PENN Entertainment (NASDAQ:PENN) Stock Price Expected to Rise, Mizuho Analyst Says

Key Points

• Mizuho raised its target price for PENN from $19 to $22 and kept an "outperform" rating, implying roughly a 48% upside from the stock's current price.
• PENN beat the quarter (EPS $0.07 vs. -$0.23 estimate; revenue $1.81B vs. $1.76B) but still shows negative net margins and high leverage (debt/equity 3.92), and analysts remain mixed—average rating "Hold" with an average target of $19.67 (8 Buys, 7 Holds, 1 Sell).

PENN Entertainment (NASDAQ:PENN - Get Free Report) had its target price upped by Mizuho from $19.00 to $22.00 in a note issued to investors on Thursday,Benzinga reports. The firm currently has an "outperform" rating on the stock. Mizuho's target price would suggest a potential upside of 47.95% from the company's current price.

Other analysts have also recently issued research reports about the stock. Jefferies Financial Group reaffirmed a "hold" rating and set a $17.00 price objective on shares of PENN Entertainment in a research note on Wednesday, December 24th. Weiss Ratings restated a "sell (d-)" rating on shares of PENN Entertainment in a research report on Monday, December 29th. Morgan Stanley lowered their price objective on PENN Entertainment from $17.00 to $15.00 and set an "equal weight" rating on the stock in a research note on Friday, January 16th. Citigroup raised their target price on PENN Entertainment from $15.00 to $16.00 and gave the stock a "neutral" rating in a research note on Monday, March 2nd. Finally, Benchmark raised shares of PENN Entertainment from a "hold" rating to a "buy" rating and set a $21.00 price target on the stock in a research report on Thursday, March 5th. Eight investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, PENN Entertainment currently has an average rating of "Hold" and an average target price of $19.67.

PENN Entertainment Stock Up 3.8%

Shares of PENN opened at $14.87 on Thursday. The company has a debt-to-equity ratio of 3.92, a quick ratio of 0.79 and a current ratio of 0.79. PENN Entertainment has a one year low of $11.65 and a one year high of $20.60. The stock has a market capitalization of $1.99 billion, a price-to-earnings ratio of -2.47, a PEG ratio of 0.43 and a beta of 1.33. The stock has a 50 day moving average price of $13.80 and a 200 day moving average price of $15.73.

PENN Entertainment (NASDAQ:PENN - Get Free Report) last announced its quarterly earnings data on Thursday, February 26th. The company reported $0.07 earnings per share for the quarter, beating analysts' consensus estimates 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 company had revenue of $1.81 billion for the quarter, compared to analyst estimates of $1.76 billion. During the same quarter last year, the firm posted ($0.44) EPS. The firm's revenue for the quarter was up 8.2% on a year-over-year basis. Equities research analysts forecast that PENN Entertainment will post -1.61 earnings per share for the current fiscal year.

Hedge Funds Weigh In On PENN Entertainment

Hedge funds have recently made changes to their positions in the stock. Shapiro Capital Management LLC lifted its position in shares of PENN Entertainment by 6.6% during the third quarter. Shapiro Capital Management LLC now owns 6,856,778 shares of the company's stock worth $132,062,000 after purchasing an additional 425,190 shares in the last quarter. Hill Path Capital LP grew its stake in shares of PENN Entertainment by 64.4% in the third quarter. Hill Path Capital LP now owns 5,759,820 shares of the company's stock worth $110,934,000 after acquiring an additional 2,257,000 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its stake in shares of PENN Entertainment by 74.7% in the third quarter. Arrowstreet Capital Limited Partnership now owns 3,930,293 shares of the company's stock worth $75,697,000 after acquiring an additional 1,679,953 shares in the last quarter. AQR Capital Management LLC increased its position in shares of PENN Entertainment by 824.3% during the fourth quarter. AQR Capital Management LLC now owns 3,499,700 shares of the company's stock worth $51,341,000 after acquiring an additional 3,121,051 shares during the period. Finally, Armistice Capital LLC raised its stake in shares of PENN Entertainment by 47.2% in the fourth quarter. Armistice Capital LLC now owns 3,096,000 shares of the company's stock valued at $45,666,000 after acquiring an additional 992,334 shares in the last quarter. Hedge funds and other institutional investors own 91.69% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.