Hill Path Capital LP Has $110.93 Million Stake in PENN Entertainment, Inc. $PENN

Key Points

• Hill Path Capital LP increased its stake in PENN Entertainment by 64.4% in Q3, buying 2,257,000 shares to hold 5,759,820 shares (about $110.93 million), representing roughly 4.32% of the company and making PENN its 4th largest holding.
• PENN beat quarterly EPS and revenue estimates — $0.07 EPS vs. a ($0.23) estimate and $1.81B revenue (+8.2% YoY) — but still shows a negative net margin (-12.11%), negative ROE, and high leverage (debt-to-equity ~3.92).
• Analysts are mixed: the consensus rating is "Hold" with an average target of $19.67 (8 Buys, 7 Holds, 1 Sell), reflecting divergent views on PENN's outlook.

Hill Path Capital LP lifted its holdings in PENN Entertainment, Inc. (NASDAQ:PENN - Free Report) by 64.4% during the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 5,759,820 shares of the company's stock after buying an additional 2,257,000 shares during the period. PENN Entertainment comprises 5.4% of Hill Path Capital LP's holdings, making the stock its 4th largest holding. Hill Path Capital LP owned approximately 4.32% of PENN Entertainment worth $110,934,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in PENN. Earnest Partners LLC boosted its holdings in shares of PENN Entertainment by 0.6% in the 3rd quarter. Earnest Partners LLC now owns 2,961,273 shares of the company's stock worth $57,034,000 after purchasing an additional 18,099 shares during the period. Capula Management Ltd bought a new position in PENN Entertainment during the third quarter valued at $318,000. Cinctive Capital Management LP purchased a new stake in shares of PENN Entertainment in the third quarter valued at $812,000. California Public Employees Retirement System lifted its holdings in shares of PENN Entertainment by 6.9% in the 3rd quarter. California Public Employees Retirement System now owns 261,026 shares of the company's stock worth $5,027,000 after acquiring an additional 16,897 shares during the last quarter. Finally, Aquatic Capital Management LLC purchased a new position in shares of PENN Entertainment during the 3rd quarter worth about $414,000. Hedge funds and other institutional investors own 91.69% of the company's stock.

PENN Entertainment Stock Down 1.5%

PENN Entertainment stock opened at $14.31 on Monday. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 3.92. The firm has a market cap of $1.91 billion, a P/E ratio of -2.38, a P/E/G ratio of 0.43 and a beta of 1.33. The business has a fifty day moving average of $13.78 and a two-hundred day moving average of $15.62. PENN Entertainment, Inc. has a twelve month low of $11.65 and a twelve month high of $20.60.

PENN Entertainment (NASDAQ:PENN - Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The company reported $0.07 EPS for the quarter, topping the consensus estimate of ($0.23) by $0.30. PENN Entertainment had a negative return on equity of 1.94% and a negative net margin of 12.11%.The firm had revenue of $1.81 billion during the quarter, compared to analyst estimates of $1.76 billion. During the same period in the previous year, the company posted ($0.44) EPS. The business's revenue for the quarter was up 8.2% compared to the same quarter last year. On average, analysts forecast that PENN Entertainment, Inc. will post -1.61 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on PENN shares. Canaccord Genuity Group reduced their price objective on shares of PENN Entertainment from $26.00 to $21.00 and set a "buy" rating on the stock in a research report on Tuesday, February 3rd. Mizuho raised their price target on PENN Entertainment from $19.00 to $22.00 and gave the stock an "outperform" rating in a research note on Thursday. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of PENN Entertainment in a research report on Monday, December 29th. Jefferies Financial Group reiterated a "hold" rating and set a $17.00 target price on shares of PENN Entertainment in a research report on Wednesday, December 24th. Finally, Benchmark raised shares of PENN Entertainment from a "hold" rating to a "buy" rating and set a $21.00 price objective for the company in a research report on Thursday, March 5th. Eight research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, PENN Entertainment has a consensus rating of "Hold" and an average target price of $19.67.

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.

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