Vanguard Group Inc. has reduced its stake in PENN Entertainment, Inc. (NASDAQ:PENN) by 0.7% during the first quarter of 2023, according to the firm’s latest 13F filing with the Securities and Exchange Commission (SEC). The asset management company sold 108,136 shares, bringing its total ownership to 16,249,162 shares, which accounts for approximately 10.77% of the company’s equity, valued at around $265 million.
In addition to Vanguard’s adjustments, several other institutional investors have also modified their holdings in PENN Entertainment. For instance, GAMMA Investing LLC increased its position by 38.7%, acquiring an additional 736 shares to reach a total of 2,636 shares valued at about $43,000. Similarly, Byrne Asset Management LLC raised its stake by 201.1%, now owning 2,710 shares worth approximately $44,000. Other notable changes include Signaturefd LLC, which upped its holdings by 1,371.6%, and KBC Group NV, which increased its stake by 42.2%. Collectively, institutional investors now hold 91.69% of PENN Entertainment’s stock.
PENN Entertainment Performance Overview
Shares of PENN Entertainment opened at $18.67 on a recent trading day. The company’s 50-day simple moving average stands at $17.77, while the 200-day average is at $17.33. With a market capitalization of $2.73 billion, PENN boasts a P/E ratio of -33.34 and a beta of 1.60. Financial metrics indicate a debt-to-equity ratio of 2.39 and both a current and quick ratio of 0.79. The stock has experienced a 1-year low of $13.25 and a high of $23.08.
The company’s most recent earnings report, released on August 7, 2023, showed a profit of $0.10 per share, surpassing analysts’ expectations of a loss of $0.04 by $0.14. Revenue for the quarter totaled $1.77 billion, exceeding estimates of $1.73 billion. Despite a negative net margin of 1.12%, PENN Entertainment’s revenue increased by 6.1% year-over-year. Analysts project that the company will report an earnings per share of –$1.61 for the current fiscal year.
Insider Activity and Analyst Ratings
Recent insider transactions indicate a degree of confidence among company executives. CEO Jay A. Snowden purchased 34,000 shares on May 22, 2023, at an average price of $14.70 per share, totaling nearly $500,000. Following this acquisition, Snowden now owns 1,082,625 shares valued at approximately $15.9 million. Additionally, Director David A. Handler acquired 20,000 shares on August 8, 2023, at an average price of $16.96, worth around $339,200. This brings Handler’s total holdings to 342,941 shares, valued at approximately $5.82 million.
Overall, company insiders have purchased 64,000 shares valued at nearly $1 million within the last three months, representing 2.67% of the company’s total stock.
Analysts’ opinions on PENN Entertainment vary. Citizens JMP upgraded the stock from a “market perform” to an “outperform” rating with a price target of $24.00. Meanwhile, Benchmark maintained a “hold” rating, and Stifel Nicolaus adjusted its price target from $17.00 to $19.00. Barclays lowered its target from $23.00 to $22.00, maintaining an “overweight” rating. Analysts’ consensus indicates a mixed outlook, with two recommending a “sell,” six a “hold,” and eleven a “buy” rating, resulting in an average rating of “Hold” with a consensus target price of $23.25.
PENN Entertainment, Inc. operates various gaming and entertainment segments and continues to adapt to market changes while navigating the competitive landscape of the casino industry.
