Is Wynn Resorts, Limited (NASDAQ:WYNN) a sound investment now? Prominent investors are becoming less hopeful. The number of bullish hedge fund positions stayed the same which is a slightly negative development in our experience.
In the financial world, there are dozens of methods investors can use to watch their holdings. Two of the best are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite money managers can trounce the broader indices by a solid amount (see just how much).
Equally as integral, bullish insider trading sentiment is another way to parse down the investments you're interested in. There are many incentives for an executive to sell shares of his or her company, but just one, very simple reason why they would behave bullishly. Plenty of academic studies have demonstrated the valuable potential of this tactic if investors understand what to do (learn more here).
With all of this in mind, we're going to take a gander at the latest action encompassing Wynn Resorts, Limited (NASDAQ:WYNN).
In preparation for this quarter, a total of 36 of the hedge funds we track were bullish in this stock, a change of 0% from the first quarter.
Because Wynn Resorts, Limited (NASDAQ:WYNN) has faced stagnant sentiment from the entirety of the hedge funds we track, we can see that there was a specific group of hedge funds who were dropping their entire stakes at the end of the first quarter. At the top of the heap, Murray Stahl's Horizon Asset Management dumped the biggest stake of the 450+ funds we key on, valued at an estimated $34.4 million in stock.. John Thaler's fund, JAT Capital Management, also cut its stock, about $18 million worth. These transactions are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Bullish insider trading is best served when the company we're looking at has seen transactions within the past half-year. Over the latest six-month time frame, Wynn Resorts, Limited (NASDAQ:WYNN) has experienced zero unique insiders purchasing, and 6 insider sales (see the details of insider trades here).
Let's check out hedge fund and insider activity in other stocks similar to Wynn Resorts, Limited (NASDAQ:WYNN). These stocks are Penn National Gaming, Inc (NASDAQ:PENN), Carnival Corporation (NYSE:CCL), MGM Resorts International (NYSE:MGM), Royal Caribbean Cruises Ltd. (NYSE:RCL), and Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL). All of these stocks are in the 0 industry and their market caps match WYNN's market cap.