why PENN Entertainment Inc [PENN] is a Good Choice for Investors After New Price Target of $26.75

PENN Entertainment Inc [NASDAQ: PENN] gained 2.71% on the last trading session, reaching $17.06 price per share at the time. The company report on February 15, 2024 at 7:00 AM that PENN Entertainment Reports Fourth Quarter Results.

PENN Entertainment, Inc. (“PENN” or the “Company”) (Nasdaq: PENN) today reported financial results for the three months and year ended December 31, 2023.

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Jay Snowden, Chief Executive Officer and President, said: “PENN delivered another quarter of solid property level performance while continuing to invest in our high growth digital business, which we believe will create significant long term shareholder value. Our retail results reflect strong customer demand and well-executed strategies across our portfolio. In our Interactive segment, ESPN BET attracted significantly more first-time depositors (FTDs) than we anticipated, which drove higher than expected promotional expense. Our successful launch led to substantial expansion in key performance indicators (KPIs) including monthly active users (MAUs), handle, and cash handle. Importantly, strong early retention and consistent user acquisition have led to steady month-over-month increases in cash handle as our promotional expense has started to normalize entering 2024. ESPN BET has also attracted the mass market sports fan, highlighting the potential to expand the appeal of sports betting and grow the overall market. This foundation sets the stage for continued growth and market share gains as we introduce further product enhancements and deeper integrations into the ESPN media ecosystem.

If compared to the average trading volume of 5.49M shares, PENN reached a trading volume of 9553200 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 Entertainment Inc [PENN]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for PENN shares is $26.75 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 2.16. 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.

BofA Securities have made an estimate for PENN Entertainment Inc shares, keeping their opinion on the stock as Buy, with their previous recommendation back on November 20, 2023. While these analysts kept the previous recommendation, CapitalOne raised their target price to Equal Weight. The new note on the price target was released on October 12, 2023, representing the official price target for PENN Entertainment Inc stock. Previously, the target price had yet another drop from $33 to $30, while Truist kept a Hold rating on PENN stock. On August 10, 2023, analysts decreased their price target for PENN shares from 56 to 30.

The Average True Range (ATR) for PENN Entertainment Inc is set at 1.10, with the Price to Sales ratio for PENN stock in the period of the last 12 months amounting to 0.41. The Price to Book ratio for the last quarter was 0.81, with the Price to Cash per share for the same quarter was set at 7.17. Price to Free Cash Flow for PENN in the course of the last twelve months was 6.47 with Quick ratio for the last quarter at 1.11.

Trading performance analysis for PENN stock

PENN Entertainment Inc [PENN] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -11.99. With this latest performance, PENN shares dropped by -27.31% in over the last four-week period, additionally sinking by -25.11% over the last 6 months – not to mention a drop of -46.22% 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 26.62, with the RSI for the last a single of trading hit 22.84, and the three-weeks RSI is set at 30.58 for PENN Entertainment Inc [PENN]. The present Moving Average for the last 50 days of trading for this stock 23.20, while it was recorded at 17.39 for the last single week of trading, and 23.71 for the last 200 days.

PENN Entertainment Inc [PENN]: A deeper dive into fundamental analysis

PENN Entertainment Inc’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.11 and a Current Ratio set at 1.11.

PENN Entertainment Inc [PENN]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, PENN Entertainment Inc posted 3.05/share EPS, while the average EPS was predicted by analysts to be reported at 0.37/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 724.30%. 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 Entertainment Inc go to 9.09%.

An analysis of Institutional ownership at PENN Entertainment Inc [PENN]

The top three institutional holders of PENN stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2815%. BLACKROCK INC., holding 1.03 billion shares of the stock with an approximate value of $176.59 billion in PENN stocks shares; and BERKSHIRE HATHAWAY INC, currently with $156.75 billion in PENN stock with ownership which is approximately 5.8325%.