{"id":1469,"date":"2024-12-11T22:09:39","date_gmt":"2024-12-11T23:09:39","guid":{"rendered":"https:\/\/extraniceshirts.org\/?p=1469"},"modified":"2024-12-27T20:58:53","modified_gmt":"2024-12-27T20:58:53","slug":"wynn-unlikely-to-see-activist-action-says-analyst","status":"publish","type":"post","link":"https:\/\/extraniceshirts.org\/index.php\/2024\/12\/11\/wynn-unlikely-to-see-activist-action-says-analyst\/","title":{"rendered":"Wynn Unlikely to See Activist Action, Says Analyst"},"content":{"rendered":"

Wynn Resorts (NASDAQ: WYNN) stock is higher by 10.09% over the past month, a period in which a well-known investor upped his stake in the casino operator, but some analysts don\u2019t believe a takeover offer is on the table.<\/p>\n

\"Wynn
Wynn and Encore on the Las Vegas Strip. An analyst is bullish on the operator’s bonds but says a takeover is unlikely. (Image: Vegas Means Business<\/em>)<\/figcaption><\/figure>\n

In a new report to clients, GimmeCredit analyst Kim Noland acknowledged that Tilman Fertitta recently upping his Wynn stake to 9.9% from 6.1%<\/a> has been a catalyst for the shares, but that doesn\u2019t mean he\u2019s going to turn activist and pursue a takeover of the company.<\/p>\n

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Wynn\u02bcs common stock moved higher upon a recent report that Tilman Fertitta, a well-known gaming executive and investor, has increased his passive holding to 9.9%,\u201d wrote Noland. \u201cWe don\u02bct expect near term shareholder activism or a change in shareholder rewards.\u201d<\/p>\n<\/blockquote>\n

Since a November 13G filing with the Securities and Exchange Commission (SEC) revealed Fertitta boosted his Wynn stake, there\u2019s been chatter that the Golden Nugget owner could make a play for Wynn. The 13G filing is used by passive investors, but those market participants can later shift to 13D\u2019s to signal activism.<\/p>\n

Fertitta Not Signaling Interest in Wynn Activism<\/h2>\n

Including the acquisitions of Morton\u2019s Restaurant Group and McCormick & Schmick\u2019s, Fertitta has a history of taking passive stakes in companies and then turning activist.<\/p>\n

\n

Given that history and the billionaire\u2019s long-running interest in owning a Las Vegas Strip casino hotel, analysts acknowledge it\u2019s possible he\u2019s interested in acquiring Wynn, but those possibilities are remote<\/a>. As of yet, the Houston Rockets owner hasn\u2019t indicated he\u2019s pursuing an activist role at Wynn or that he wants to acquire majority control of the company.<\/p>\n<\/div>\n

There\u2019s been speculation that if Fertitta pushes for change at Wynn, it could be in the form of encouraging the operator to leverage its revered brand for expansion in the US where it currently runs just three gaming venues — Wynn and Encore Las Vegas, and Encore Boston Harbor.<\/p>\n

As things stand today, the only guaranteed upcoming addition to the operator\u2019s portfolio is Wynn Al Marjan Island in the United Arab Emirates<\/a> (UAE). Fertitta is the second-largest individual shareholder in the gaming company behind only Elaine Wynn.<\/p>\n

Wynn Bonds Look Appealing<\/h2>\n

While a takeover offer may not materialize over the near- to medium-term, there are other catalysts supporting the Wynn credit and equity investment theses, including a sturdy balance sheet, debut reduction efforts, and share repurchases.<\/p>\n

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Wynn\u02bcs global liquidity remains strong at near $3.5 billion, including cash and equivalents and revolver availability (Wynn extended near term maturity bank credit facilities),\u201d added Noland. \u201cAt quarter end debt was $11.79 billion but on October 1,the company repaid the 4.875% senior notes due 2024 in the amount of $600 million and the remaining $600 million of Wynn Las Vegas senior notes due 2025, resulting in significant debt reduction. Wynn continues its shareholder dividend and recently increased its share repurchase authorization to $1 billion.\u201d<\/p>\n<\/blockquote>\n

Noland has an \u201coutperform\u201d rating on Wynn bonds maturing in 2031 that carry a coupon of 7.125%.<\/p>\n

The post Wynn Unlikely to See Activist Action, Says Analyst<\/a> appeared first on Casino.org<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

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