Analyst Warns of Short Squeeze in Wynn (WYNN)

BofA/Merrill Lynch maintained a Neutral rating on Wynn Resorts (NASDAQ: WYNN) with a price target of $72. Yesterday Chairman and CEO Stephen A. Wynn said he purchased a total of 1,003,977 shares on the open market from December 4 and December 8, increasing his stake to 11,070,000 shares. Analyst Shaun Kelley said he expects a "squeeze" in the stock today.

"In terms of why now, we have little insight. Mr. Wynn may see some positive sign we are unaware of but his own recent caution on the market as well as recent weekly trends cast doubt on this theory," said the analyst.

While not mentioned in the BofA report, recent Nasdaq data shows 18% of Wynn's float is held short.

For an analyst ratings summary and ratings history on Wynn Resorts click here. For more ratings news on Wynn Resorts click here.

Shares of Wynn Resorts closed at $61.80 yesterday.

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