Market Analysts see Penn National Gaming Inc. [PENN] gaining to $90. Time to buy?

Penn National Gaming Inc. [NASDAQ: PENN] traded at a high on 10/07/20, posting a 0.75 gain after which it closed the day’ session at $68.45. The company report on September 30, 2020 that Penn National Gaming Closes Public Offering of Common Stock, Raising Gross Proceeds of $982.1 Million.

Penn National Gaming, Inc. (PENN: Nasdaq) (“Penn National” or the “Company”) today announced that it has closed on its underwritten public offering of 16,100,000 shares of its common stock, $0.01 par value per share (the “Offering”). The Offering includes 14,000,000 shares of its common stock initially offered by the Company and 2,100,000 shares of its common stock issued pursuant to the option granted the underwriters, which the underwriters exercised in full on September 25, 2020.

“This successful offering provides our Company with additional resources to accelerate our unique omni-channel strategy, including launching the Barstool Sportsbook app in new markets, developing new products and features, establishing Barstool-branded sports bars and retail sportsbooks and reimagining the customer experience at our casinos, all while fortifying our balance sheet,” said Jay Snowden, President and Chief Executive Officer of Penn National. Pro forma for the transaction, as of June 30, 2020, the Company had net traditional debt of approximately $1 billion, representing a significant reduction from pre-COVID-19 periods.

The results of the trading session contributed to over 4930311 shares changing hands. Over the past one week, the price volatility of Penn National Gaming Inc. stands at 5.35% while the volatility over the past one month is 8.03%.

The market cap for PENN stock reached $10.67 billion, with 155.16 million shares outstanding and 130.66 million shares in the current float. Compared to the average trading volume of 9.78M shares, PENN reached a trading volume of 4930311 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Penn National Gaming Inc. [PENN]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for PENN shares is $70.64 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on PENN stock is a recommendation set at 2.30. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Rosenblatt have made an estimate for Penn National Gaming Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on September 30, 2020. While these analysts kept the previous recommendation, Macquarie raised their target price from $56 to $66. The new note on the price target was released on September 24, 2020, representing the official price target for Penn National Gaming Inc. stock. Previously, the target price had yet another raise from $47 to $85, while Stifel kept a Buy rating on PENN stock.

The Average True Range (ATR) for Penn National Gaming Inc. is set at 5.01, with the Price to Sales ratio for PENN stock in the period of the last 12 months amounting to 2.59. The Price to Book ratio for the last quarter was 5.85, with the Price to Cash per share for the same quarter was set at 7.98. Price to Free Cash Flow for PENN in the course of the last twelve months was 62.38 with Quick ratio for the last quarter at 2.00.

How has PENN stock performed recently?

Penn National Gaming Inc. [PENN] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -5.85. With this latest performance, PENN shares gained by 23.76% in over the last four-week period, additionally plugging by 431.03% over the last 6 months – not to mention a rise of 269.30% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for PENN stock in for the last two-week period is set at 54.66, with the RSI for the last a single of trading hit 49.95, and the three-weeks RSI is set at 56.78 for Penn National Gaming Inc. [PENN]. The present Moving Average for the last 50 days of trading for this stock 57.66, while it was recorded at 70.74 for the last single week of trading, and 33.24 for the last 200 days.

Penn National Gaming Inc. [PENN]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Penn National Gaming Inc. [PENN] shares currently have an operating margin of +14.13 and a Gross Margin at +36.46. Penn National Gaming Inc.’s Net Margin is presently recorded at +0.83.

Return on Total Capital for PENN is now 6.38, given the latest momentum, and Return on Invested Capital for the company is 0.38. Return on Equity for this stock inclined to 3.40, with Return on Assets sitting at 0.31. When it comes to the capital structure of this company, Penn National Gaming Inc. [PENN] has a Total Debt to Total Equity ratio set at 611.45. Additionally, PENN Total Debt to Total Capital is recorded at 85.94, with Total Debt to Total Assets ending up at 73.64. Long-Term Debt to Equity for the company is recorded at 598.82, with the Long-Term Debt to Total Capital now at 84.17.

Reflecting on the efficiency of the workforce at the company, Penn National Gaming Inc. [PENN] managed to generate an average of $1,551 per employee. Receivables Turnover for the company is 54.22 with a Total Asset Turnover recorded at a value of 0.37.Penn National Gaming Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.00 and a Current Ratio set at 2.00.

Earnings analysis for Penn National Gaming Inc. [PENN]

With the latest financial reports released by the company, Penn National Gaming Inc. posted 0.38/share EPS, while the average EPS was predicted by analysts to be reported at 0.43/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -11.60%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for PENN. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Penn National Gaming Inc. go to 42.64%.

Insider trade positions for Penn National Gaming Inc. [PENN]

There are presently around $8,365 million, or 81.00% of PENN stock, in the hands of institutional investors. The top three institutional holders of PENN stocks are: FMR LLC with ownership of 17,840,286, which is approximately 69.81% of the company’s market cap and around 0.40% of the total institutional ownership; BLACKROCK INC., holding 15,577,473 shares of the stock with an approximate value of $1.07 billion in PENN stocks shares; and BAMCO INC /NY/, currently with $831.14 million in PENN stock with ownership of nearly 13.231% of the company’s market capitalization.

Positions in Penn National Gaming Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 214 institutional holders increased their position in Penn National Gaming Inc. [NASDAQ:PENN] by around 38,690,294 shares. Additionally, 137 investors decreased positions by around 13,631,877 shares, while 33 investors held positions by with 69,886,248 shares. The mentioned changes placed institutional holdings at 122,208,419 shares, according to the latest SEC report filing. PENN stock had 100 new institutional investments in for a total of 13,685,894 shares, while 51 institutional investors sold positions of 5,493,287 shares during the same period.

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