluded, "Long term, we don't believe anything has changed, with premium assets benefiting from the Macau recovery (e.g., stimulus), best-positioned in Las Vegas (unique assets and expand convention) and underappreciated upside from UAE longer term."