The exact reason why investors have been taking up Penn National Gaming, Inc. (NASDAQ:PENN) stock at a frenetic pace might seem like a bit of a head-scratcher at the moment, but that’s only if you are buying the stock for the wrong reasons. On 11 February, the shares accumulated 0.13 points or 0.52 percent at $25.18 with a light trade volume of 1.779 million shares. After opening the session at $24.93, the shares went as high as $25.305 and as low as $24.41, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $3.08 billion and now has 122.18 million shares outstanding. Penn National Gaming, Inc. (PENN) stock has gained 2.52 percent of market value in 21 trading days.
PENN stock has a trailing 3-year beta of 1.9, 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 $0.54 a share in the trailing twelve months. The stock’s value has surged 33.72 percent year to date (YTD) against a decline of -7.12 percent in 12 month’s time. The company’s shares still trade -31.76 percent away from its 1-year high of $36.90 and 45.55 percent up from 52-week low of $17.30. The average consensus rating on the company is 2.1, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.
Penn National Gaming, Inc. (PENN) will probably climb 21.33 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $38 price as 12-month high target. This represents a whopping 50.91 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $32, which represents a return potential of 27.08 percent when compared to the closing price of the stock of $25.18 on Monday, February 11. The lowest price target for the stock is $23 — slightly more than -8.66 percent from PENN’s current share price.
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. Investors will get their next glimpse of PENN’s Q1 earnings on April 24. Analysts are forecasting revenue to climb 49.9 percent to $1.15B in the fiscal first quarter, while earnings are seen soaring by nearly -33.33 percent to -$0.38 per share. It earned $0.38 per share, worse than the $0.45, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $1.16B, in line with the $1.16B analysts expected. Earnings are estimated to increase by 610.4 percent this year, 33.86 percent next year and continue to increase by 0 percent annually for the next 5 years.
Let’s take a look at some insider activity at Penn National Gaming, Inc. (NASDAQ:PENN) and see the pattern. The earliest insider trade took place on 12/10/2018. Naples Ronald J gathered a total of 1 thousand shares of company at average share price of $22.72. The total for the purchase was set at $22.72 thousand. After this transaction, the Director account balance stood at 3 thousand shares. The stock grew 10.83 percent since that insider purchase. On 12/04/2018, Naples Ronald J, Director, purchased 0.5 thousand shares at a price per share of $22.13. This added 11.07 thousand shares to the insider’s fortune and the stock saw a 13.78 percent rally in value since the news became public. This transaction left 2 thousand shares in the Director account.
On 11/30/2018, Director Naples Ronald J performed a purchase transaction worth $11.11 thousand. This purchase at $22.21 each has added 0.5 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded 13.37 percent increase since the transaction was reported. The insider now is left with 1.5 thousand shares remaining in the account. Scaccetti Jane, who performs the Director job, bought 1 thousand shares for $21.38 thousand. The acquisition occurred on 11/16/2018 was priced at $21.38 per share. The share price soared 17.77 percent since the reporting date. Scaccetti Jane now left with a stake of 14.93 thousand PENN stock worth $375.81 thousand after the insider buying.
The stock is currently hovering around the first support level of $24.63. Below this, the next support is placed in the zone of $24.07. Till the time, the PENN stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 59.28 on daily chart, which may remain a cause for concern. If the price breaks below $24.07 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $25.52 mark may result into a pull-back move towards $25.86 level.
Shares of Penn National Gaming, Inc. (PENN) are trading at a P/E ratio of 23.69 times earnings reported for the past 12 months. The industry PENN operates in has an average P/E of 16.83. 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 0.96 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3.81. 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 17.2 percent.