The casino stock typically underperforms in August
Shares of Wynn Resorts, Limited (NASDAQ:WYNN) are 4.4% lower at $79.22 at last check, pulling back from yesterday's bounce that followed the casino operators better-than-expected results for the second quarter.
On the charts, WYNN's 20-day moving average has steadily guided it lower since it touched an annual high of $110.38 on April 4. The security is now trading at its lowest levels since November 2022, down 13.1% in 2024. Plus, seasonality suggests the shares are going to drop even more.
According to data from Schaeffer's Senior Quantitative Analyst Rocky White, Wynn Resorts is one of the worst S&P 500 Index (SPX) stocks to own in August, looking back over the past 10 years. The shares averaged a loss of 5.2% for the month over the last decade, and finished the month lower seven times. A move of comparable magnitude would put the shares just above $75.
There's plenty of optimism to unwind amongst options traders and analysts as well. Of the 14 analysts in coverage, 11 recommend a "strong buy" rating, while its 12-month consensus price target of $123.67 is a 55.9% premium to current levels.
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 3.68, which ranks higher than 88% of readings from the past 12 months.