PENN Entertainment (NASDAQ:PENN) Reaches New 52-Week Low – Should You Sell?

PENN Entertainment, Inc. (NASDAQ:PENN)’s share price reached a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $13.22 and last traded at $13.2580, with a volume of 3077495 shares changing hands. The stock had previously closed at $13.74.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on PENN shares. Citizens Jmp reduced their target price on shares of PENN Entertainment from $25.00 to $24.00 and set a “market outperform” rating on the stock in a research report on Friday, November 7th. Wells Fargo & Company initiated coverage on PENN Entertainment in a report on Tuesday, November 18th. They set an “underweight” rating and a $15.00 price objective on the stock. Jefferies Financial Group reaffirmed a “hold” rating and set a $17.00 target price on shares of PENN Entertainment in a research report on Wednesday, December 24th. Morgan Stanley dropped their price target on PENN Entertainment from $17.00 to $15.00 and set an “equal weight” rating on the stock in a research report on Friday, January 16th. Finally, Citigroup restated a “market outperform” rating on shares of PENN Entertainment in a research note on Monday, December 1st. Ten research analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $21.13.

PENN Entertainment Stock Down 2.4%

The business has a 50 day moving average of $14.30 and a two-hundred day moving average of $16.63. The stock has a market capitalization of $1.71 billion, a PE ratio of -2.02, a PEG ratio of 0.44 and a beta of 1.34. The company has a debt-to-equity ratio of 3.65, a quick ratio of 0.75 and a current ratio of 0.75.

PENN Entertainment (NASDAQ:PENN) last announced its earnings results on Thursday, November 6th. The company reported ($0.22) EPS for the quarter, missing analysts’ consensus estimates of ($0.10) by ($0.12). The firm had revenue of $1.72 billion during the quarter, compared to the consensus estimate of $1.73 billion. PENN Entertainment had a negative return on equity of 4.59% and a negative net margin of 13.24%.The business’s revenue for the quarter was up 4.8% compared to the same quarter last year. During the same quarter in the prior year, the firm posted ($0.24) earnings per share. Analysts predict that PENN Entertainment, Inc. will post -1.61 EPS for the current year.

Insider Activity

In other news, Director Gupta Vimla Black sold 7,987 shares of the stock in a transaction on Friday, November 14th. The stock was sold at an average price of $14.51, for a total transaction of $115,891.37. Following the completion of the sale, the director owned 25,000 shares in the company, valued at approximately $362,750. This represents a 24.21% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Felicia Hendrix acquired 7,315 shares of the stock in a transaction dated Friday, November 21st. The stock was acquired at an average cost of $13.79 per share, with a total value of $100,873.85. Following the transaction, the chief financial officer directly owned 119,448 shares in the company, valued at approximately $1,647,187.92. This represents a 6.52% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders purchased 62,015 shares of company stock worth $882,778. 2.67% of the stock is currently owned by insiders.

Institutional Investors Weigh In On PENN Entertainment

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. GAMMA Investing LLC boosted its holdings in PENN Entertainment by 22.4% in the third quarter. GAMMA Investing LLC now owns 3,042 shares of the company’s stock worth $59,000 after acquiring an additional 556 shares in the last quarter. Treasurer of the State of North Carolina raised its position in shares of PENN Entertainment by 1.1% in the 2nd quarter. Treasurer of the State of North Carolina now owns 69,676 shares of the company’s stock valued at $1,245,000 after purchasing an additional 745 shares during the last quarter. Jones Financial Companies Lllp boosted its stake in PENN Entertainment by 33.7% in the 3rd quarter. Jones Financial Companies Lllp now owns 3,273 shares of the company’s stock worth $65,000 after purchasing an additional 825 shares in the last quarter. Keybank National Association OH grew its position in PENN Entertainment by 6.3% during the 2nd quarter. Keybank National Association OH now owns 14,655 shares of the company’s stock worth $262,000 after purchasing an additional 870 shares during the last quarter. Finally, Blue Trust Inc. increased its stake in PENN Entertainment by 10.1% during the 3rd quarter. Blue Trust Inc. now owns 10,168 shares of the company’s stock valued at $196,000 after purchasing an additional 929 shares in the last quarter. 91.69% of the stock is currently owned by hedge funds and other institutional investors.

About PENN Entertainment

PENN Entertainment, Inc (NASDAQ: PENN) is a leading operator of gaming and racing facilities in the United States. The company’s business activities encompass land-based casinos, pari-mutuel racetracks, off-track wagering, and ancillary amenities such as hotels, restaurants and entertainment venues. In August 2022, the company rebranded from Penn National Gaming to PENN Entertainment to reflect its expanding footprint across digital and traditional segments of the gaming industry.

The company’s portfolio includes well-known properties under the Hollywood Casino and Ameristar Casino brands, located across multiple states including Pennsylvania, Ohio, Missouri and West Virginia.