PENN Entertainment (NASDAQ:PENN) Stock Price Target Cut by Morgan Stanley

Key Points

• Morgan Stanley cut PENN Entertainment’s price target from $20 to $18 while maintaining an “equal weight” rating, implying roughly 23% upside from the stock’s $14.63 price.
• Analyst sentiment remains broadly positive: PENN has a “Moderate Buy” consensus rating and an average price target of $23.72, despite one sell rating.
• PENN’s latest quarterly results exceeded expectations, with adjusted earnings of $0.44 per share versus $0.37 expected and revenue of $1.86 billion; institutional investors own 91.69% of the stock.

PENN Entertainment (NASDAQ:PENN - Get Free Report) had its target price reduced by investment analysts at Morgan Stanley from $20.00 to $18.00 in a report issued on Monday, Benzinga reports. The firm currently has an "equal weight" rating on the stock. Morgan Stanley's target price suggests a potential upside of 23.07% from the stock's current price.

Other equities research analysts have also issued reports about the company. Piper Sandler upgraded PENN Entertainment from a "neutral" rating to a "buy" rating and set a $26.00 target price for the company in a report on Tuesday, October 13th. Capital One Financial upgraded PENN Entertainment from an "equal weight" rating to an "overweight" rating and set a $26.00 price target on the stock in a report on Thursday, July 23rd. Deutsche Bank Aktiengesellschaft raised shares of PENN Entertainment from a "hold" rating to a "buy" rating and upped their price objective for the stock from $23.00 to $25.00 in a report on Tuesday, October 6th. Truist Financial upped their price objective on shares of PENN Entertainment from $20.00 to $25.00 and gave the stock a "buy" rating in a report on Friday, June 26th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of PENN Entertainment in a research note on Monday, September 21st. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, PENN Entertainment has an average rating of "Moderate Buy" and a consensus price target of $23.72.

PENN Entertainment Stock Down 2.1%

NASDAQ:PENN traded down $0.31 during trading hours on Monday, reaching $14.63. The company's stock had a trading volume of 862,775 shares, compared to its average volume of 3,713,870. The company has a market cap of $1.96 billion, a price-to-earnings ratio of -2.30, a price-to-earnings-growth ratio of 0.38 and a beta of 1.39. PENN Entertainment has a one year low of $11.65 and a one year high of $22.36. The business's 50-day moving average is $16.79 and its 200-day moving average is $18.06. The company has a debt-to-equity ratio of 3.79, a current ratio of 0.89 and a quick ratio of 0.89.

PENN Entertainment (NASDAQ:PENN - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.44 earnings per share for the quarter, topping analysts' consensus estimates of $0.37 by $0.07. The company had revenue of $1.86 billion during the quarter, compared to analysts' expectations of $1.86 billion. PENN Entertainment had a positive return on equity of 2.93% and a negative net margin of 12.66%. The business's quarterly revenue was up 5.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.12) earnings per share. Equities research analysts predict that PENN Entertainment will post 1.20 EPS for the current year.

Institutional Trading of PENN Entertainment

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new stake in PENN Entertainment during the second quarter worth about $410,579,000. Bank of America Corp DE acquired a new position in PENN Entertainment in the 2nd quarter valued at approximately $108,919,000. Bamco Inc. NY bought a new stake in shares of PENN Entertainment in the 2nd quarter worth approximately $58,624,000. Freestone Grove Partners LP bought a new stake in shares of PENN Entertainment in the 2nd quarter worth approximately $21,532,000. Finally, Connor Clark & Lunn Investment Management Ltd. acquired a new stake in shares of PENN Entertainment during the 2nd quarter worth approximately $21,460,000. Institutional investors and hedge funds own 91.69% of the company's stock.

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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