PENN Entertainment (NASDAQ:PENN) Shares Gap Up - Here's Why

Key Points

• PENN Entertainment shares opened higher, rising from a prior close of $15.10 to $15.86 before trading near $15.85.
• Analysts have raised their price targets, with targets ranging from $26 to $28; the stock carries a consensus “Moderate Buy” rating and an average target of $23.94.
• PENN exceeded quarterly earnings expectations, reporting adjusted EPS of $0.44 versus $0.37 expected, while revenue increased 5.2% year over year to $1.86 billion. Institutional investors own 91.69% of the company.

Shares of PENN Entertainment, Inc. (NASDAQ:PENN - Get Free Report) gapped up prior to trading on Tuesday. The stock had previously closed at $15.10, but opened at $15.86. PENN Entertainment shares last traded at $15.8510, with a volume of 537,164 shares trading hands.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on PENN. Susquehanna boosted their target price on PENN Entertainment from $24.00 to $28.00 and gave the stock a "positive" rating in a report on Wednesday, July 1st. JPMorgan Chase & Co. lifted their price objective on PENN Entertainment from $23.00 to $26.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 15th. Citizens Jmp boosted their price objective on PENN Entertainment from $24.00 to $26.00 and gave the stock a "market outperform" rating in a research note on Thursday, July 16th. Citigroup restated a "market outperform" rating on shares of PENN Entertainment in a report on Tuesday, August 18th. Finally, Mizuho set a $28.00 target price on PENN Entertainment in a research note on Friday, August 7th. Thirteen research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $23.94.

PENN Entertainment Price Performance

The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 3.79. The company has a market cap of $2.13 billion, a price-to-earnings ratio of -2.49, a PEG ratio of 0.38 and a beta of 1.39. The stock's 50-day simple moving average is $17.69 and its 200 day simple moving average is $17.99.

PENN Entertainment (NASDAQ:PENN - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.44 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.37 by $0.07. PENN Entertainment had a negative net margin of 12.66% and a positive return on equity of 2.93%. The business had revenue of $1.86 billion for the quarter, compared to the consensus estimate of $1.86 billion. During the same period in the previous year, the firm earned ($0.12) EPS. The business's revenue was up 5.2% on a year-over-year basis. On average, equities research analysts anticipate that PENN Entertainment, Inc. will post 1.19 EPS for the current fiscal year.

Hedge Funds Weigh In On PENN Entertainment

Several hedge funds have recently bought and sold shares of PENN. BlackRock Inc. acquired a new position in shares of PENN Entertainment in the second quarter valued at approximately $410,579,000. Bank of America Corp DE purchased a new position in PENN Entertainment in the second quarter valued at $108,919,000. Bamco Inc. NY purchased a new position in PENN Entertainment in the second quarter valued at $58,624,000. Armistice Capital LLC grew its stake in PENN Entertainment by 47.2% during the 4th quarter. Armistice Capital LLC now owns 3,096,000 shares of the company's stock worth $45,666,000 after purchasing an additional 992,334 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its holdings in PENN Entertainment by 9.2% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,323,554 shares of the company's stock worth $34,923,000 after purchasing an additional 196,480 shares during the period. Institutional investors and hedge funds own 91.69% of the company's stock.

PENN Entertainment Company Profile

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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