PENN Entertainment (NASDAQ:PENN) Hits New 52-Week Low – Time to Sell?

PENN Entertainment, Inc. (NASDAQ:PENN)’s stock price reached a new 52-week low on Tuesday . The company traded as low as $12.55 and last traded at $12.60, with a volume of 2581510 shares. The stock had previously closed at $12.84.

Analyst Upgrades and Downgrades

A number of research analysts have commented on PENN shares. Stifel Nicolaus upgraded PENN Entertainment from a “hold” rating to a “buy” rating and upped their price target for the stock from $19.00 to $21.00 in a research note on Friday, November 7th. Deutsche Bank Aktiengesellschaft cut their price objective on PENN Entertainment from $19.00 to $17.00 and set a “hold” rating on the stock in a report on Friday, November 7th. Wells Fargo & Company assumed coverage on PENN Entertainment in a report on Tuesday, November 18th. They set an “underweight” rating and a $15.00 target price for the company. Citizens Jmp cut their price target on shares of PENN Entertainment from $25.00 to $24.00 and set a “market outperform” rating on the stock in a research note on Friday, November 7th. Finally, Jefferies Financial Group reissued a “hold” rating and set a $17.00 price target on shares of PENN Entertainment in a research report on Wednesday, December 24th. Ten equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $20.81.

PENN Entertainment Price Performance

The company has a 50 day moving average of $14.28 and a 200 day moving average of $16.57. The company has a debt-to-equity ratio of 3.65, a quick ratio of 0.75 and a current ratio of 0.75. The stock has a market capitalization of $1.68 billion, a price-to-earnings ratio of -1.98, a PEG ratio of 0.43 and a beta of 1.39.

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

Insider Activity

In other news, CEO Jay A. Snowden purchased 34,700 shares of the stock in a transaction on Friday, November 7th. The stock was bought at an average price of $14.32 per share, for a total transaction of $496,904.00. Following the acquisition, the chief executive officer directly owned 1,117,325 shares of the company’s stock, valued at approximately $16,000,094. The trade was a 3.21% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Gupta Vimla Black sold 7,987 shares of the stock in a transaction that occurred on Friday, November 14th. The shares were sold at an average price of $14.51, for a total transaction of $115,891.37. Following the completion of the sale, the director directly owned 25,000 shares in the company, valued at approximately $362,750. This represents a 24.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have purchased 62,015 shares of company stock worth $882,778 over the last three months. Insiders own 2.67% of the company’s stock.

Institutional Trading of PENN Entertainment

A number of hedge funds and other institutional investors have recently bought and sold shares of PENN. Hill Path Capital LP purchased a new stake in PENN Entertainment during the 2nd quarter worth about $62,595,000. Arrowstreet Capital Limited Partnership acquired a new stake in shares of PENN Entertainment during the 2nd quarter worth about $40,214,000. Norges Bank purchased a new stake in PENN Entertainment during the second quarter worth approximately $39,737,000. Hennessy Advisors Inc. purchased a new stake in PENN Entertainment during the third quarter worth approximately $40,537,000. Finally, Bridgeway Capital Management LLC acquired a new position in PENN Entertainment in the second quarter valued at approximately $18,702,000. 91.69% of the stock is currently owned by institutional investors and hedge funds.

PENN Entertainment Company Profile

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.