Vanguard Group Inc. has decreased its stake in PENN Entertainment, Inc. (NASDAQ: PENN) by 0.7%, as reported in its recent filing with the Securities and Exchange Commission (SEC). The investment firm now holds 16,249,162 shares of PENN following the sale of 108,136 shares during the first quarter of 2023. This reduction brings Vanguard’s ownership to approximately 10.77% of the company, valued at around $265 million.
Other institutional investors have also adjusted their holdings in PENN Entertainment. GAMMA Investing LLC increased its stake by 38.7%, acquiring an additional 736 shares to reach a total of 2,636 shares worth $43,000. Byrne Asset Management LLC raised its position by a significant 201.1%, with the purchase of 1,810 shares, bringing its total to 2,710 shares valued at $44,000. Similarly, Signaturefd LLC’s stake surged by 1,371.6%, now holding 7,211 shares worth $118,000, following an acquisition of 6,721 shares.
KBC Group NV and Blue Trust Inc. have also ramped up their investments, increasing their stakes by 42.2% and 56.0%, respectively. Collectively, institutional investors control approximately 91.69% of PENN Entertainment’s stock.
PENN Entertainment’s Recent Performance and Outlook
On August 7, PENN Entertainment announced its earnings, reporting $0.10 earnings per share for the quarter. This figure surpassed analysts’ consensus estimates of a loss of $0.04 by $0.14. The company’s revenue for the quarter reached $1.77 billion, exceeding the projected $1.73 billion. Year-over-year, PENN’s revenue increased by 6.1%, while the company faced a negative net margin of 1.12% and a negative return on equity of 4.36%.
Trading for PENN Entertainment opened at $18.67 on Tuesday, with a market capitalization of $2.73 billion. The company’s shares have fluctuated over the past year, achieving a low of $13.25 and a high of $23.08. The stock’s performance is currently reflected in a P/E ratio of -33.34 and a beta of 1.60.
Insider Activity and Analyst Ratings
In recent insider transactions, CEO Jay A. Snowden purchased 34,000 shares at an average price of $14.70 per share, totaling $499,800. Following this acquisition, Snowden’s holdings increased to 1,082,625 shares, valued at approximately $15.91 million. Additionally, Director David A. Handler acquired 20,000 shares at an average cost of $16.96, leading to a total investment of $339,200.
In the past three months, insiders have purchased a total of 64,000 shares for a combined value of $987,300, indicating a strong confidence in the company’s future. Insiders currently hold around 2.67% of PENN’s stock.
Analysts have varied opinions on PENN Entertainment’s stock. Recently, Citizens JMP upgraded the company from a “market perform” rating to “outperform,” establishing a target price of $24.00. Benchmark reiterated a “hold” rating, while Stifel Nicolaus increased their price objective from $17.00 to $19.00, maintaining a “hold” stance. Barclays and Canaccord Genuity Group lowered their target prices to $22.00 and $26.00, respectively, with both firms suggesting a “buy” rating.
Overall, PENN Entertainment has received two sell ratings, six hold ratings, and eleven buy ratings, resulting in an average rating of “Hold” and a consensus target price of $23.25, according to MarketBeat.com.
PENN Entertainment, Inc. operates integrated entertainment, sports content, and casino gaming experiences through its various segments, including Northeast, South, West, Midwest, and Interactive. The company has expanded its online sports betting and iCasino services under the Hollywood Casino, L’Auberge, ESPN BET, and theScore Bet Sportsbook and Casino brands.