Rep. Crenshaw Bought Wynn Stock Before Tilman Fertitta Purchase Made Public

Posted on: December 27, 2024, 01:11h. 

Last updated on: December 27, 2024, 01:36h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

A Texas congressman bought shares of Wynn Resorts (NASDAQ: WYNN) just days before Tilman Fertitta’s stake in the casino operator was made public in October 2022.

Crenshaw
Rep. Dan Crenshaw (R-TX) bought shares of Wynn in 2022 before news of Tilman Fertitta’s stake in the company was made public. (Image: CNN)

On Oct. 25, 2022, Rep. Dan Crenshaw (R-TX) purchased between $1,001 and $15K worth of the gaming stock. Six days later, a Schedule 13G filing with the Securities and Exchange Commission (SEC) showed Fertitta Entertainment, Fertitta himself, and another entity purchased 6.91 million shares of Wynn, equivalent to 6.1% of the casino operator’s shares outstanding. Crenshaw’s buy was highlighted by Unusual Whales, a research firm that tracks stock trading by members of Congress.

Fertitta bought his initial stake in Wynn on Oct. 19, 2022, nearly a week before Crenshaw’s purchase. When Fertitta’s purchase of Wynn shares was publicly disseminated, it sparked a 10% intraday rally in the stock — one that swiftly made Crenshaw’s position a profitable one.

No Clear Ties Between Crenshaw, Fertitta

Fertitta, the owner of the Golden Nugget casino and Landry’s restaurant empires, is an active political donor with the bulk of his contributions directed to Republican candidates and committees, including President-elect Trump and Gov. Greg Abbott (R-TX).

Donation data published by Open Secrets dating back to 2018 — the year Crenshaw first ran for Congress — show no direct contributions by the Houston Rockets owner to the congressman. The congressman doesn’t represent the Houston-area district in which Fertitta resides, but Crenshaw’s district isn’t far from there.

The lack of clear, direct ties between Crenshaw and Fertitta could stoke speculation as to how the politician acquired information regarding the businessman’s interest in Wynn or if the congressman was simply lucky in making that investment.

Wynn isn’t a widely held stock among members of Congress, but in early 2022, Rep. Susie Lee (D-NV) revealed her now ex-husband Dan Lee bought shares in the casino operator. The only recent congressional purchase of the stock occurred in September when Rep. Ro Khanna (D-CA) bought $1,001 to $15K worth of shares, according to Unusual Whales.

Wynn Has Been a Winner for Crenshaw

Public outcry about congressional stock trading has surged in recent years and some politicians from both parties have proposed legislation that would ban members of the House and Senate from trading individual equities.

The issue has broad support among voters of both parties, many of whom are concerned that politicians are trading on inside information in search of quick profits.

As it pertains to Crenshaw’s Wynn stake, he still holds the stock, meaning he’s done so for more than two years — far from a short-term trade. He’s benefitted from that patience because last month it was revealed that Fertitta upped his position in the gaming company to nearly 10%, with that news contributing to a rally. Shares of Wynn are up 56% since Crenshaw’s purchase, according to Unusual Whales.