by Daniel R.C. DeLuca
PARADISE, NV — Wynn Resorts’ (WYNN) share price reached its peak in a period of one year on January 25, before plummeting 10% by Friday’s closing time on the stock market. At the time this article was written, share prices fell another $16.81. The sudden decline stems from accusations of sexual misconduct against CEO Stephen Wynn. According to an original report published in the Wall Street Journal, a number of Wynn’s employees have claimed to have been sexually abused by Mr. Wynn.
“Effective today I am resigning as Finance Chairman of the RNC,” announced Wynn, referring to the position within the Republican National Committee to which he was appointed earlier this month by President Trump.
Mr. Wynn’s stake in his company is roughly 12%. At a current share price of $181 (after hours), that stake is worth $2.23 billion. According to an analysis by Howard Klein, gaming topics writer for Seeking Alpha, WYNN may drop as many as $40 should Mr. Wynn also resign his post as CEO for Wynn Resorts.
Despite the immediate panic seen during last week’s selling frenzy, there may be opportunity for investors. Wynn Resorts is reporting a net profit of $1.69 billion trailing twelve months. Over the course of the last quarter, the company’s price per share has risen just shy of 26%; over the last year, the count grows to over 75%. As of today, the stock is unlikely to have fully stabilized, which could lead to a further decline – this may offer a unique chance for locals to own part of a foundational company integral to Las Vegas culture and tourism.