Traders Buy Large Volume of Call Options on PENN Entertainment (NASDAQ:PENN)

PENN Entertainment, Inc. (NASDAQ:PENN) was the target of unusually large options trading activity on Tuesday. Traders purchased 30,243 call options on the stock. This is an increase of 110% compared to the average daily volume of 14,427 call options.

PENN Entertainment Price Performance

NASDAQ:PENN traded up $1.09 on Tuesday, reaching $19.82. The stock had a trading volume of 4,054,001 shares, compared to its average volume of 4,813,955. The company has a market capitalization of $3.03 billion, a P/E ratio of -5.58 and a beta of 2.08. The stock has a fifty day moving average price of $19.97 and a 200-day moving average price of $19.30. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 2.34. PENN Entertainment has a 1-year low of $13.50 and a 1-year high of $26.53.

PENN Entertainment (NASDAQ:PENN) last released its quarterly earnings results on Thursday, November 7th. The company reported ($0.24) EPS for the quarter, topping analysts’ consensus estimates of ($0.28) by $0.04. PENN Entertainment had a negative return on equity of 14.44% and a negative net margin of 8.51%. The business had revenue of $1.64 billion for the quarter, compared to analyst estimates of $1.65 billion. During the same period in the prior year, the company earned $1.21 EPS. PENN Entertainment’s revenue for the quarter was up 1.2% on a year-over-year basis. Research analysts forecast that PENN Entertainment will post -1.55 EPS for the current year.

Institutional Trading of PENN Entertainment

Hedge funds and other institutional investors have recently made changes to their positions in the business. Driehaus Capital Management LLC bought a new position in PENN Entertainment in the 2nd quarter worth approximately $4,535,000. Janus Henderson Group PLC increased its stake in shares of PENN Entertainment by 244.7% in the 3rd quarter. Janus Henderson Group PLC now owns 249,106 shares of the company’s stock valued at $4,697,000 after buying an additional 176,844 shares during the period. Quantbot Technologies LP raised its position in shares of PENN Entertainment by 84.7% during the third quarter. Quantbot Technologies LP now owns 208,094 shares of the company’s stock worth $3,925,000 after acquiring an additional 95,423 shares during the last quarter. Verition Fund Management LLC lifted its stake in shares of PENN Entertainment by 367.2% during the third quarter. Verition Fund Management LLC now owns 452,988 shares of the company’s stock valued at $8,543,000 after acquiring an additional 356,029 shares during the period. Finally, Public Sector Pension Investment Board bought a new position in PENN Entertainment in the second quarter valued at about $6,363,000. 91.69% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of analysts have issued reports on the company. Wells Fargo & Company raised their target price on PENN Entertainment from $18.00 to $20.00 and gave the company an “equal weight” rating in a report on Thursday, October 17th. Morgan Stanley dropped their target price on shares of PENN Entertainment from $20.00 to $19.00 and set an “equal weight” rating on the stock in a research report on Tuesday, October 22nd. Benchmark reiterated a “hold” rating on shares of PENN Entertainment in a research note on Friday, November 8th. JMP Securities restated a “market perform” rating on shares of PENN Entertainment in a research report on Friday, October 4th. Finally, Truist Financial cut their price objective on shares of PENN Entertainment from $25.00 to $23.00 and set a “buy” rating for the company in a research report on Wednesday, October 23rd. Nine research analysts have rated the stock with a hold rating and nine have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $23.53.

PENN Entertainment Company Profile

PENN Entertainment, Inc, together with its subsidiaries, provides integrated entertainment, sports content, and casino gaming experiences. The company operates through five segments: Northeast, South, West, Midwest, and Interactive. It operates online sports betting in various jurisdictions; and iCasino under Hollywood Casino, L'Auberge, ESPN BET, and theScore Bet Sportsbook and Casino brands.