Wynn Resorts founder bought 1 million on own stock

Wynn Resorts founder Steve Wynn bought 1 million additional shares of the company, increasing its shares by 15 percent Wednesday.

According to a report from CNN, Wynn Resorts stocks have been performing badly in 2015. However, with its founder and CEO's investment announced Tuesday, investors gained more confidence on the company. After purchasing additional shares from December 4 to 8, Wynn now owns 11 million shares of the company. He is the third largest overall shareholder of the company, following Northern Cross and Southeastern Asset Management.

Bloomberg News reported that Wynn Resorts, which owns casinos in Macau and Las Vegas, went up to $69.91 at the close in New York Wednesday, leading in the Standard & Poor's 500 Index. Steve Wynn bought the shares at $66.5 million on the intraday high from December 4 to 8. Deutsche Bank AG analyst Carlo Santarelli said, "Anytime a CEO buys a meaningful stake it sends a favorable message."

The Motley Fool wrote that insider buying can signal strong stock performance ahead. With an insider like Steve, who is the founder and CEO of the company, this is truly a good sign that investors can be confident about.

Meanwhile, the Wynn Palace is just a few months from being finished; the company is seeing a positive outlook as 2016 fast approaches. The company is also working on the new Wynn Diamond casino operation.

Steve Wynn's move, however, can have a different meaning. It could mean he is confident that the Macau casino will recover very soon, or he is simply trying to gain more control over the company.

The company has faced a lot of challenges this year. Wynn's gambling income in Macau plunged as the Chinese government conducted a crack down on the industry due to corruption allegations. Shares of Wynn Resorts and Wynn Macau lost more than 50 percent of their value this year.