Penn National Gaming Inc. [NASDAQ: PENN] loss -0.98% or -0.79 points to close at $79.68 with a heavy trading volume of 3372796 shares. The company report on May 27, 2021 that Penn National Gaming Receives Final Regulatory Approval to Acquire Operations of Hollywood Casino Perryville.
Penn National Gaming, Inc. (PENN: Nasdaq)(“Penn National” or the “Company”) announced that it has received final approval from the Maryland Lottery and Gaming Control Commission (“Commission”) to acquire the operations of Hollywood Casino Perryville. Penn National entered into a definitive agreement with Gaming and Leisure Properties, Inc. (GLPI: Nasdaq) (“GLPI”) in December 2020 to acquire the operations of Hollywood Casino Perryville for $31.1 million in cash, subject to certain customary working capital adjustments. Simultaneous with the closing of the transaction, Penn National will enter into a lease with GLPI for the real estate assets associated with the Hollywood Casino Perryville facility with annual rent of approximately $7.77 million.
“I want to thank the Commission and their staff for their time and effort in reviewing and approving our Company’s license to operate Hollywood Casino Perryville,” said Jay Snowden, President and CEO of Penn National. “We are thrilled to be re-entering the Maryland market at a property we developed in 2010 as it will add a twentieth gaming jurisdiction to our already leading nationwide footprint.
It opened the trading session at $79.13, the shares rose to $80.99 and dropped to $77.395, the range by which the price of stock traded the whole day. The daily chart for PENN points out that the company has recorded 13.78% gains over the past six months. However, it is still -195.55% lower than its most recent low trading price.
If we look at the average trading volume of 5.17M shares, PENN reached to a volume of 3372796 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying 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 $105.36 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 2.40. 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.
Redburn have made an estimate for Penn National Gaming Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on April 27, 2021. While these analysts kept the previous recommendation, Needham raised their target price to Buy. The new note on the price target was released on April 27, 2021, representing the official price target for Penn National Gaming Inc. stock. Previously, the target price had yet another raise from $120 to $150, while Craig Hallum kept a Buy rating on PENN stock.
The Average True Range (ATR) for Penn National Gaming Inc. is set at 4.11, with the Price to Sales ratio for PENN stock in the period of the last 12 months amounting to 3.39. The Price to Book ratio for the last quarter was 4.54, with the Price to Cash per share for the same quarter was set at 12.98. Price to Free Cash Flow for PENN in the course of the last twelve months was 29.25 with Quick ratio for the last quarter at 2.50.
Trading performance analysis for PENN stock
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 -4.56. With this latest performance, PENN shares dropped by -11.13% in over the last four-week period, additionally plugging by 13.78% over the last 6 months – not to mention a rise of 143.60% 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 40.29, with the RSI for the last a single of trading hit 40.97, and the three-weeks RSI is set at 40.56 for Penn National Gaming Inc. [PENN]. The present Moving Average for the last 50 days of trading for this stock 91.13, while it was recorded at 81.31 for the last single week of trading, and 85.85 for the last 200 days.
Penn National Gaming Inc. [PENN]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Penn National Gaming Inc. [PENN] shares currently have an operating margin of +5.99 and a Gross Margin at +37.56. Penn National Gaming Inc.’s Net Margin is presently recorded at -18.71.
Return on Total Capital for PENN is now 1.59, given the latest momentum, and Return on Invested Capital for the company is -5.05. Return on Equity for this stock declined to -29.70, with Return on Assets sitting at -4.12. 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 420.05. Additionally, PENN Total Debt to Total Capital is recorded at 80.77, with Total Debt to Total Assets ending up at 65.15. Long-Term Debt to Equity for the company is recorded at 414.18, with the Long-Term Debt to Total Capital now at 78.95.
Reflecting on the efficiency of the workforce at the company, Penn National Gaming Inc. [PENN] managed to generate an average of -$36,543 per employee. Receivables Turnover for the company is 38.67 with a Total Asset Turnover recorded at a value of 0.22.Penn National Gaming Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.50 and a Current Ratio set at 2.50.
Penn National Gaming Inc. [PENN]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Penn National Gaming Inc. posted -1.69/share EPS, while the average EPS was predicted by analysts to be reported at -2.11/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 19.90%. 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.
An analysis of insider ownership at Penn National Gaming Inc. [PENN]
There are presently around $10,898 million, or 87.80% of PENN stock, in the hands of institutional investors. The top three institutional holders of PENN stocks are: FMR LLC with ownership of 20,884,035, which is approximately 1.605% of the company’s market cap and around 1.10% of the total institutional ownership; BLACKROCK INC., holding 16,066,716 shares of the stock with an approximate value of $1.28 billion in PENN stocks shares; and VANGUARD GROUP INC, currently with $1.21 billion in PENN stock with ownership of nearly 9.175% of the company’s market capitalization.
Positions in Penn National Gaming Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 354 institutional holders increased their position in Penn National Gaming Inc. [NASDAQ:PENN] by around 13,996,652 shares. Additionally, 233 investors decreased positions by around 18,754,677 shares, while 58 investors held positions by with 104,023,582 shares. The mentioned changes placed institutional holdings at 136,774,911 shares, according to the latest SEC report filing. PENN stock had 160 new institutional investments in for a total of 2,180,062 shares, while 56 institutional investors sold positions of 3,934,820 shares during the same period.