Penn National Gaming, Inc. (PENN): Analyst Sentiment Positive Or Negative?

Analysts at SunTrust, assumed coverage of Penn National Gaming, Inc. (NASDAQ:PENN) with Buy recommendation, according to their opinion released on October 02. Analysts at Telsey Advisory Group are sticking to their Outperform recommendation. However, on April 27, they lifted target price for these shares to $40 from $33. Analysts at Telsey Advisory Group, made their first call for the stock with a Outperform rating, according to a research note that dated back to April 27.

In the period that ended October 15, 2018, short interest in Penn National Gaming, Inc. (NASDAQ:PENN) stock is on the rise. The 5.46% advance could be an indication that investors and traders expect a deterioration in the stock price, often as a result of a deterioration in the business’ fundamentals. The average analyst recommendations at 2.2 suggests buying these shares. Between September 28 and October 15, the total number of shorted shares amounted to 10.74 million shares. That was 555,832 more shares than the total of 10.19 million shares in the space of prior two weeks, which means more traders or funds betting that the stock will go down. Average daily volume for PENN at the October 15th settlement jumped to 4,147,772, as compared to 938,940 at the September 28th report. That brought days to cover to 2.589938, a 76.13% decrease from the 10.84909 days to cover recorded at the prior short interest data release.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Penn National Gaming, Inc. (NASDAQ:PENN)’s prospects. The earliest insider trade took place on 08/24/2018. Reibstein Saul parted with a total of 6.69 thousand shares of company at average share price of $35. The total for the sales was set at $234.29 thousand. After this transaction, the Director account balance stood at 19.1 thousand shares. The stock lost -30.63 percent since that insider sale. On 08/15/2018, Wilmott Timothy J, CEO, purchased 100 thousand shares at a price per share of $30.85. This added 3.09 million shares to the insider’s fortune and the stock saw a -21.3 percent retreat in value since the news became public. This transaction left 612.87 thousand shares in the CEO account. On 07/31/2018, Director Scaccetti Jane performed a purchase transaction worth $23.54 thousand. This purchase at $31.39 each has added 0.75 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -22.65 percent decrease since the transaction was reported. The insider now is left with 13.93 thousand shares remaining in the account. Wilmott Timothy J, who performs the CEO job, sold 5.99 thousand shares for $217.63 thousand. The disposal occurred on 07/16/2018 was priced at $36.35 per share. The share price plunged -33.2 percent since the reporting date. Wilmott Timothy J now left with a stake of 512.87 thousand PENN stock worth $12.45 million after the insider selling.

Penn National Gaming, Inc. (PENN) is expected to jump by 54.24 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $41-month high price target. This represents a whopping 68.86 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $38, which represents a return potential of 56.51 percent when compared to the closing price of the stock of $24.28 on Wednesday, October 31. The lowest price target for the stock is $31 — slightly more than 27.68 percent from PENN’s current share price.

The shares are currently floating around the first support level of $23.36. Below this, the next support is placed in the zone of $22.45. Till the time, the PENN stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 35.18 on daily chart, which may remain a cause for comfort. If the price breaks below $22.45 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $25.04 mark may result into a pull-back move towards $25.8 level.

PENN shares accumulated 0.96 points or 4.12 percent on Wednesday to $24.28 with a heavy trade volume of 3.519 million shares. After opening the session at $23.7, the shares went as high as $24.885 and as low as $23.21, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $2.36 billion and now has 97.04 million shares outstanding. Penn National Gaming, Inc. (PENN) stock has lost -27.72 percent of market value in 21 trading days.

PENN stock has a trailing 3-year beta of 1.88, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $8.59 a share in the trailing twelve months. The stock’s value has fallen -22.5 percent year to date (YTD) against a decline of -6.94 percent in 12 month’s time. The company’s shares still trade -34.2 percent away from its 1-year high of $36.90 and 10.82 percent up from 52-week low of $21.91. The average consensus rating on the company is 2.2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Penn National Gaming, Inc. (PENN) are trading at a P/E ratio of 2.71 times earnings reported for the past 12 months. The industry PENN operates in has an average P/E of 20.27. Its P/E ratio went as low as 4.01X and as high as 2352.42 over the 5-year span. Further, it is sporting a 0.73 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3.27. 44.6 percent is the gross profit margin for Penn National Gaming, Inc. and operating margin sits at 16.2 percent. Along with this, the net profit margin is 17.1 percent.

PENN will be showing off its Q3 earnings on November 01. Analysts are forecasting revenue to climb 0.2 percent to $808M in the next fiscal quarter, while earnings are seen soaring by nearly -94.66 percent to $0.45 per share. History has shown that shares in Penn National Gaming, Inc. have gone up on 19 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.57 per share, better than the $0.51, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $827M, worse than the $841M analysts expected. Earnings are estimated to increase by 610.4 percent this year, 6.21 percent next year and continue to increase by 0 percent annually for the next 5 years.