Is Penn National Gaming Inc. (NASDAQ: PENN) Back In The Buying Zone?

DE Stock
DE Stock

Fidelity Management & Research Co.. recently announced the acquisition of new stake in Penn National Gaming Inc. (NASDAQ:PENN). The institutional investor has increased its shareholding in the Consumer Cyclical company by 69.45% to 17.36 million shares with purchase of 7.12 million shares. This fresh investment now brings its stake to 12.77% valued currently at $587.8 million. In addition, BlackRock Fund Advisors raised its holdings by 2.22 million to 13.61 million shares. And BAMCO, Inc. has lifted its position by 13.23% or 1.42 million shares – to 12.14 million shares.

With over 9.87 million Penn National Gaming Inc. (PENN) shares trading Tuesday and a closing price of $57.93 on the day, the dollar volume was approximately $571.56 million. The shares have shown a positive weekly performance of 3.11% and its price on 09/01/20 gained nearly 13.37%. Currently, there are 137.63M common shares owned by the public and among those 129.91M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 14 analysts who have offered their price forecasts for PENN have a consensus price objective of $51.15. The analysts have set the share’s price value over the next 12 months at a high of $75.00 and a low of $22.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Penn National Gaming Inc. stock is 2.20 for the next 12 months. The average price target is -19.44% below its last price level and a downside to the estimated low will see the stock lose -163.32% over that period. But an upside of 22.76% will see the stock hit the forecast high price target while mean target price for the stock is $50.00.

Insiders at the company have transacted a total of 89 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 54 of these insider trades were purchases, accounting for 638,144 shares. Insider sales of the common stock occurred on 35 occasions, with total insider shares sold totaling 687,357 shares.

The top 3 mutual fund holders in Penn National Gaming Inc. are Baron Growth Fund, Fidelity Blue Chip Growth Fund, and Vanguard Total Stock Market Index. Baron Growth Fund owns 6.25 million shares of the company’s stock, all valued at over $211.56 million. Fidelity Blue Chip Growth Fund bought 0.41 million shares to see its total holdings expand to 3.95 million shares valued at over $133.74 million and representing 2.91% of the shares outstanding. Vanguard Total Stock Market Index sold 1943.0 shares to bring its total holdings to over 3.68 million shares at a value of $124.58 million. Vanguard Total Stock Market Index now owns shares totaling to 2.71% of the shares outstanding.

Shares of Penn National Gaming Inc. (NASDAQ: PENN) opened at $53.31, up $2.21 from a prior closing price of $51.10. However, the script later closed the day at $57.93, up 13.37%. The company’s stock has a 5-day price change of 3.11% and 77.10% over the past three months. PENN shares are trading 126.64% year to date (YTD), with the 12-month market performance up to 213.47% higher. It has a 12-month low price of $3.75 and touched a high of $57.93 over the same period. Currently, 9.87 million shares have been traded, compared to an average intraday trading volume of 10.63 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 13.70%, 44.98%, and 109.18% respectively.

Institutional ownership of Penn National Gaming Inc. (NASDAQ: PENN) shares accounts for 90.30% of the company’s 137.63M shares outstanding. Mutual fund holders own 5.62%, while other institutional holders and individual stakeholders account for 52.18% and 38.24% respectively.

It has a market capitalization of $8.18B and a beta (3y monthly) value of 2.89. The earnings-per-share (ttm) stands at -$7.37. Price movements for the stock have been influenced by the stock’s volatility, which stands at 6.01% over the week and 7.41% over the month.

Analysts forecast that Penn National Gaming Inc. (PENN) will achieve an EPS of $0.01 for the current quarter, $0.11 for the next quarter and $1.07 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.79 while analysts give the company a high EPS estimate of $0.52. Comparatively, EPS for the current quarter was $0.38 a year ago. Earnings per share for the fiscal year are expected to decrease by -60.00%, and 117.20% over the next financial year. EPS should grow at an annualized rate of 42.64% over the next five years, compared to 16.60% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 14 brokerage firm advisors rate Penn National Gaming Inc. (PENN) as a “Moderate Buy” at a consensus score of 2.20. Specifically, 9 Wall Street analysts polled rate the stock as a buy, while 4 of the 14 advise that investors “hold,” and 1 rated it as a “Sell.”

Looking at the support for the PENN, a number of firms have released research notes about the stock. Craig Hallum stated their Buy rating for the stock in a research note on September 01, 2020, with the firm’s price target at $75. Morgan Stanley coverage for the Penn National Gaming Inc. (PENN) stock in a research note released on August 28, 2020 offered a Equal-Weight rating with a price target of $55. Goldman was of a view on August 13, 2020 that the stock is Buy, while Susquehanna gave the stock Neutral rating on June 09, 2020, issuing a price target of $34. Deutsche Bank on their part issued Sell rating on June 08, 2020.


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