PENN Entertainment: Surge in Call Options Trading by 52%

Quick Overview:

• PENN Entertainment saw a 52% surge in call options trading, with 41,314 call options purchased.
• The earnings report showed an EPS of -$0.79 and revenue of $1.61 billion, both below estimates.
• Insider trading activity includes significant executive purchases, with institutional investors owning 91.69% of shares.

On Thursday, PENN Entertainment experienced a significant surge in call options trading. Investors purchased a remarkable 41,314 call options, far surpassing the average daily volume of 27,196. This activity represents a notable 52% increase. Therefore indicating heightened interest and speculative activity around the stock.

PENN Stock Opens at $20.04, Up 9.9%

PENN Entertainment’s stock price opened at $20.04 by Friday, reflecting a robust 9.9% increase. This positive movement places the stock within a range that is closer to its 52-week high of $29.38 while still considerably above the 52-week low of $13.50. The stock’s fifty-day moving average is $16.65, and its two-hundred-day moving average is $19.70. PENN Entertainment’s market capitalisation is valued at $3.06 billion, with a PE ratio of -2.69, indicating that the company is operating at a loss. The stock’s beta of 2.06 suggests high volatility. The company’s quick and current ratios are both at 1.04, showing adequate liquidity, while a debt-to-equity ratio of 2.33 points to significant leverage.

The recent earnings report was released on Thursday, May 2nd. It revealed earnings per share (EPS) of -$0 was below the consensus estimate of -$0.59. Besides, the company’s revenue for the period was $1.61 billion, slightly missing the expected $1.63 billion. The net margin stood at -17.77%, and the return on equity was -3.53%. For the current year, the forecasted EPS is -1.35, underscoring ongoing financial challenges.

Analyst Ratings: PENN Consensus Target $24.43

Various financial institutions have recently updated their ratings and target prices for PENN Entertainment. Barclays reduced its target price from $26.00 to $22.00 but maintained an “Overweight” rating on Friday, May 3rd. Morgan Stanley adjusted its target price to $22.00 from $21.00 with an “Equal-Weight” rating on Tuesday, April 9th. Needham & Company LLC recommends a “Buy” with a target price of $26.00 as of Wednesday, May 15th. Craig-Hallum downgraded its target price to $20.00 from $25.00 and changed its rating to “Hold” on Friday, May 3rd, while Benchmark also issued a “Hold” rating the same day. The consensus rating among analysts comprises 1 “Sell,” 8 “Hold,” and 8 “Buy” ratings, resulting in an overall “Hold” recommendation with a consensus target price of $24.43.

Insider Buys: CFO Acquires 16,157 Shares at $15.47

Recent insider trading activity shows significant purchases by key executives. On Monday, May 6th, Felicia Hendrix, the Chief Financial Officer, acquired 16,157 shares at $15.47 per share, amounting to a total transaction value of $249,948.79. This purchase increased her total holdings to 68,596 shares, valued at $1,061,180.12 post-transaction. Similarly, Director David A. Handler bought 20,000 shares at $15.37 per share, with a total transaction value of $307,400.00, increasing his total holdings to 243,450 shares valued at $3,741,826.50 post-transaction. Over the last quarter, insiders have purcal 76,157 shares, amounting to $1,154,949, representing 2.19% of the company’s ownership.

Institutional Investors Own 91.69% of PENN Shares

Institutional ownership remains strong, with notable transactions in the recent quarter. Harbor Investment Advisory LLC initiated a new stake valued at $32,000 in the fourth quarter. Lindbrook Capital LLC increased its stake by 57.1%, adding 553 total of 1,521 shares valued at $40,000. Neo Ivy Capital Management also acquired a new stake worth $40,000 in the fourth quarter. Tyler Stone Wealth Management increased its holdings by adding 500 shares, bringing its total to 1,971 shares valued at $45,000. DekaBank Deutsche Girozentrale established a new stake valued at $55,000 in the third quarter. Institutional investors own 91.69% of PENN Entertainment’s shares, reflecting a high confidence level among large-scale investors.