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:
- The stock was sold by three or more insiders within one month.
- The stock was not purchased by any insiders in the month of intensive selling.
- At least two sellers decreased their holdings by more than 10%.
Wynn Resorts (WYNN) engages in the development, ownership, and operation of destination casino resorts.
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%|
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|
There have been 209,200 shares sold, and there have been zero shares purchased by insiders since January 2013.
Wynn Resorts reported the full-year 2013 financial results on January 30 with the following highlights:
|Net income||$728.7 million|
Wynn Resorts' upcoming milestones include to launch the Wynn Palace in 22 or 23 months.
(Source: December presentation)
|Qtrly Rev Growth (yoy):||0.18||-0.03||0.19||0.09|
|PEG (5 yr expected):||2.19||N/A||1.18||-8.12|
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|
Only Wynn Resorts has seen intensive insider selling during the last 30 days.
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.