History Says Wynn Resorts Stock Will Extend Fall in June

WYNN is trading near levels not seen since 2020

Deputy Editor
May 26, 2022 at 1:36 PM
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Shares of Wynn Resorts, Limited (NASDAQ:WYNN) are trading 7.6% higher today, last seen at $64.24. While WYNN continues to distance itself from a May 12, roughly 26-month low of $56.36, the descending 20-day moving average has once again stepped in to cap any breakout attempts. What's more, the equity sports a year-over-year and year-to-date deficit of 51.5% and 24.4%, respectively, and history shows June may see these losses grow even more. 

WYNN Chart May 26

In fact, according to data from Schaeffer's Senior Quantitative Analyst Rocky White, Wynn Resorts has been one of the worst stocks to own in June on the S&P 500 Index (SPX), looking back over the past 10 years. The shares have averaged a June loss of 2.9%, and finished the month higher just three times over the last decade. 

Worst of Chart May 26

Despite this lack of technical backdrop in place, there's plenty of optimism to be unwound on the casino stock. Of the nine analysts covering the shares, four maintain a "buy" or "strong buy" rating. What's more, the equity is ripe for some price target adjustments, as the 12-month consensus price target of $91.50 is a 42.5% premium to current levels.

Options traders, meanwhile, have favored calls in the last two weeks, and should this bullish sentiment begin to unwind, it could pressure the security even lower. In fact, at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), WYNN's 10-day call/put volume ratio of 2.81 sits higher than 80% readings from the past 12 months. 

It's also worth noting that short interest rose 28.4% in the most recent reporting period. Now, the 6.99 million shares sold short make up 6.6% of Wynn Resort stock's available float, or just over two days' worth of pent-up buying power. 

 

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