Please ensure Javascript is enabled for purposes of website accessibility

Steve Wynn's Resignation Sends Wynn Resorts Soaring 10% Higher Today

By Travis Hoium - Feb 7, 2018 at 4:01PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

When the market cheers your exit, you know it's time to go.

What happened

Shares of gaming giant Wynn Resorts, Limited (WYNN -1.66%) jumped as much as 10.3% in trading today after the founder, CEO, and chairman Steve Wynn stepped down late last night. By 3 p.m. EST shares had settled down slightly, but traders were still cheering the move with shares trading 7.1% higher on the day.

So what

Late last month, the Wall Street Journal reported on sexual misconduct allegations against Steve Wynn over the course of at least two decades. He called the allegations "preposterous" at the time, but pressure mounted on Wynn Resorts to push Steve Wynn out.

The Macau skyline at night

Image source: Getty Images.

Last night, the company announced that Steve Wynn had given his resignation and the board of directors accepted "with a collective heavy heart." It's likely that regulators played some role in the resignation, especially considering that Massachusetts regulators said they would open an investigation into the allegations. They didn't need Steve Wynn overshadowing the opening of Wynn Boston Harbor in the middle of next year.

President Matt Maddox, who was Steve Wynn's right-hand man, will take over as CEO.

Now what

When the market celebrates your exit, it probably means it was time to go. Steve Wynn had become the story, more than Wynn Resorts; if he had stayed we might have seen customers avoid the company's properties under public pressure.

We don't know if Steve Wynn will be able to keep his stake in the company, which would mean he'd need to keep a gaming license, but in the next few weeks we'll get details of arrangements surrounding his departure. It's the end of an era in Las Vegas, but that didn't stop the market from cheering Steve Wynn's resignation today.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Wynn Resorts, Limited Stock Quote
Wynn Resorts, Limited
$57.22 (-1.66%) $0.96

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/05/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.