5. Wynn Resorts, Limited (NASDAQ:WYNN)
Number of Hedge Fund Holders: 42
Wynn Resorts, Limited (NASDAQ:WYNN) operates luxury hotels and entertainment casinos. While the company has a significant presence in Las Vegas and Boston, its Macau operations are the ones driving significant revenues for the company.
Its famous hotels include the Wynn Palace which offers 14 food and beverage outlets, 107,000 square feet of retail space, and various gaming and entertainment facilities. Wynn Resorts, Limited (NASDAQ:WYNN) reported a record second-quarter Adjusted Property EBITDAR of $572 million indicating that it has finally gained back its lost momentum during the pandemic. The EBITDAR was up almost 9% year-over-year on the back of strong performance across all properties.
Macau operations witnessed significant improvement. Operating revenues from Wynn Palace increased by $79.7 million as compared to the second quarter of last year. Whereas, the operating revenues from Wynn Macau improved by $35.7 million during the same time.
While the investors are still praising the company for its comeback in Macau, management is eyeing the UAE market as well. Wynn Resorts, Limited (NASDAQ:WYNN) continues to focus on growth and is constructing Wynn Al Marjan Island in the UAE at a rapid speed. It plans to develop a resort with more than 1,500 rooms in the UAE, similar to the size of Encore Boston Harbor, which delivered operating revenue of $212.6 million for the second quarter of 2024.
Wynn Resorts, Limited (NASDAQ:WYNN) is one of the best Las Vegas stocks to buy now. It was held by 42 hedge funds in Q2 2024, with total positions worth $1.02 billion. Alkeon Capital Management was the company’s leading stakeholder in Q2, with a position worth $$259.5 million.
Baron Real Estate Fund featured stocks such as Wynn Resorts, Limited (NASDAQ:WYNN) in the fourth quarter 2023 investor letter. Headquartered in Las Vegas, Nevada, Wynn Resorts, Limited (NASDAQ:WYNN) designs, develops and operates destination casino resorts. On January 22, 2024, Wynn Resorts, Limited (NASDAQ:WYNN) stock closed at $92.07 per share. One-month return of Wynn Resorts, Limited (NASDAQ:WYNN) was 1.82%, and its shares lost 8.20% of their value over the last 52 weeks. Wynn Resorts, Limited (NASDAQ:WYNN) has a market capitalization of $10.399 billion.
Baron Real Estate Fund stated the following regarding Wynn Resorts, Limited (NASDAQ:WYNN) in its fourth quarter 2023 investor letter:
“The shares of Wynn Resorts, Limited (NASDAQ:WYNN), an owner and operator of hotels and casino resorts, declined modestly in the most recent quarter, in part due to concerns about economic weakness in China.
We remain optimistic about the multi-year prospects for the company. We believe the ongoing re-emergence of business activity in Macau will drive additional shareholder value. If cash flow returns to the level achieved in 2019 prior to COVID-19, we believe Wynn’s shares will increase 30% to 50% higher than where they have recently traded.
We believe additional drivers for future value creation beyond a re-emergence in Macau business activity include: (i) our expectation for long-term growth opportunities in the company’s U.S.-centric markets of Las Vegas and Boston, including an expansion of Wynn’s Encore Boston Harbor resort; (ii) Wynn’s plans to develop an integrated resort in the United Arab Emirates with 1,500 hotel rooms and a casino that is similar in size to that of Encore Boston Harbor; (iii) opportunities to improve cash-flow margins by rightsizing labor and achieving lower staff costs in Macau; (iv) the possibility that Wynn is granted a New York casino license; and (v) an expansion in the company’s valuation multiple to levels achieved prior to the pandemic.”
