Wells Fargo & Company Cuts PENN Entertainment (NASDAQ:PENN) Price Target to $23.00

Key Points

• Wells Fargo cut its price target on PENN Entertainment from $24 to $23 while keeping an equal weight rating, implying about 12.3% upside from the current price.
• Other analysts remain mixed on the stock: Goldman Sachs started coverage with a buy rating, Susquehanna raised its target to $28, while Weiss Ratings kept a sell rating. Overall, the stock has a Moderate Buy consensus and an average target of $22.19.
• PENN Entertainment recently reported better-than-expected quarterly results, with EPS of $0.11 versus $0.05 expected and revenue of $1.78 billion beating estimates. The company also saw 6.4% year-over-year revenue growth, though profitability remains weak with a negative net margin.

PENN Entertainment (NASDAQ:PENN - Get Free Report) had its price target lowered by stock analysts at Wells Fargo & Company from $24.00 to $23.00 in a research note issued to investors on Tuesday,Benzinga reports. The firm presently has an "equal weight" rating on the stock. Wells Fargo & Company's target price points to a potential upside of 12.30% from the company's current price.

Several other equities analysts have also weighed in on the stock. The Goldman Sachs Group initiated coverage on shares of PENN Entertainment in a research report on Friday, June 26th. They set a "buy" rating and a $26.00 price target for the company. Susquehanna raised their price target on shares of PENN Entertainment from $24.00 to $28.00 and gave the stock a "positive" rating in a research note on Wednesday, July 1st. Deutsche Bank Aktiengesellschaft lifted their price target on shares of PENN Entertainment from $17.00 to $18.00 and gave the stock a "hold" rating in a report on Friday, April 24th. Jefferies Financial Group reissued a "hold" rating on shares of PENN Entertainment in a report on Thursday, July 2nd. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of PENN Entertainment in a research report on Wednesday, June 24th. Ten analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $22.19.

PENN Entertainment Trading Up 0.6%

PENN stock opened at $20.48 on Tuesday. PENN Entertainment has a 52 week low of $11.65 and a 52 week high of $22.36. The company has a market capitalization of $2.74 billion, a PE ratio of -3.05, a price-to-earnings-growth ratio of 0.65 and a beta of 1.42. The company's 50-day simple moving average is $19.36 and its 200 day simple moving average is $16.18. The company has a debt-to-equity ratio of 3.94, a quick ratio of 0.82 and a current ratio of 0.82.

PENN Entertainment (NASDAQ:PENN - Get Free Report) last issued its quarterly earnings data on Thursday, April 23rd. The company reported $0.11 earnings per share for the quarter, topping the consensus estimate of $0.05 by $0.06. The business had revenue of $1.78 billion during the quarter, compared to analysts' expectations of $1.74 billion. PENN Entertainment had a negative net margin of 13.55% and a positive return on equity of 0.44%. The business's revenue was up 6.4% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.68 EPS. As a group, sell-side analysts anticipate that PENN Entertainment will post 1.02 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in PENN. Caxton Associates LLP bought a new position in PENN Entertainment during the first quarter valued at approximately $246,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of PENN Entertainment by 30.2% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 344,565 shares of the company's stock worth $5,620,000 after buying an additional 79,978 shares during the last quarter. Russell Investments Group Ltd. grew its position in PENN Entertainment by 6.7% during the second quarter. Russell Investments Group Ltd. now owns 64,280 shares of the company's stock valued at $1,150,000 after buying an additional 4,011 shares during the period. First Trust Advisors LP grew its position in PENN Entertainment by 169.6% during the second quarter. First Trust Advisors LP now owns 94,575 shares of the company's stock valued at $1,690,000 after buying an additional 59,489 shares during the period. Finally, Marshall Wace LLP increased its holdings in PENN Entertainment by 80.2% during the second quarter. Marshall Wace LLP now owns 386,871 shares of the company's stock valued at $6,913,000 after buying an additional 172,158 shares during the last quarter. Institutional investors own 91.69% of the company's stock.

PENN Entertainment Company Profile

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.

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