Wynn Resorts (NYSE:WYNN) is a Las Vegas-based company that operates casinos and resorts. Shares have climbed 42.5% in 2019 as of close on April 5. The stock is still down 21% from the prior year.
Wynn Resorts earnings have continued to impress, but the stock has suffered in the shadow of a massive controversy surrounding founder Steve Wynn. In January 2018, the Wall Street Journal reported that dozens of former employees alleged they had been victims of sexual misconduct by Wynn. Steve Wynn elected to step down in February 2018.
In April 2018, Wynn Resorts requested the removal of Steve Wynn’s name from the Massachusetts gaming license.
In the full-year 2018. Wynn Resorts operating revenues increased 10.7% year-over-year to $6.72 billion. GAAP net income at Wynn Resorts fell to $584.2 million compared to $747.2 million in the prior year, largely due to a litigation settlement expense of $463.6 million.
Wynn Resorts has attempted to shed this controversy, but current management is still under fire and facing accusations of concealing the alleged misconduct. The stock has lost over $60 from a valuation over $200 back in May 2018.
Shares had an RSI of 76 as of close on April 5, which indicates that Wynn Resorts is in overbought territory right now.
The company is expected to release its first-quarter results for 2019 in late April. Investors should expect continued volatility as its management remains under fire in the spring.
