The casino stock has historically struggled in June
Shares of Wynn Resorts, Limited (NASDAQ:WYNN) are reversing a rally off a pullback to the $95 region, last seen down 0.7% to trade at $102.04. For the quarter, the casino stock is down 8.7%, and history suggests that June may see the stock drop lower still.
In fact, according to data from Schaeffer's Senior Quantitative Analyst Rocky White, Wynn Resorts is the second worst stock on the S&P 500 Index (SPX) to own in June, looking back over the past 10 years. The shares averaged a loss of 4.3% for the month over the last decade, and finished the month lower eight times.
As for the brokerage bunch, there's plenty of optimism to be unwound. Of the nine analysts in coverage, six maintain a "strong buy" rating. Plus, the security is ripe for a round of price adjustments, given the 12-month consensus price target of $129.35 is a 26.5% premium to current levels.
A shift in the options pits could also weigh on WYNN. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Wynn Resorts stock sports a 50-day call/put volume ratio of 2.64, which ranks higher than all readings from the past 12 months.
It's also worth noting that the 7.13 million shares sold short make up 7.4% of the stock's available float. It would take nearly three days for these traders to buy back their bearish bets.