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Could The Wynn Resorts, Limited (NASDAQ:WYNN) Ownership Structure Tell Us Something Useful?

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ownership-breakdown

The big shareholder groups in Wynn Resorts, Limited (NASDAQ:WYNN) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, ‘Don’t tell me what you think, tell me what you have in your portfolio.

Wynn Resorts is a pretty big company. It has a market capitalization of US$8.8b. Normally institutions would own a significant portion of a company this size. In the chart below, we can see that institutional investors have bought into the company. Let’s delve deeper into each type of owner, to discover more about Wynn Resorts.

View our latest analysis for Wynn Resorts

What Does The Institutional Ownership Tell Us About Wynn Resorts?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Wynn Resorts. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Wynn Resorts’ historic earnings and revenue below, but keep in mind there’s always more to the story.

earnings-and-revenue-growth

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Wynn Resorts is not owned by hedge funds. The Vanguard Group, Inc. is currently the company’s largest shareholder with 9.8% of shares outstanding. With 8.9% and 7.9% of the shares outstanding respectively, Elaine Wynn and T. Rowe Price Group, Inc. are the second and third largest shareholders.

We did some more digging and found that 10 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Wynn Resorts

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

It seems insiders own a significant proportion of Wynn Resorts, Limited. It has a market capitalization of just US$8.8b, and insiders have US$887m worth of shares in their own names. That’s quite significant. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 18% ownership, the general public have some degree of sway over Wynn Resorts. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. To that end, you should learn about the 2 warning signs we’ve spotted with Wynn Resorts (including 1 which is doesn’t sit too well with us) .

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

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Christine founded Sports Grind Entertainment with an aim to bring relevant and unaltered Sports news to the general public with a specific view point for each story catered by the team. She is a proficient journalist who holds a reputable portfolio with proficiency in content analysis and research.

Christine founded Sports Grind Entertainment with an aim to bring relevant and unaltered Sports news to the general public with a specific view point for each story catered by the team. She is a proficient journalist who holds a reputable portfolio with proficiency in content analysis and research.

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Ron Paul hospitalized after apparently suffering medical emergency during livestream

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Ron Paul hospitalized after apparently suffering medical emergency during livestream

Former Rep. Ron Paul says he’s “doing fine” after being hospitalized in Texas.

After alarming video emerged on Friday showing Paul starting to slur his words as he spoke during a livestream, Fox News reported that the former congressman was hospitalized for “precautionary” reasons. Fox News’ Harris Faulkner also reported that Paul is “lucid and optimistic” at the hospital, according to the Washington Examiner.

A picture that was soon posted to Paul’s Twitter account showed him giving a thumbs up at the hospital, while a message from the former congressman said, “I am doing fine. Thank you for your concern.” His son, Sen. Rand Paul (R-Ky.), also tweeted, “Thank God, Dad is doing well. Thank you for all your prayers today.”

Sen. Ted Cruz (R-Texas) was among those who had quickly wished Paul well on Twitter following the livestream, tweeting, “For many decades, he has been an extraordinary warrior for liberty. May God’s healing hand be upon Dr. Paul, and may God’s peace and grace be upon the entire family.”

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Trump will reportedly nominate Amy Coney Barrett to replace RBG

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Christine founded Sports Grind Entertainment with an aim to bring relevant and unaltered Sports news to the general public with a specific view point for each story catered by the team. She is a proficient journalist who holds a reputable portfolio with proficiency in content analysis and research.

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Trump’s proposed college student visa changes worry international students — again

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Trump's proposed college student visa changes worry international students — again

Leon Lewis-Nicol can still hear the gunshots. If he closes his eyes, he can picture the burning buildings. 

As a child in Freetown, Sierra Leone, a nation in West Africa devastated by civil war, Lewis-Nicol often imagined a better, safer life. His family fled the fighting, then returned to Sierra Leone, before ultimately moving to Ghana, some 900 miles away, when he was 15. But friends who traveled around the world used to speak of an even safer place, with clean streets and unlimited opportunities: the United States.

Lewis-Nicol knew he had to go.

Now, the 24-year-old is here, studying to receive his master’s degree in jazz performance from Millikin University, a small, private school in Decatur, Illinois. He’s been in the states four years, set to graduate in 2022. But he wonders if other West African natives like him will soon have the same chance. 

This week, President Donald Trump’s administration unveiled proposed rule changes that would dramatically alter student visas, leaving the international student community reeling just a few weeks into the 2020-21 academic year. The proposed changes — which are detailed in a 256-page document online and have already drawn hundreds of public comments — could devastate science research and tech innovation nationwide, experts warn. 

“The overall tone of the proposed rules sends a chilling message to current and prospective international students that we are no longer a welcoming nation,” said Stephen Yale-Loehr, a professor and attorney at Cornell Law School who specializes in immigration law. “It says we’re more focused on national security threats, and that we suspect they could be coming here to do harm rather than help the U.S.”

Put another way: “It feels terrible,” Lewis-Nicol said. “The stigma is that if you’re from Africa, you’re not wanted and that your dreams are not as valid.” 

The proposal comes on the heels of the Trump administration’s introduction — and then abandonment — of a controversial rule barring international students from living in the U.S. while taking fall classes online due to the pandemic. The administration scrapped the policy after a slew of lawsuits.

According to Yale-Loehr’s analysis, the latest proposed changes would, among other things: 

  • Require most international students to finish their studies in four years — even though, according to the National Student Clearinghouse, most first-time college students take more than five years to earn a bachelor’s degree, and many doctoral programs also take more than four years;

  • Limit stays for some international students to just two years;

  • Require many international students to apply for extensions to their visas with no guarantee that they’d receive them, especially if the immigration agency determines that the student is not making sufficient progress toward their degree.

Students born in certain countries — particularly African nations, as well as Middle Eastern countries such as Afghanistan, Iran and Iraq — would be limited to two-year visas, which means no four-year degrees. 

To stay in America, or go home? Coronavirus pandemic brings stress, fear for international students.

At Millikin in Illinois, roughly 50% of the international student population comes from countries whose citizens would be restricted by the rules, such as Rwanda, Senegal, Sierra Leone, Cameroon and Nepal, among others. 

The college’s Center for International Education is “sending things out almost constantly trying to calm the fears of our international students,” Director Briana Quintenz said.

“It’s so unfair to them that they can’t just enjoy their college experience,” Quintenz said. “They have to continually dissect these very confusing regulations that seem to be coming out all the time. … My biggest concern is that the already very rigid restrictions are going to become even more complicated, and international students are just going to stop trying to come to the U.S.”

Yale-Loehr said the proposed changes don’t necessarily come as a surprise. 

“This is part of a larger anti-immigrant trend coming from this administration,” Yale-Loehr said.

President Donald Trump speaks during a news briefing at the White House, Thursday, July 2, 2020, in Washington. (AP Photo/Evan Vucci)

If the rule passes, it would be the biggest change to international student regulation in almost 20 years.

Trump admin. drops visa rule against online-only classes: But some new international students were still barred from U.S.

After 9/11, the Department of Homeland Security started a new program requiring colleges to monitor international students to ensure they were here studying and not for alternative purposes. Schools track if international students don’t take a full course load or suddenly drop out. 

The system is “cumbersome,” Yale-Loehr said, but it works: Universities are able to see which students are falling through the cracks. The proposed rule changes imply the existing system needs revamping, he said, “when colleges would tell you it’s working just fine.” 

But the Trump administration said the rule would strengthen the system for making sure only legitimate students friendly to the U.S. come to the country’s universities.

“Amending the relevant regulations is critical in improving program oversight mechanisms; preventing foreign adversaries from exploiting the country’s education environment; and properly enforcing and strengthening U.S. immigration laws,” said Ken Cuccinelli, a senior immigration official in the Department of Homeland Security. 

Foreign students could apply to extend their stay or reapply for admission to the country, Cuccinelli said.

Economic impact would be ‘detrimental’

International students make up roughly 5% of students at American universities and colleges, and their economic impact alone is staggering. According to NAFSA, the association of international educators, 1 million international students contributed $41 billion to the U.S. economy in the 2018-19 academic year. 

COVID-19, visas, Trump: International students turning away from US colleges for lots of reasons

Most international students pay full, out-of-state tuition costs, a boon to universities and one that allows them to keep costs lower for domestic students. And the money they spend on rent and at local restaurants is especially important in Midwest college towns that have been hit hard by recessions, said Gaurav Khanna, an economist at the University of California, San Diego. Then there’s the academic concerns. 

“This wouldn’t just affect the university sector,” Khanna said. “While international students are here, they do critical research, but then after they graduate, a lot of them join the science and tech sector, where a lot of innovation happens.” 

But international students say their contributions go beyond the economy. 

Dev Purandare is a doctoral computer science student at the University of California, Santa Cruz, who came to the U.S. from India four years ago. Like most international students, he grew up believing the American higher education system was second to none. 

“For education, you can’t do much better,” Purandare said. “We can come here and get degrees, participate in research. But we also contribute. Over the course of my career, I’ve been a teaching assistant, I’ve taught courses, and right now I’m mentoring undergraduate and graduate students. And many of them are from California.” 

The uncertain future has shaken Purandare and other students. 

“It’s demoralizing to international students to have to face a new crisis every month and wonder if we’ll be able to continue what we’re doing,” he said. “The lack of stability is really harmful for productivity. I can’t make any sort of life plans. I can’t even get a cat — because what if I have to leave the next day, or the next week?”

Purandare is in the middle of his doctoral program, and his visa will be up for renewal in the next year. He’s worried about how that process could play out. But even if he’s OK, he said he’s likely to accept a post-doc position outside of the U.S., where he feels more welcome. 

Lewis-Nicol, the graduate student from Sierra Leone, agrees. 

Lewis-Nicol dreams of becoming such an accomplished musician, he can tour the world and win Grammys. But mostly, he wants to go back to Africa, build music schools and help his people. He thought the U.S. would be the best place to go to help fulfill his dreams, but he’s wondering now if he needs to look elsewhere. Maybe another country won’t define him solely by his birth place. 

“That’s why we’re leaving our countries, because we don’t want to be put in a box. We want opportunities,” he said. “If America doesn’t want me, maybe I’ll go to Canada, or somewhere else.” 

This article originally appeared on USA TODAY: Trump student visa rule: DHS pushes F1 changes for US colleges

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Christine founded Sports Grind Entertainment with an aim to bring relevant and unaltered Sports news to the general public with a specific view point for each story catered by the team. She is a proficient journalist who holds a reputable portfolio with proficiency in content analysis and research.

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GOP senator openly hopes Supreme Court battle will distract voters from 200,000 COVID-19 deaths

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Sen. Lamar Alexander
Sen. Lamar Alexander

Sen. Lamar Alexander Getty/Alex Wong

Sen. Lamar Alexander (R-TN) is openly hoping that a big fight over a Supreme Court nominee could distract voters from the 200,000-plus Americans who have died from the novel coronavirus on President Donald Trump’s watch.

In an interview with The New York Times, Alexander said that the Supreme Court battle is the party’s best chance to make the 2020 election about something other than Trump and the coronavirus pandemic.

“Either the election can be about Trump, or about COVID or about the Supreme Court,” Alexander explained. “And, I think, of those three, if it’s about the Supreme Court, that traditionally has helped Republicans more.”

To that end, Republicans are hoping that angry Democrats launch scathing personal attacks against the eventual nominee and will turn the entire hearing into a political circus similar to the one that occurred two years ago during confirmation hearings of Supreme Court Justice Brett Kavanaugh.

But while the Kavanaugh hearings may have helped GOP base turnout in the 2018 midterm elections, it didn’t stop Republicans from losing 40 seats in the House of Representatives, and Democrats won governorships that year in key swing states, such as Michigan and Wisconsin.

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Christine founded Sports Grind Entertainment with an aim to bring relevant and unaltered Sports news to the general public with a specific view point for each story catered by the team. She is a proficient journalist who holds a reputable portfolio with proficiency in content analysis and research.

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