PENN Entertainment shares fall Tuesday amid mixed market movements

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PENN Entertainment shares fall Tuesday amid mixed market movements
Credit: © Reuters.

NEW YORK - PENN Entertainment Inc. experienced a notable decline in its stock value Tuesday, closing at $23.91 per share, representing a 3.98% drop amidst contrasting market trends. This movement occurred as the broader NASDAQ Composite Index saw an uptick, reaching 14,229.91, while the Dow Jones Industrial Average conversely fell to 36,124.56.

The share price of PENN is a significant dip from its yearly peak of $36.66, recorded on December 13th. The gaming and hospitality industry has been facing headwinds as evidenced by similar losses among competitors. Notably, Las Vegas Sands (NYSE: LVS ) Corp., DraftKings (NASDAQ: DKNG ) Inc., and MGM Resorts (NYSE: MGM ) International also suffered declines in their stock prices, trading at $44.87, $36.44, and $39.13 respectively.

Additionally, trading volume for PENN has shown a slight decrease when compared to its recent average activity. The company's shares traded hands at a volume of 4.6 million against the 50-day average of 5.2 million shares.

The downturn in PENN's stock comes amid a period of volatility within the gaming sector, with several major players experiencing fluctuations in their market valuations.

InvestingPro Insights

As PENN Entertainment Inc. navigates through a challenging market, a closer look at the company's fundamentals, courtesy of InvestingPro, reveals a mixed financial landscape. The Market Cap of PENN stands at $3.57 billion, indicating its mid-cap status in the industry. Despite a negative P/E Ratio of -32.94, indicating investor skepticism about future earnings, the Adjusted P/E Ratio over the last twelve months as of Q3 2023 is a more optimistic 7.34. This could suggest that, when excluding certain items, the company's earnings might be more stable than the traditional P/E ratio implies.

Revenue growth shows a modest increase of 2.57% over the last twelve months as of Q3 2023, yet there was a slight quarterly revenue decline of 0.34% in Q3 2023. This could point to potential headwinds or a plateau in the company's sales growth trajectory. Meanwhile, the Gross Profit Margin stands strong at 45.27%, showcasing the company's ability to maintain profitability on its core operations.

InvestingPro Tips highlight that management has been actively buying back shares, which could be a signal of confidence in the company's value or an attempt to prop up the share price. On the other hand, two analysts have revised their earnings expectations downwards for the upcoming period, and there is a consensus that revenue growth has been slowing down. Moreover, analysts are not expecting the company to be profitable this year, which aligns with the fact that PENN has not been profitable over the last twelve months.

For investors seeking a more in-depth analysis, InvestingPro offers additional insights and metrics. There are a total of 8 InvestingPro Tips available for PENN, which can be accessed by subscribing to InvestingPro. Right now, InvestingPro subscription is on a special Cyber Monday sale with discounts of up to 60%. Plus, use the coupon code sfy23 to get an additional 10% off a 2-year InvestingPro+ subscription and unlock the full potential of financial analytics to inform your investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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