Is There More Upside Ahead For Penn National Gaming Inc. (NASDAQ: PENN)


    Fidelity Management & Research Co.. has recently announced that it has increased stake in Penn National Gaming Inc. (NASDAQ:PENN) by 69.45%. After grabbing 17.36 million shares, the institutional investor is now in possession of 7.12 million shares of the Consumer Cyclical Company. The new investment brought the stake of investor firm to 12.77% having worth around $587.8 million. Moreover, BlackRock Fund Advisors increased its share by 2.22 million to have a control over 13.61 million shares. And BAMCO, Inc. raised its holdings to 1.42 million shares by acquiring 12.14 million shares or 8.93% of the stake.

    Penn National Gaming Inc. (PENN) concluded trading on 08/26/20 at a closing price of $55.18, with 3.07 million shares of worth about $169.27 million changed hands on the day. Weekly performance of the stock remained positive as price took a surge of 0.82% during that period and on Wednesday the price saw a loss of about -1.78%. Currently the company’s common shares owned by public are about 137.63M shares, out of which, 129.91M shares are available for trading.

    A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 13 analysts are covering the PENN stock and their offered price forecasts bring an average price target of $48.50. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $62.00 and could fall to a lowest price of $22.00. Analysts also issued an outlook of 2.20 for the Penn National Gaming Inc. stock for next 12 months. The stock’s current price level is -13.77% below of average price target set by the analysts, while a dip to estimated low would result in loss of -150.82 for the stock. However, touching the estimated high of $62.00 would mean a gain of 11.0% for the stock.

    According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 89 times over the past 12 months. They bought 638,144 shares in 54 of the transactions. In 35 selling transactions, insiders dumped 687,357 shares.

    Baron Growth Fund, Fidelity Blue Chip Growth Fund, and Vanguard Total Stock Market Index are the top 3 mutual funds which are holding stakes in Penn National Gaming Inc. Baron Growth Fund is currently holding 6.25 million shares of worth totaling $211.56 million. The company recently came buying 0.0 shares which brought its stake up to 4.60% of the company’s outstanding shares. Fidelity Blue Chip Growth Fund bought 0.41 million shares, after which its hold over company’s outstanding shares expand to 2.91%, leaving 3.95 million shares with the mutual fund that have a worth of about $133.74 million. Vanguard Total Stock Market Index, after selling 3.68 million shares, have now control over 2.71% of the stake in the company. It holds 1943.0 shares of worth $124.58 million.

    Penn National Gaming Inc. (NASDAQ: PENN) started trading at $56.41, above $0.23 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $55.18, or with a loss of -1.78%. Stock saw a price change of 0.82% in past 5 days and over the past one month there was a price change of 66.20%. Year-to-date (YTD), PENN shares are showing a performance of 115.88% which increased to 207.92% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $3.75 but also hit the highest price of $57.93 during that period. While comparing its average daily trading volume of 11.78 million shares, we see that about 3.07 million changed hands on the day. The stock is currently trading 16.41% above its 20-day simple moving average (SMA20), while that difference is up 44.39% for SMA50 and it goes to 103.89% higher than SMA200.

    Fidelity Management & Research Co.. acquired 17.36 million shares of Penn National Gaming Inc. having value of about $587.8 million. Data submitted at the U.S SEC by Fidelity Management & Research Co.. revealed that the firm now holds 7.12 million shares in the company valued at close to $392705355.08, or have control over 69.45% stake in the company. Penn National Gaming Inc. (NASDAQ: PENN) currently have 137.63M outstanding shares and institutions hold larger chunk of about 90.40% of that. Holding of mutual funds in the company is about 5.62% while other institutional holders and individual stake holders have control over 52.28% and 38.18% of the stake respectively.

    The stock has a current market capitalization of $7.73B and its 3Y-monthly beta is at 2.79. It has posted earnings per share of -$7.37 in the same period. It has Quick Ratio of 2.00 while making debt-to-equity ratio of 5.03. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for PENN, volatility over the week remained 4.70% while standing at 7.97% over the month.

    Analysts are in expectations that Penn National Gaming Inc. (PENN) stock would likely to be making an EPS of $0.01 in the current quarter, while forecast for next quarter ESPS is $0.12 and it is $1.08 for next year. For the current quarter EPS, analysts have given the company a lowest target -$0.79 which is $0.44 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $0.38 in the same quarter a year ago. Stock’s fiscal year EPS is expected to drop by -60.00% while it is estimated to increase by 117.30% in next year. EPS is likely to grow at an annualized rate of 42.64% for next 5-years, compared to annual growth of 16.60% made by the stock over the past 5-years.

    Analysts at 13 brokerage firms have issued recommendations for the Penn National Gaming Inc. (PENN)’s stock and average of those rates the stock at a “Moderate Buy” and assign it a score of 2.20. Out of those 13 Wall Street analysts, 9 recommended a “Buy” rating, while 3 were in favor recommending the stock as a “Hold” and 1 analyst recommended the stock as “Sell”.

    Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by Goldman on August 13, 2020 offering a Buy rating for the stock and assigned a target price of $60 to it. Coverage by Susquehanna stated Penn National Gaming Inc. (PENN) stock as a Neutral in their note to investors on June 09, 2020, suggesting a price target of $34 for the stock. On June 08, 2020, Deutsche Bank Downgrade their recommendations, while on January 31, 2020, Deutsche Bank Downgrade their ratings for the stock with a price target of $32. Stock get a Hold rating from Jefferies on November 01, 2019.


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