PENN Entertainment (NASDAQ:PENN) Shares Down 4.8% - Time to Sell?

Key Points

• PENN Entertainment shares dropped by 4.8% on Wednesday, closing at $17.07, with trading volume down 38% from the average.
• Despite the recent stock decline, several analysts maintain a positive outlook, with a consensus rating of "Hold" and an average target price of $22.80.
• Insider activity shows confidence in the company, as Director David A. Handler purchased 20,000 shares at an average price of $16.96, increasing his ownership by 6.19%.

PENN Entertainment, Inc. (NASDAQ:PENN - Get Free Report)'s stock price fell 4.8% on Wednesday . The company traded as low as $17.06 and last traded at $17.07. 2,549,416 shares traded hands during trading, a decline of 38% from the average session volume of 4,119,846 shares. The stock had previously closed at $17.93.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on PENN. Morgan Stanley reiterated a "sell" rating on shares of PENN Entertainment in a report on Friday, July 11th. Barclays reduced their target price on shares of PENN Entertainment from $23.00 to $22.00 and set an "overweight" rating on the stock in a report on Friday, July 18th. Susquehanna reiterated a "positive" rating and set a $25.00 target price (up from $24.00) on shares of PENN Entertainment in a report on Tuesday, June 10th. JMP Securities increased their target price on shares of PENN Entertainment from $24.00 to $25.00 and gave the stock a "market outperform" rating in a report on Friday, August 8th. Finally, Needham & Company LLC reduced their target price on shares of PENN Entertainment from $25.00 to $22.00 and set a "buy" rating on the stock in a report on Friday, August 8th. Ten investment analysts have rated the stock with a Buy rating, six have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $22.80.

PENN Entertainment Price Performance

The company's 50 day moving average is $18.96 and its 200 day moving average is $17.25. The company has a current ratio of 0.79, a quick ratio of 0.79 and a debt-to-equity ratio of 2.39. The stock has a market capitalization of $2.47 billion, a price-to-earnings ratio of -30.18 and a beta of 1.60.

PENN Entertainment (NASDAQ:PENN - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The company reported $0.10 EPS for the quarter, topping the consensus estimate of ($0.04) by $0.14. PENN Entertainment had a negative net margin of 1.12% and a negative return on equity of 4.36%. The firm had revenue of $1.77 billion for the quarter, compared to analyst estimates of $1.73 billion. During the same period last year, the business earned ($0.18) EPS. PENN Entertainment's revenue for the quarter was up 6.1% compared to the same quarter last year. Research analysts anticipate that PENN Entertainment, Inc. will post -1.61 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director David A. Handler purchased 20,000 shares of the business's stock in a transaction that occurred on Friday, August 8th. The shares were purchased at an average cost of $16.96 per share, for a total transaction of $339,200.00. Following the purchase, the director directly owned 342,941 shares of the company's stock, valued at $5,816,279.36. The trade was a 6.19% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 2.67% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Parallel Advisors LLC grew its position in PENN Entertainment by 152.2% during the 2nd quarter. Parallel Advisors LLC now owns 1,397 shares of the company's stock worth $25,000 after purchasing an additional 843 shares during the last quarter. Quarry LP purchased a new stake in shares of PENN Entertainment in the first quarter valued at about $30,000. GAMMA Investing LLC boosted 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 acquiring an additional 736 shares in the last quarter. Byrne Asset Management LLC boosted its holdings in shares of PENN Entertainment by 201.1% in the first quarter. Byrne Asset Management LLC now owns 2,710 shares of the company's stock valued at $44,000 after acquiring an additional 1,810 shares in the last quarter. Finally, State of Wyoming purchased a new stake in shares of PENN Entertainment in the first quarter valued at about $46,000. 91.69% of the stock is owned by hedge funds and other institutional investors.

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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