PENN Entertainment (NASDAQ:PENN) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen has downgraded PENN Entertainment from a "hold" rating to a "sell" rating, indicating a bearish outlook for the stock.
• Other analysts have mixed opinions, with efforts to lower target prices; Needham & Company has a "buy" rating with a target price of $22, while Truist Financial and Canaccord Genuity have lowered their prices to $20 and $26, respectively.
• PENN Entertainment reported a quarterly earnings result of $0.10 EPS, exceeding estimates, and had a revenue of $1.77 billion for the quarter, marking a 6.1% year-over-year increase.

PENN Entertainment (NASDAQ:PENN - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Saturday.

A number of other analysts have also weighed in on the company. JPMorgan Chase & Co. began coverage on PENN Entertainment in a report on Monday, June 23rd. They set an "overweight" rating and a $24.00 target price for the company. Needham & Company LLC cut their price target 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. Morgan Stanley reaffirmed a "sell" rating on shares of PENN Entertainment in a report on Friday, July 11th. Citizens Jmp raised shares of PENN Entertainment from a "market perform" rating to an "outperform" rating and set a $24.00 price objective on the stock in a report on Thursday, June 26th. Finally, Stifel Nicolaus upped their price objective on shares of PENN Entertainment from $17.00 to $19.00 and gave the company a "hold" rating in a report on Friday, July 11th. Two equities research analysts have rated the stock with a sell rating, six have assigned a hold rating and eleven have assigned a buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $23.25.

PENN Entertainment Trading Up 3.6%

Shares of PENN stock traded up $0.62 on Friday, reaching $17.71. 1,463,662 shares of the company's stock were exchanged, compared to its average volume of 4,320,284. PENN Entertainment has a 52 week low of $13.25 and a 52 week high of $23.08. 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 $2.59 billion, a PE ratio of -31.62 and a beta of 1.60. The company's fifty day simple moving average is $17.58 and its 200 day simple moving average is $17.42.

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

Insider Buying and Selling

In other news, Director David A. Handler acquired 20,000 shares of the company's stock in a transaction on Friday, August 8th. The shares were bought at an average cost of $16.96 per share, with a total value of $339,200.00. Following the transaction, the director owned 342,941 shares in the company, valued at approximately $5,816,279.36. This trade represents a 6.19% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Jay A. Snowden bought 34,000 shares of the stock in a transaction dated Thursday, May 22nd. The stock was bought at an average price of $14.70 per share, with a total value of $499,800.00. Following the acquisition, the chief executive officer owned 1,082,625 shares in the company, valued at approximately $15,914,587.50. This represents a 3.24% increase in their position. The disclosure for this purchase can be found here. Over the last three months, insiders acquired 64,000 shares of company stock worth $987,300. Insiders own 2.67% of the company's stock.

Institutional Investors Weigh In On PENN Entertainment

Large investors have recently modified their holdings of the stock. Parallel Advisors LLC boosted its stake in shares of PENN Entertainment by 152.2% in the second quarter. Parallel Advisors LLC now owns 1,397 shares of the company's stock valued at $25,000 after buying an additional 843 shares in the last quarter. Quarry LP purchased a new stake in PENN Entertainment in the 1st quarter worth approximately $30,000. GAMMA Investing LLC grew its stake in PENN Entertainment by 38.7% in the 1st quarter. GAMMA Investing LLC now owns 2,636 shares of the company's stock worth $43,000 after acquiring an additional 736 shares during the period. Byrne Asset Management LLC grew its stake in PENN Entertainment by 201.1% in the 1st quarter. Byrne Asset Management LLC now owns 2,710 shares of the company's stock worth $44,000 after acquiring an additional 1,810 shares during the period. Finally, State of Wyoming purchased a new position in PENN Entertainment during the first quarter worth approximately $46,000. Hedge funds and other institutional investors own 91.69% of the company's stock.

PENN Entertainment Company Profile

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.