Where PENN Entertainment Stands With Analysts
In the last three months, 8 analysts have published ratings on PENN Entertainment (NASDAQ:PENN), offering a diverse range of perspectives from bullish to bearish.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 2 | 4 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 1 | 0 | 1 | 0 | 0 |
| 2M Ago | 0 | 0 | 1 | 0 | 0 |
| 3M Ago | 1 | 1 | 2 | 0 | 0 |
Analysts have recently evaluated PENN Entertainment and provided 12-month price targets. The average target is $26.12, accompanied by a high estimate of $33.00 and a low estimate of $21.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 5.26%.
Understanding Analyst Ratings: A Comprehensive Breakdown
An in-depth analysis of recent analyst actions unveils how financial experts perceive PENN Entertainment. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Felicia Hendrix | Barclays | Lowers | Overweight | $26.00 | $27.00 |
| Dara Mohsenian | Morgan Stanley | Raises | Equal-Weight | $22.00 | $21.00 |
| Ben Chaiken | Mizuho | Announces | Buy | $29.00 | - |
| Dara Mohsenian | Morgan Stanley | Lowers | Equal-Weight | $21.00 | $23.00 |
| Steven Wieczynski | Stifel | Lowers | Hold | $23.00 | $27.00 |
| Barry Jonas | Truist Securities | Lowers | Hold | $23.00 | $27.00 |
| Chad Beynon | Macquarie | Lowers | Outperform | $33.00 | $35.00 |
| Bernie McTernan | Needham | Lowers | Buy | $32.00 | $33.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to PENN Entertainment. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of PENN Entertainment compared to the broader market.
- Price Targets: Gaining insights, analysts provide estimates for the future value of PENN Entertainment's stock. This comparison reveals trends in analysts' expectations over time.
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of PENN Entertainment's market standing. Stay informed and make data-driven decisions with our Ratings Table.
Stay up to date on PENN Entertainment analyst ratings.
Discovering PENN Entertainment: A Closer Look
Penn Entertainment's origins date back to its 1972 racetrack opening in Pennsylvania. Today, Penn operates 43 properties across 20 states and 12 brands (such as Hollywood Casino and Ameristar), with land-based casinos representing 89% of total sales in 2023 (11% was from the interactive segment, which includes sports, iGaming, and media revenue). The retail portfolio generates mid-30% EBITDAR margins and helps position the company to obtain licenses for the digital wagering markets. Additionally, Penn's media assets, theScore and ESPN (starting with its partnership launch Nov. 14, 2023), provide access to sports betting/iGaming technology and clientele, helping it form a leading digital position.
Breaking Down PENN Entertainment's Financial Performance
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Negative Revenue Trend: Examining PENN Entertainment's financials over 3 months reveals challenges. As of 31 December, 2023, the company experienced a decline of approximately -12.0% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Net Margin: PENN Entertainment's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -25.66%, the company may face hurdles in effective cost management.
Return on Equity (ROE): PENN Entertainment's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -10.71%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): PENN Entertainment's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -2.22%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: PENN Entertainment's debt-to-equity ratio is below the industry average. With a ratio of 3.6, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
The Significance of Analyst Ratings Explained
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
