Penn National Gaming (PENN) Shares Gap Down Following Weak Earnings

Penn National Gaming, Inc (NASDAQ:PENN) gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $26.06, but opened at $24.28. Penn National Gaming shares last traded at $23.88, with a volume of 5573357 shares changing hands.

The company reported $0.38 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.43 by ($0.05). The company had revenue of $789.70 million during the quarter, compared to analysts’ expectations of $807.79 million. Penn National Gaming had a net margin of 18.02% and a return on equity of 268.43%. The company’s quarterly revenue was down 2.0% compared to the same quarter last year. During the same period in the prior year, the business posted $0.25 earnings per share.

A number of analysts have commented on the stock. BidaskClub downgraded shares of Penn National Gaming from a “hold” rating to a “sell” rating in a report on Saturday, October 27th. ValuEngine downgraded shares of Penn National Gaming from a “hold” rating to a “sell” rating in a report on Wednesday, October 24th. Bank of America increased their price objective on shares of Penn National Gaming from $36.50 to $38.00 and gave the company a “neutral” rating in a report on Tuesday, July 17th. UBS Group downgraded shares of Penn National Gaming from a “buy” rating to a “hold” rating in a report on Thursday, July 26th. Finally, Zacks Investment Research downgraded shares of Penn National Gaming from a “buy” rating to a “hold” rating in a report on Tuesday, August 28th. Two investment analysts have rated the stock with a sell rating, five have issued a hold rating and eight have given a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and a consensus price target of $36.08.

In other news, CEO Timothy J. Wilmott purchased 100,000 shares of the business’s stock in a transaction dated Wednesday, August 15th. The stock was acquired at an average price of $30.85 per share, for a total transaction of $3,085,000.00. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Saul Reibstein sold 6,694 shares of the firm’s stock in a transaction that occurred on Friday, August 24th. The stock was sold at an average price of $35.00, for a total transaction of $234,290.00. Following the sale, the director now owns 25,642 shares of the company’s stock, valued at approximately $897,470. The disclosure for this sale can be found here. 10.56% of the stock is owned by company insiders.

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Piedmont Investment Advisors LLC increased its holdings in shares of Penn National Gaming by 3.6% during the 2nd quarter. Piedmont Investment Advisors LLC now owns 48,816 shares of the company’s stock worth $1,640,000 after buying an additional 1,685 shares during the last quarter. Meeder Asset Management Inc. increased its holdings in shares of Penn National Gaming by 19.4% during the 2nd quarter. Meeder Asset Management Inc. now owns 10,757 shares of the company’s stock worth $361,000 after buying an additional 1,745 shares during the last quarter. Aperio Group LLC increased its holdings in shares of Penn National Gaming by 13.7% during the 2nd quarter. Aperio Group LLC now owns 15,423 shares of the company’s stock worth $518,000 after buying an additional 1,859 shares during the last quarter. Strs Ohio increased its holdings in shares of Penn National Gaming by 1.5% during the 2nd quarter. Strs Ohio now owns 180,200 shares of the company’s stock worth $6,052,000 after buying an additional 2,600 shares during the last quarter. Finally, United Services Automobile Association increased its holdings in shares of Penn National Gaming by 16.3% during the 2nd quarter. United Services Automobile Association now owns 19,023 shares of the company’s stock worth $639,000 after buying an additional 2,673 shares during the last quarter. Institutional investors and hedge funds own 99.40% of the company’s stock.

The firm has a market capitalization of $2.15 billion, a PE ratio of 2.66, a P/E/G ratio of 1.13 and a beta of 1.61. The company has a current ratio of 0.63, a quick ratio of 0.63 and a debt-to-equity ratio of 162.63.

Penn National Gaming Company Profile (NASDAQ:PENN)

Penn National Gaming, Inc owns and manages gaming and racing facilities, and operates video gaming terminals with a focus on slot machine entertainment. The company operates through Northeast, South/West, and Midwest segments. As of December 31, 2017, it operated 27 facilities in 17 jurisdictions, including California, Florida, Illinois, Indiana, Kansas, Maine, Massachusetts, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Pennsylvania, Texas, West Virginia, and Ontario, Canada.

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