Posted on: December 27, 2024, 01:11h.
Last updated on: December 27, 2024, 01:36h.
A Texas congressman purchased shares of Wynn Resorts (NASDAQ: WYNN) shortly before Tilman Fertitta’s investment in the casino company became public knowledge in October 2022.
On Oct. 25, 2022, Rep. Dan Crenshaw (R-TX) bought between $1,001 and $15,000 worth of Wynn stock. Six days later, a Schedule 13G filing with the Securities and Exchange Commission (SEC) revealed that Fertitta Entertainment, Tilman Fertitta, and another entity acquired 6.91 million shares of Wynn, equivalent to 6.1% of the company’s outstanding shares. Unusual Whales, a research firm that monitors stock trading by members of Congress, highlighted Crenshaw’s purchase.
Fertitta initially invested in Wynn on Oct. 19, 2022, nearly a week before Crenshaw’s transaction. When news of Fertitta’s investment in Wynn became public, it triggered a 10% intraday increase in the stock’s price – quickly turning Crenshaw’s position into a profitable one.
No Clear Ties Between Crenshaw and Fertitta
Fertitta, the owner of Golden Nugget casinos and Landry’s restaurants, is a generous political donor, with most donations going to Republican candidates and committees, including President-elect Trump and Gov. Greg Abbott (R-TX).
Open Secrets’ donation data from 2018 onwards, when Crenshaw first ran for Congress, shows no direct contributions from Fertitta to the congressman. While Crenshaw does not represent the same district as Fertitta, their districts are in close proximity.
The absence of clear ties between Crenshaw and Fertitta may raise speculation about how the congressman obtained information regarding Fertitta’s interest in Wynn or if it was purely luck that led to his investment.
Wynn is not a commonly held stock among members of Congress. In early 2022, Rep. Susie Lee (D-NV) disclosed that her now ex-husband had purchased shares of Wynn. The most recent congressional purchase of Wynn stock occurred in September when Rep. Ro Khanna (D-CA) bought $1,001 to $15,000 worth of shares, as reported by Unusual Whales.
Wynn Has Been a Successful Investment for Crenshaw
The public has expressed growing concerns about congressional stock trading, leading to proposed legislation from both parties seeking to prohibit House and Senate members from trading individual equities.
This issue has garnered widespread support among voters from both sides, who fear that politicians may be using insider information to make quick profits.
Regarding Crenshaw’s Wynn investment, he still holds the stock, demonstrating a long-term commitment of over two years. His patience has paid off, as Fertitta recently increased his stake in the gaming company to almost 10%, contributing to a stock rally. Since Crenshaw’s purchase, Wynn’s shares have risen by 56%, according to Unusual Whales.