Citigroup Has Lowered Expectations for PENN Entertainment (NASDAQ:PENN) Stock Price

Key Points

• Citigroup lowered its price target for PENN Entertainment from $22 to $17 while maintaining a neutral rating, implying roughly 10.4% upside from the reported $15.40 share price.
• Analyst sentiment remains mixed but leans positive: PENN has a consensus “Moderate Buy” rating and an average target price of $24.06, based on 12 Buy, 7 Hold, and 1 Sell rating.
• PENN reported quarterly EPS of $0.44, beating estimates of $0.37, while revenue rose 5.2% year over year to $1.86 billion. However, the company continued to post a negative net margin, and its shares traded below their 50- and 200-day moving averages.

PENN Entertainment (NASDAQ:PENN - Get Free Report) had its price target dropped by analysts at Citigroup from $22.00 to $17.00 in a research note issued on Monday, Benzinga reports. The brokerage presently has a "neutral" rating on the stock. Citigroup's target price suggests a potential upside of 10.39% from the company's current price.

A number of other analysts have also issued reports on PENN. Mizuho set a $28.00 target price on PENN Entertainment in a research report on Friday, August 7th. Zacks Research lowered PENN Entertainment from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 11th. Truist Financial lifted their price objective on PENN Entertainment from $20.00 to $25.00 and gave the company a "buy" rating in a research note on Friday, June 26th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of PENN Entertainment in a research note on Monday, September 21st. Finally, Deutsche Bank Aktiengesellschaft upgraded PENN Entertainment from a "hold" rating to a "buy" rating and boosted their price objective for the company from $23.00 to $25.00 in a report on Tuesday, October 6th. Twelve research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, PENN Entertainment presently has a consensus rating of "Moderate Buy" and a consensus target price of $24.06.

PENN Entertainment Trading Down 0.5%

Shares of NASDAQ:PENN traded down $0.08 during midday trading on Monday, reaching $15.40. 2,007,966 shares of the company's stock were exchanged, compared to its average volume of 3,742,664. The firm's 50 day simple moving average is $17.28 and its two-hundred day simple moving average is $18.04. The company has a debt-to-equity ratio of 3.79, a current ratio of 0.89 and a quick ratio of 0.89. The stock has a market cap of $2.06 billion, a price-to-earnings ratio of -2.42, a P/E/G ratio of 0.40 and a beta of 1.39. PENN Entertainment has a fifty-two week low of $11.65 and a fifty-two week high of $22.36.

PENN Entertainment (NASDAQ:PENN - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported $0.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.37 by $0.07. PENN Entertainment had a negative net margin of 12.66% and a positive return on equity of 2.93%. The firm had revenue of $1.86 billion for the quarter, compared to analyst estimates of $1.86 billion. During the same period in the previous year, the firm earned ($0.12) EPS. PENN Entertainment's revenue was up 5.2% on a year-over-year basis. As a group, sell-side analysts forecast that PENN Entertainment will post 1.20 EPS for the current fiscal year.

Institutional Investors Weigh In On PENN Entertainment

Several large investors have recently added to or reduced their stakes in PENN. Nykredit A S purchased a new position in PENN Entertainment in the second quarter valued at approximately $25,000. Northwestern Mutual Wealth Management Co. acquired a new position in shares of PENN Entertainment in the 2nd quarter valued at $66,000. Versant Capital Management Inc boosted its holdings in shares of PENN Entertainment by 29.6% in the 3rd quarter. Versant Capital Management Inc now owns 3,513 shares of the company's stock valued at $51,000 after buying an additional 803 shares in the last quarter. GAMMA Investing LLC grew its position in shares of PENN Entertainment by 19.4% in the 2nd quarter. GAMMA Investing LLC now owns 5,506 shares of the company's stock valued at $118,000 after buying an additional 895 shares during the last quarter. Finally, Allworth Financial LP purchased a new position in shares of PENN Entertainment in the 2nd quarter valued at $131,000. 91.69% of the stock is owned by hedge funds and other institutional investors.

About PENN Entertainment

PENN Entertainment, Inc is a North American provider of integrated entertainment, gaming and sports betting. The company operates casinos, racetracks and hotels, offering casino gaming, sports wagering, dining, live entertainment and other hospitality services. Its property portfolio includes regional gaming destinations serving customers across the United States.

PENN also develops and operates digital gaming products, including online sports betting and iCasino services. Its digital operations have included the ESPN BET sportsbook, developed through a strategic relationship with ESPN, as well as theScore Bet, supported by the company's acquisition of Canadian digital media and sports betting business theScore.

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