PENN Entertainment (NASDAQ:PENN) Shares Gap Up on Strong Earnings

Shares of PENN Entertainment, Inc. (NASDAQ:PENN) gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $12.54, but opened at $13.51. PENN Entertainment shares last traded at $13.9330, with a volume of 1,669,298 shares changing hands.

The company reported $0.07 earnings per share for the quarter, topping the consensus estimate of ($0.23) by $0.30. The company had revenue of $1.81 billion for the quarter, compared to analysts’ expectations of $1.76 billion. PENN Entertainment had a negative net margin of 13.24% and a negative return on equity of 4.59%. PENN Entertainment’s revenue for the quarter was up 8.2% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.44) earnings per share.

Analyst Upgrades and Downgrades

PENN has been the subject of a number of analyst reports. Susquehanna lowered their price objective on PENN Entertainment from $20.00 to $17.00 and set a “positive” rating for the company in a research report on Wednesday, February 11th. Morgan Stanley lowered their price target on shares of PENN Entertainment from $17.00 to $15.00 and set an “equal weight” rating for the company in a report on Friday, January 16th. Wells Fargo & Company initiated coverage on shares of PENN Entertainment in a research report on Tuesday, November 18th. They issued an “underweight” rating and a $15.00 price target on the stock. Stifel Nicolaus upgraded shares of PENN Entertainment from a “hold” rating to a “buy” rating and increased their price objective for the stock from $19.00 to $21.00 in a research report on Friday, November 7th. Finally, Canaccord Genuity Group lowered their target price on shares of PENN Entertainment from $26.00 to $21.00 and set a “buy” rating for the company in a research note on Tuesday, February 3rd. Nine analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $19.67.

Institutional Investors Weigh In On PENN Entertainment

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Caxton Associates LLP bought a new position in shares of PENN Entertainment during the 1st quarter worth about $246,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in PENN Entertainment by 30.2% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 344,565 shares of the company’s stock worth $5,620,000 after acquiring an additional 79,978 shares in the last quarter. State of New Jersey Common Pension Fund D boosted its holdings in PENN Entertainment by 39.9% in the second quarter. State of New Jersey Common Pension Fund D now owns 128,475 shares of the company’s stock worth $2,296,000 after acquiring an additional 36,661 shares in the last quarter. Nisa Investment Advisors LLC grew its stake in PENN Entertainment by 13.8% in the second quarter. Nisa Investment Advisors LLC now owns 19,800 shares of the company’s stock valued at $354,000 after acquiring an additional 2,401 shares during the period. Finally, Envestnet Asset Management Inc. increased its holdings in shares of PENN Entertainment by 1.6% during the second quarter. Envestnet Asset Management Inc. now owns 346,847 shares of the company’s stock valued at $6,198,000 after acquiring an additional 5,486 shares in the last quarter. 91.69% of the stock is owned by institutional investors.

PENN Entertainment Price Performance

The business has a 50-day moving average price of $13.76 and a two-hundred day moving average price of $15.96. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 3.65. The company has a market capitalization of $1.87 billion, a price-to-earnings ratio of -2.20, a price-to-earnings-growth ratio of 0.39 and a beta of 1.39.

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.