We recently compiled a list of the 10 Large-Cap Stocks with Insider Buying in 2025. In this article, we are going to take a look at where Wynn Resorts, Limited (NASDAQ:WYNN) stands against the other large-cap stocks.
Insider buying is one of the strongest indirect signals that analysts and successful investors often use to assess whether a stock is undervalued or not. The intuition behind this stems from the fact that high-ranked insiders such as named executive officers and directors possess confidential information that may give greater visibility into the company’s future and growth trajectory. Insiders leverage such information as real-time data on sales and orders, and discussions with key clients, suppliers and other stakeholders, to form a better understanding of the company’s valuation. For instance, insiders often show net selling of their own company stock at peak valuations, just days or weeks before a major market correction happens; and vice versa, insiders often show net buying at or near market bottoms, days or weeks before the stock price starts to increase. This is clearly not a coincidence most of the time. Also, many successful investors emphasized the idea that insider buying is often a stronger signal than selling. Here is what Peter Lynch, one of the greatest ever, said on this topic:
“Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.”
With the US stock market having experienced a very strong bull market for the last 2 years, insider buying has become increasingly muted, with insider selling starting to prevail, especially in apparently overbought sectors like technology. This trend suggests that executives and institutional investors may see limited upside in certain high-flying stocks, prompting them to lock in gains. However, a significant portion of those strong returns have been driven only by a handful of companies, often called the “Magnificent 8”, which experienced an uplift from AI and other megatrends. At the same time, on an equal-weight basis, the US stock market has had a more modest performance. Some sectors like healthcare are at or near multi-year lows on a relative basis, driven by a combination of headwinds as well as a lack of tailwinds to the same extent as the technology leaders. The key takeaway for investors is that regardless of what point in the cycle we are, or how long into a bull market we are, both buying and selling opportunities will exist.
ALSO READ: 10 Technology Stocks with Insider Buying in 2024
The US stock market is still near its early 2025 all-time high and exhibits peak concentration and net insider selling. We believe that at such extreme points, when high valuation concerns are widely spread in the news, the signals provided by insiders buying their own company stocks are more valuable than ever. Their actions can indicate where genuine value exists beneath the broader market’s surface, highlighting sectors or individual companies that may be overlooked or undervalued. Insider buying in such an environment suggests confidence in a company’s long-term fundamentals, despite broader market uncertainties or short-term volatility. Investors who pay close attention to these signals may uncover opportunities in sectors that have lagged behind, offering potential for strong future returns as market conditions evolve. Last but not least, large-cap companies are usually widely followed and exhibit more price efficiency; consequently, insider buying signals in these stocks are even more relevant in our opinion.
Our Methodology
We used Insider Monkey’s insider trading stock screener to find large-cap stocks with at least two insiders buying shares worth at least $100,000 in the last six months. We believe that multiple insiders buying significant amounts of stock represents a higher chance that insiders have high confidence in the company. For all the companies, we also include the number of hedge funds tracked by Insider Monkey, as of Q4 2024, that own the stock. The stocks are ranked in ascending order of their hedge fund holdings.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Aerial view of a luxury hotel tower surrounded by lush green landscaping.
Wynn Resorts, Limited (NASDAQ:WYNN)
Number of Hedge Fund Holders: 64
Wynn Resorts, Limited (NASDAQ:WYNN) is a prominent developer and operator of luxury hotel-casino resorts. Established in 2002 by Steve Wynn, the company has expanded its portfolio to include several high-end properties. In Las Vegas, it operates Wynn Las Vegas and Encore Las Vegas. Internationally, WYNN owns Wynn Macau and Wynn Palace in Macau, China, and Encore Boston Harbor in Massachusetts. These resorts offer luxury accommodations, gaming facilities, dining, entertainment, and retail options. The company is also expanding into new markets, with Wynn Al Marjan Island currently under construction in the United Arab Emirates, expected to open in the first quarter of 2027.
Wynn Resorts, Limited (NASDAQ:WYNN) delivered another record year of adjusted property EBITDAR in 2024, including an annual record in Las Vegas. The company demonstrated strong operational performance in Las Vegas with table games drop remaining flat against tough comparisons and slot handle increasing by 13%, while gaming market share grew meaningfully in Q4. In Macau, the company generated $293 million of EBITDA during the fourth quarter, down about 1% year-over-year but up 11% sequentially, maintaining disciplined focus on maximizing EBITDA and healthy margin profile despite competitive market conditions.
Wynn Resorts, Limited (NASDAQ:WYNN) is making significant progress on Wynn Al Marjan Island in the UAE, with construction reaching the 35th floor and expectations that this will be a $3-5 billion gaming market over time. Looking ahead, the company has secured a landmark $2.4 billion financing package for the UAE project, marking the largest hospitality financing in UAE history, with planned opening in early 2027. The future appears great for WYNN, which is also signaled by at least 2 insiders buying more than $100,000 worth of stock in the last six months.
Overall WYNN ranks 3rd on our list of the large-cap stocks with insider buying in 2025. While we acknowledge the potential of WYNN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than WYNN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
