PENN Entertainment (NASDAQ:PENN) Rating Increased to Equal Weight at Wells Fargo & Company

Wells Fargo & Company upgraded shares of PENN Entertainment (NASDAQ:PENN) from a strong sell rating to an equal weight rating in a research note issued to investors on Friday morning, MarketBeat Ratings reports. Wells Fargo & Company currently has $16.00 target price on the stock, up from their previous target price of $15.00.

PENN has been the topic of several other research reports. Morgan Stanley cut their price objective 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. Mizuho set a $19.00 price target on shares of PENN Entertainment in a report on Monday, February 2nd. Canaccord Genuity Group decreased their price objective on shares of PENN Entertainment from $26.00 to $21.00 and set a “buy” rating for the company in a report on Tuesday, February 3rd. Deutsche Bank Aktiengesellschaft lowered their price objective on shares of PENN Entertainment from $19.00 to $17.00 and set a “hold” rating for the company in a research report on Friday, November 7th. Finally, 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. Eight investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, PENN Entertainment has an average rating of “Hold” and an average price target of $19.29.

PENN Entertainment Trading Up 6.8%

NASDAQ:PENN traded up $1.00 during mid-day trading on Friday, hitting $15.64. 12,747,263 shares of the stock traded hands, compared to its average volume of 4,663,695. 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 stock has a market capitalization of $2.08 billion, a price-to-earnings ratio of -2.60, a PEG ratio of 0.45 and a beta of 1.39. PENN Entertainment has a 52 week low of $11.65 and a 52 week high of $22.13. The firm’s 50 day moving average is $13.78 and its two-hundred day moving average is $15.94.

PENN Entertainment (NASDAQ:PENN) last announced its earnings results on Thursday, February 26th. The company reported $0.07 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.23) by $0.30. PENN Entertainment had a negative return on equity of 1.79% and a negative net margin of 12.11%.The business had revenue of $1.81 billion during the quarter, compared to analyst estimates of $1.76 billion. During the same quarter in the previous year, the business earned ($0.44) earnings per share. The company’s revenue for the quarter was up 8.2% compared to the same quarter last year. On average, equities research analysts predict that PENN Entertainment will post -1.61 earnings per share for the current year.

Hedge Funds Weigh In On PENN Entertainment

Large investors have recently bought and sold shares of the business. Hill Path Capital LP bought a new stake in PENN Entertainment during the 2nd quarter valued at $62,595,000. AQR Capital Management LLC raised its position in shares of PENN Entertainment by 824.3% in the 4th quarter. AQR Capital Management LLC now owns 3,499,700 shares of the company’s stock worth $51,341,000 after acquiring an additional 3,121,051 shares in the last quarter. Arrowstreet Capital Limited Partnership purchased a new stake in shares of PENN Entertainment during the 2nd quarter worth $40,214,000. Norges Bank bought a new stake in PENN Entertainment during the second quarter valued at about $39,737,000. Finally, Hennessy Advisors Inc. bought a new stake in PENN Entertainment during the third quarter valued at about $40,537,000. Institutional investors own 91.69% of the company’s stock.

PENN Entertainment News Summary

Here are the key news stories impacting PENN Entertainment this week:

• Positive Sentiment: Q4 results beat consensus — PENN reported adjusted EPS of $0.07 (vs. a -$0.23 estimate) and revenue of $1.81B, with management citing positive momentum in interactive products and improved retail trends. PENN Entertainment (NASDAQ:PENN) Surprises With Q4 CY2025 Sales, Stock Soars
• Positive Sentiment: Management set explicit 2026 targets — the company is aiming for ~20% interactive-segment EBITDAR growth and ~$3 per share free cash flow while advancing restructuring and cost cuts, which could materially improve margins if achieved. Penn targets 20% interactive segment EBITDAR growth and $3 per share free cash flow in 2026
• Positive Sentiment: Analyst support increased — Deutsche Bank bumped its price target to $17 (maintaining a hold), signaling incremental upgrade in outlook from the Street. Deutsche Bank adjusts PENN price target to $17
• Positive Sentiment: Wells Fargo upgraded PENN from underweight to equal weight and raised its target to $16 — another signal of improving sentiment among institutional analysts. Wells Fargo upgrades PENN, raises price target
• Positive Sentiment: Market reaction to guidance and interactive progress was strong — the stock recently rallied after management outlined a double-digit growth outlook for the year. PENN Climbs on Double-Digit Growth Outlook
• Neutral Sentiment: Full earnings-call detail and transcripts are available for deeper read (useful for assessing cadence on costs, hold rates and interactive trends). Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Coverage noting PENN is “reshaping strategy after costly partnerships” and narrowing Q4 losses — indicates management is pivoting but also acknowledges past execution/partnership costs. Penn Entertainment narrows Q4 losses as bets reshape strategy
• Negative Sentiment: Legal/regulatory risk — management has flagged prediction-market litigation and is pushing for a higher-court resolution; an adverse outcome could hinder interactive growth. CEO Hopes Prediction Market Lawsuits Get to Supreme Court
• Negative Sentiment: Structural headwinds remain — PENN still reports negative net margin and negative ROE and carries elevated leverage, which could cap upside until profitability and balance-sheet metrics materially improve.

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.