T. Rowe Price Group, an investment firm that once was the largest shareholder in Wynn Resorts Ltd., has severely cut its stake in the company, from a peak of 16.8 percent, to what is now 4.6 percent. The enormous sell-off marks the second time in less than three months Rowe has sold large.
Wynn Resorts spokesman Michael Weaver declined comment on the transaction. This move is at a time when Wynn continues to face a stressful situation in Macau, which is responsible for 65 percent of the company’s revenue and cash flow. Macau, which is in month 13 of continual gaming decline, comes with no light at the end of the tunnel for when things might, if ever, turn around.
Wynn Resorts has two properties in Macau, with its $4.1 billion Wynn Palace on the way in 2016. The sale makes CEO and Chairman Steve Wynn the largest shareholder, at just under 10 percent. His ex-wife Elaine also owns nearly 10 percent, although she has 500,000 less shares than Steve.
Wynn stock had a recent bump, going from $103.90 a share to $107.90 as it was reported Macau may soften up its smoking ban inside casinos.
