Wynn Resorts has submitted a Securities and Exchange Commission Form 3, confirming that billionaire Tilman Fertitta has increased his stake in the company to over 10%. As a result, he is now considered a “business insider” for the casino & hospitality giant.
The Billionaire Became a Business Insider
Tilman Fertitta is no stranger to the casino and hospitality industries. As CEO of Fertitta Entertainment, which owns Golden Nugget, he is prepared to underpin Wynn’s business as its latest principal shareholder.
As a business insider for Wynn, he will enjoy a greater influence and will be able to influence the company’s direction. However, he would also have greater accountability and will be prohibited from short-selling stock.
For reference, Fertitta currently owns more shares in the company than Steve Wynn’s former wife, Elaine Wynn. The increase in his stake contradicts earlier claims by analysts who believed that the billionaire was not interested in becoming something more than an investor. Others, however, correctly predicted that Fertitta might expand its shareholding.
Fertitta Increased His Stake
Fertitta increased its stake in the company to 9.9% in November 2024. The latest release by Wynn says that he currently owns 10.9 million shares and has the right to buy an additional 1,683,500 shares of common stock at a price of $85.73.
Fertitta personally owns 161,925 shares. His Hospitality Headquarters is currently holding the majority of his stake which consists of 6,863,324 shares of common stock. An additional 10,000 shares of common stock are being held by Fertitta Entertainment Inc., while Fertitta Entertainment LLC holds the remaining 3,864,751 shares.
Tilman Fertitta is the sole shareholder of the former two companies and the sole indirect owner of Fertitta Entertainment LLC.
Investors Believe Wynn’s Stock Can Do Better
The purchase comes in the wake of media reports that claimed Fertitta is unhappy with the state of Wynn stock and believes that the company could do better.
Wynn’s stock, for context, is currently worth $91.03 apiece. It fluctuated greatly in 2024, reaching $110.38 at best and $71.63 at worst. While many believe that Wynn’s stock is underpriced, analysts are bullish on its hike in 2025.
In December, President Trump nominated Fertitta as the United States ambassador to Italy. Experts suggested that if his role is approved, it might change his dealings with Wynn Resorts.
Although people do not see Fertitta’s possible appointment as controversial, the confirmation process might take a while.
