Shares of Wynn Resorts, Limited (NASDAQ:WYNN) were down 7.4% at towards the end of the noon hour on January 29. The stock has fallen almost 20% since the found and chief executive officer Steve Wynn was accused of sexual misconduct by over 150 former employees.
The casino mogul was also recently appointed as the finance chair of the Republican National Committee, a post he has since resigned from following these allegations. Wynn donated to both the Hillary Clinton and Donald Trump campaigns during the 2016 election, in addition to Chris Christie and Jeb Bush during the Republican primaries.
Wynn has categorically denied the numerous accusations from former workers. Meanwhile, the Wynn Resorts board of directors has launched a formal investigation into the alleged sexual misconduct. The allegations also have the potential to derail a Wynn casino hotel project set to open in Boston in 2019. The Massachusetts Gaming Commissions has released a statement saying that it is monitoring the situation and will “conduct a regulatory review to of this matter to determine the appropriate next steps”.
Wynn Resorts is coming off a fourth quarter report that showed net revenues increase 29.9% to $1.69 billion. The company saw a net tax benefit of over $330 million from U.S. tax reform. It also posted a dividend of $0.50 per share representing a 1.2% dividend yield. Although these allegations may prove extremely damaging for Mr. Wynn, materially the situation at Wynn Resorts is still attractive for those pondering a buy.
