PENN Entertainment (NASDAQ:PENN) Shares Gap Up on Better-Than-Expected Earnings

PENN Entertainment, Inc. (NASDAQ:PENN)’s stock price gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $12.54, but opened at $13.51. PENN Entertainment shares last traded at $13.9330, with a volume of 1,669,298 shares.

The company reported $0.07 EPS for the quarter, topping analysts’ consensus estimates of ($0.23) by $0.30. The company had revenue of $1.81 billion for the quarter, compared to analysts’ expectations of $1.76 billion. PENN Entertainment had a negative return on equity of 4.59% and a negative net margin of 13.24%.PENN Entertainment’s revenue was up 8.2% on a year-over-year basis. During the same quarter last year, the business earned ($0.44) earnings per share.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on PENN. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of PENN Entertainment in a report on Monday, December 29th. Citizens Jmp cut their target price on PENN Entertainment from $25.00 to $24.00 and set a “market outperform” rating for the company in a research note on Friday, November 7th. Wells Fargo & Company assumed coverage on PENN Entertainment in a research note on Tuesday, November 18th. They issued an “underweight” rating and a $15.00 price target on the stock. Stifel Nicolaus raised PENN Entertainment from a “hold” rating to a “buy” rating and boosted their price target for the stock from $19.00 to $21.00 in a report on Friday, November 7th. Finally, Deutsche Bank Aktiengesellschaft reduced their price objective on PENN Entertainment from $19.00 to $17.00 and set a “hold” rating on the stock in a research note on Friday, November 7th. Nine equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $19.67.

Hedge Funds Weigh In On PENN Entertainment

A number of institutional investors and hedge funds have recently bought and sold shares of PENN. Quarry LP acquired a new stake in shares of PENN Entertainment during the fourth quarter valued at about $36,000. IFP Advisors Inc increased its stake in shares of PENN Entertainment by 76.2% in the fourth quarter. IFP Advisors Inc now owns 2,766 shares of the company’s stock valued at $41,000 after buying an additional 1,196 shares during the period. Modus Advisors LLC acquired a new position in shares of PENN Entertainment in the fourth quarter valued at approximately $47,000. Cloud Capital Management LLC bought a new position in PENN Entertainment in the 3rd quarter valued at approximately $54,000. Finally, Triumph Capital Management acquired a new stake in PENN Entertainment during the 3rd quarter worth approximately $54,000. Institutional investors and hedge funds own 91.69% of the company’s stock.

PENN Entertainment Stock Up 12.0%

The company has a debt-to-equity ratio of 3.65, a quick ratio of 0.75 and a current ratio of 0.75. The stock’s fifty day simple moving average is $13.76 and its two-hundred day simple moving average is $15.96. The stock has a market capitalization of $1.87 billion, a P/E ratio of -2.20, a price-to-earnings-growth ratio of 0.39 and a beta of 1.39.

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.