PENN Entertainment (NASDAQ:PENN) Stock Falls 7% - Here's What Happened

Key Points

• PENN Entertainment shares fell 7% to about $14.38 in Friday trading, with volume below the stock’s average session volume.
• Despite the decline, analysts remain broadly positive: PENN has a consensus “Moderate Buy” rating and an average price target of $23.61, with several firms maintaining or raising targets to $26 or higher.
• The company’s latest quarter exceeded expectations, reporting adjusted EPS of $0.44 versus the $0.37 consensus and year-over-year revenue growth of 5.2%; institutional investors own 91.69% of its shares.

PENN Entertainment, Inc. (NASDAQ:PENN - Get Free Report)'s share price dropped 7% during trading on Friday. The company traded as low as $14.45 and last traded at $14.3750. 2,590,390 shares were traded during mid-day trading, a decline of 30% from the average session volume of 3,698,020 shares. The stock had previously closed at $15.46.

Analyst Ratings Changes

A number of analysts recently weighed in on the stock. Benchmark increased their price target on shares of PENN Entertainment from $21.00 to $22.00 and gave the stock a "buy" rating in a research note on Friday, August 7th. Susquehanna dropped their price objective on shares of PENN Entertainment from $30.00 to $26.00 and set a "positive" rating on the stock in a research note on Monday. Capital One Financial upgraded shares of PENN Entertainment from an "equal weight" rating to an "overweight" rating and set a $26.00 price objective on the stock in a research note on Thursday, July 23rd. Citigroup reaffirmed a "market outperform" rating on shares of PENN Entertainment in a report on Tuesday, October 13th. Finally, Citizens Jmp increased their price objective on PENN Entertainment from $24.00 to $26.00 and gave the stock a "market outperform" rating in a research report on Thursday, July 16th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, PENN Entertainment currently has a consensus rating of "Moderate Buy" and a consensus price target of $23.61.

PENN Entertainment Trading Down 6.8%

The firm has a market cap of $1.93 billion, a PE ratio of -2.26, a P/E/G ratio of 0.38 and a beta of 1.39. The company's fifty day moving average price is $16.47 and its two-hundred day moving average price is $18.07. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 3.79.

PENN Entertainment (NASDAQ:PENN - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.37 by $0.07. The firm had revenue of $1.86 billion during the quarter, compared to analysts' expectations of $1.86 billion. PENN Entertainment had a negative net margin of 12.66% and a positive return on equity of 2.93%. The firm's revenue for the quarter was up 5.2% on a year-over-year basis. During the same period in the prior year, the company posted ($0.12) earnings per share. As a group, sell-side analysts forecast that PENN Entertainment, Inc. will post 1.20 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Nykredit A S acquired a new stake in PENN Entertainment in the second quarter valued at $25,000. Versant Capital Management Inc boosted its position in shares of PENN Entertainment by 29.6% during the 3rd quarter. Versant Capital Management Inc now owns 3,513 shares of the company's stock worth $51,000 after purchasing an additional 803 shares in the last quarter. IFP Advisors Inc grew its stake in shares of PENN Entertainment by 103.1% during the 3rd quarter. IFP Advisors Inc now owns 3,920 shares of the company's stock worth $57,000 after purchasing an additional 1,990 shares during the period. Northwestern Mutual Wealth Management Co. purchased a new position in shares of PENN Entertainment in the 2nd quarter valued at about $66,000. Finally, GAMMA Investing LLC increased its holdings in PENN Entertainment by 19.4% in the second quarter. GAMMA Investing LLC now owns 5,506 shares of the company's stock valued at $118,000 after buying an additional 895 shares in the last quarter. 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 video gaming terminals, offering slot machines, table games, poker, sports wagering, hotel accommodations, restaurants, entertainment venues and other amenities.

PENN's portfolio includes regional gaming properties operating under brands such as Hollywood Casino, Ameristar, L'Auberge and M Resort. Its land-based operations serve customers across numerous U.S.

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