Needham & Company LLC Has Lowered Expectations for PENN Entertainment (NASDAQ:PENN) Stock Price

Key Points

• Needham & Company LLC has decreased its price target for PENN Entertainment from $25.00 to $22.00, suggesting a potential upside of 30.02% based on the company's current stock price.
• Various analysts have differing views on PENN, with ratings ranging from a "sell" to a "buy," and a consensus price target of $23.00 according to MarketBeat.com.
• PENN Entertainment's stock opened at $16.92 on Friday, and the company reported quarterly earnings that beat analysts' expectations, with a revenue increase of 6.1% year-over-year.

PENN Entertainment (NASDAQ:PENN - Get Free Report) had its price target lowered by equities researchers at Needham & Company LLC from $25.00 to $22.00 in a research report issued on Friday,Benzinga reports. The firm presently has a "buy" rating on the stock. Needham & Company LLC's target price would suggest a potential upside of 30.02% from the company's current price.

A number of other analysts have also recently commented on the stock. JPMorgan Chase & Co. assumed coverage on shares of PENN Entertainment in a research note on Monday, June 23rd. They set an "overweight" rating and a $24.00 target price for the company. JMP Securities raised PENN Entertainment from a "market perform" rating to a "market outperform" rating and set a $24.00 target price for the company in a report on Thursday, June 26th. Truist Financial lowered their price target on PENN Entertainment from $23.00 to $20.00 and set a "hold" rating on the stock in a research note on Wednesday, April 23rd. Barclays dropped their price target on PENN Entertainment from $23.00 to $22.00 and set an "overweight" rating for the company in a research report on Friday, July 18th. Finally, Mizuho decreased their price objective on PENN Entertainment from $25.00 to $24.00 and set an "outperform" rating on the stock in a report on Monday, May 12th. One research analyst has rated the stock with a sell rating, eight have issued a hold rating and eleven have given a buy rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $23.00.

PENN Entertainment Price Performance

Shares of NASDAQ PENN opened at $16.92 on Friday. The company has a debt-to-equity ratio of 2.35, a current ratio of 0.74 and a quick ratio of 0.74. The firm's 50 day simple moving average is $17.46 and its 200-day simple moving average is $17.50. PENN Entertainment has a 12 month low of $13.25 and a 12 month high of $23.08. The stock has a market capitalization of $2.55 billion, a price-to-earnings ratio of -27.29 and a beta of 1.60.

PENN Entertainment (NASDAQ:PENN - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The company reported $0.10 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.04) by $0.14. The firm had revenue of $1.77 billion for the quarter, compared to analysts' expectations of $1.73 billion. PENN Entertainment had a negative net margin of 1.28% and a negative return on equity of 5.75%. The firm's revenue for the quarter was up 6.1% compared to the same quarter last year. During the same quarter last year, the company earned ($0.18) EPS. Analysts expect that PENN Entertainment will post -1.61 EPS for the current year.

Insider Transactions at PENN Entertainment

In related news, CEO Jay A. Snowden bought 34,000 shares of the firm's stock in a transaction on Thursday, May 22nd. The shares were bought at an average price of $14.70 per share, with a total value of $499,800.00. Following the completion of the transaction, the chief executive officer directly owned 1,082,625 shares of the company's stock, valued at $15,914,587.50. This represents a 3.24% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director David A. Handler purchased 10,000 shares of the company's stock in a transaction on Thursday, May 22nd. The shares were bought at an average price of $14.83 per share, with a total value of $148,300.00. Following the completion of the transaction, the director owned 322,941 shares of the company's stock, valued at approximately $4,789,215.03. The trade was a 3.20% increase in their ownership of the stock. The disclosure for this purchase can be found here. 2.67% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in PENN. GAMMA Investing LLC grew its holdings in shares of PENN Entertainment by 38.7% in the first quarter. GAMMA Investing LLC now owns 2,636 shares of the company's stock valued at $43,000 after purchasing an additional 736 shares in the last quarter. Parallel Advisors LLC grew its position in shares of PENN Entertainment by 152.2% in the 2nd quarter. Parallel Advisors LLC now owns 1,397 shares of the company's stock valued at $25,000 after buying an additional 843 shares during the last quarter. Keybank National Association OH increased its position in shares of PENN Entertainment by 6.3% during the second quarter. Keybank National Association OH now owns 14,655 shares of the company's stock worth $262,000 after purchasing an additional 870 shares in the last quarter. J.Safra Asset Management Corp increased its position in PENN Entertainment by 6.7% during the first quarter. J.Safra Asset Management Corp now owns 13,877 shares of the company's stock worth $226,000 after buying an additional 877 shares during the period. Finally, Teacher Retirement System of Texas raised its position in PENN Entertainment by 4.5% in the 2nd quarter. Teacher Retirement System of Texas now owns 22,011 shares of the company's stock valued at $393,000 after purchasing an additional 949 shares during the last quarter. 91.69% of the stock is currently owned by institutional investors and hedge funds.

About PENN Entertainment

PENN Entertainment, Inc, together with its subsidiaries, provides integrated entertainment, sports content, and casino gaming experiences. The company operates through five segments: Northeast, South, West, Midwest, and Interactive. It operates online sports betting in various jurisdictions; and iCasino under Hollywood Casino, L'Auberge, ESPN BET, and theScore Bet Sportsbook and Casino brands.

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