Wynn Resorts: 4 Different Insiders Have Sold Shares This Month

Feb. 8.14 | About: Wynn Resorts, (WYNN)

In this article, I will feature one casino stock that has seen intensive insider selling during the last 30 days. Intensive insider selling can be defined by the following three criteria:

  1. The stock was sold by three or more insiders within one month.
  2. The stock was not purchased by any insiders in the month of intensive selling.
  3. At least two sellers decreased their holdings by more than 10%.

Wynn Resorts (NASDAQ:WYNN) engages in the development, ownership, and operation of destination casino resorts.

Click to enlarge

Insider selling during the last 30 days

Here is a table of Wynn Resorts' insider-trading activity during the last 30 days by insider.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Linda Chen President, Wynn International Marketing Feb 6 10,000 No 144,600 shares 6.5%
John Strzemp EVP Feb 4 5,000 No 250,500 shares 2.0%
Robert Miller Director Feb 3 10,000 No 2,500 shares 80.0%
Matt Maddox CFO Feb 3 30,000 No 73,560 shares 29.0%
Click to enlarge

There have been 55,000 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of Wynn Resorts' insider-trading activity by calendar month.

Month Insider selling / shares Insider buying / shares
February 2014 55,000 0
January 2014 0 0
December 2013 0 0
November 2013 20,000 0
October 2013 10,000 0
September 2013 0 0
August 2013 0 0
July 2013 0 0
June 2013 0 0
May 2013 119,200 0
April 2013 5,000 0
March 2013 0 0
February 2013 0 0
January 2013 0 0
Click to enlarge

There have been 209,200 shares sold, and there have been zero shares purchased by insiders since January 2013.

Financials

Wynn Resorts reported the full-year 2013 financial results on January 30 with the following highlights:

Revenue $5.6 billion
Net income $728.7 million
Cash $2.9 billion
Debt $6.6 billion
Click to enlarge

Upcoming milestones

Wynn Resorts' upcoming milestones include to launch the Wynn Palace in 22 or 23 months.

(Source: December presentation)

Competition

Wynn Resorts' competitors include Caesars Entertainment Corporation (NASDAQ:CZR), Las Vegas Sands (NYSE:LVS) and MGM Resorts International (NYSE:MGM). Here is a table comparing these companies.

Company WYNN CZR LVS MGM
Market Cap: 22.08B 3.11B 62.76B 12.13B
Employees: N/A 68,000 N/A 50,050
Qtrly Rev Growth (yoy): 0.18 -0.03 0.19 0.09
Revenue: 5.62B 8.34B 13.77B 9.23B
Gross Margin: 0.38 0.49 0.34 0.37
EBITDA: 1.68B 1.76B 4.46B 1.93B
Operating Margin: 0.23 0.11 0.25 0.12
Net Income: 728.65M -1.60B 2.31B -1.34B
EPS: 7.17 -13.23 2.79 -2.75
P/E: 30.62 N/A 27.47 N/A
PEG (5 yr expected): 2.19 N/A 1.18 -8.12
P/S: 3.88 0.36 4.53 1.29
Click to enlarge

Wynn Resorts has the second-highest P/S ratio among these four companies.

Here is a table of these competitors' insider-trading activities during the last 12 months.

Company Insider buying / shares Insider selling / shares
CZR 0 14,434
LVS 0 1,329,356
MGM

0

256,075
Click to enlarge

Only Wynn Resorts has seen intensive insider selling during the last 30 days.

Conclusion

There have been four different insiders selling Wynn Resorts, and there have not been any insiders buying Wynn Resorts during the last 30 days. Two of these four insiders decreased their holdings by more than 10%. Wynn Resorts has an insider ownership of 20.23%.

Before going short Wynn Resorts, I would like to get a bearish confirmation from the Point and Figure chart. The main reason for the proposed short entry is the intensive insider-selling activity.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.