Vanguard Group Inc. has decreased its holdings in PENN Entertainment, Inc. by 0.7% during the first quarter of 2023. According to its latest 13F filing with the Securities and Exchange Commission (SEC), the investment firm sold 108,136 shares, bringing its total ownership to 16,249,162 shares. This reduction means that Vanguard now holds approximately 10.77% of PENN Entertainment, valued at around $265 million.
This move comes as other institutional investors also adjust their positions in the gaming and entertainment company. Notably, GAMMA Investing LLC increased its stake by an impressive 38.7%, acquiring an additional 736 shares to reach a total of 2,636 shares, valued at $43,000. Similarly, Byrne Asset Management LLC raised its stake by 201.1%, now owning 2,710 shares worth $44,000. Other significant adjustments include Signaturefd LLC, which boosted its holdings by 1,371.6%, and KBC Group NV, which increased its stake by 42.2%. Collectively, institutional investors control 91.69% of PENN Entertainment’s shares.
Market Performance and Earnings Report
On Tuesday, PENN Entertainment shares opened at $18.67, reflecting a 2.4% increase. The company’s market capitalization stands at $2.73 billion, with a price-to-earnings (P/E) ratio of -33.34. PENN has a debt-to-equity ratio of 2.39, and both its current and quick ratios are 0.79. Over the past year, its stock has fluctuated between a low of $13.25 and a high of $23.08.
In its most recent earnings announcement on August 7, 2023, PENN reported earnings of $0.10 per share, surpassing analysts’ expectations of a loss of $0.04 per share. Revenue for the quarter reached $1.77 billion, exceeding the consensus estimate of $1.73 billion. Despite these positive results, PENN Entertainment recorded a negative net margin of 1.12% and a negative return on equity of 4.36%. The company’s revenue increased by 6.1% year-over-year, compared to a loss of $0.18 per share during the same period last year.
Insider Activity and Analyst Ratings
Insider trading activity has also been notable. CEO Jay A. Snowden purchased 34,000 shares at an average price of $14.70 per share on May 22, 2023, totaling approximately $499,800. Following this transaction, Snowden’s holdings increased to 1,082,625 shares. Additionally, Director David A. Handler bought 20,000 shares at an average price of $16.96 per share on August 8, 2023, amounting to around $339,200. In total, insiders have acquired 64,000 shares valued at approximately $987,300 over the past three months.
Analysts have provided mixed ratings on PENN’s stock. Citizens JMP upgraded the stock from “market perform” to “outperform,” setting a price target of $24.00. Conversely, Barclays lowered its target price from $23.00 to $22.00, maintaining an “overweight” rating. Overall, PENN currently holds an average rating of “Hold” from analysts, with a consensus price target of $23.25 according to MarketBeat.com.
PENN Entertainment, Inc. operates a diverse portfolio in the gaming and entertainment sector, providing integrated entertainment, sports content, and casino experiences through various brands, including Hollywood Casino and ESPN BET. As the company continues to navigate through market fluctuations and institutional adjustments, its strategic decisions and performance will remain closely monitored by investors and analysts alike.
