Why Penn National Stock Has Lost Its Luster
This may be an early warning and the risk will be increased slightly over the next couple of days. Given everything that's going on, it does seem at least possible that price is on offer again, and the story underlying PENN means waiting for that price could and should be a profitable trade. Dividend History No dividends found.
Why Penn National Gaming Fell 17.4% in March
Current Price. The stock lies in the middle of a very wide and falling trend in the short term and further fall within the trend is signaled. Broadly speaking, even with valuation low and leverage reduced, PENN still has significant macro exposure. Second, a powerful private equity firm announced it may be entering the online sports betting arena, with a big-name rival brand behind it. Premium Services. Caesars is going to "dramatically curtail its media spend immediately," as Reeg said after Q4.
In Virginia, where I gamble on occasion, promotions across sites clearly have been reduced materially, with Caesars making the most obvious changes.
Obviously, some patrons in recent years have used federal stimulus money for gambling if not directly, then indirectly ; we've seen precisely that activity in the equity markets. At a time when the equity market clearly is jittery, there are real questions about owning any leveraged cyclical right now. Geopolitical concerns, inflation, and higher interest rates all pose potential stumbling blocks, and add to more structural questions about profit margins in the land-based operations.
The promotional environment remains benign as well, as Penn management detailed on the Q4 call. While these headwinds have pushed Penn National Gaming down more than 29% so far this year, I think the stock has a chance to recover and. Image source: Getty Images. Toggle navigation. As management noted on the Q4 call, it seems like older customers have been the most wary of returning to casinos, and those generally slot-focused patrons usually offer the best margins.
Given the current short-term trend, the stock is expected to fall Do note, that if the stock price manages to stay at current levels or higher, our prediction target will start to change positively over the next few days as the conditions for the current predictions will be broken.Penn National Gaming stock drops after. Still, the report wasn't taken well by the sector's investors. The big difference is that Penn uses its casinos and the Barstool digital media empire, including podcasts and the website, to acquire customers, rather than spending massive sums on digital ads and incentives.
Penn National Gaming stock drops after profit misses while revenue beats, as gaming expenses jump
Long-term, PENN probably is a solid pick. That could lead to another deep-pocketed competitor entering the space. Owning PENN right now still means owning a leveraged cyclical at a time when geopolitical and economic risks are high. However, March saw not one but three elements that negatively affected sentiment for Penn's stock.
Sports assets with a sports betting company. Annual Reports kb. But investors need to mind the risks, whether in terms of longer-term margins, the mid-term macro cycle, or short-term trading. I have no business relationship with any company whose stock is mentioned in this article. Those operators flooded the market with advertising and promotions most notably DraftKings to begin and William Hill in the second half of Penn, instead, acquired its Barstool stake and looked to use that brand and its existing fanbase to grow at a slower, steadier and far less expensive rate.
Neither multiple is perhaps quite as attractive as it might appear at first. I have no business relationship with any company whose stock is mentioned in this article. First quarter earnings in late April or early May are unlikely to change the story much on either side of the business. That strategy actually is working: Penn National Gaming, Inc.
Loading price chart. With a number of states having rushed to go live just prior to the Week 1 kickoff, millions of new bettors will be placing their first legal wager with one of these regulated sportsbooks.Founded in by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom legacy dining room set our website, podcasts, books, newspaper column, radio show, and premium investing services.
All other current web features including annual reports, price sensitive announcements, dividends and earnings transcripts are free to use here on our web app. As a result, it does seem like some patience is warranted here. Things didn't get. Those reasonable multiples also are assigned to a land-based business that's growing earnings at a solid clip:. But Barstool certainly is material to valuation.
The good news for Penn and Barstool is why is penn gaming stock down the environment now is going to change dramatically. That strategy actually is working: Penn National Gaming, Inc. This article was written by. But those risks do at least keep the valuation assigned the land-based businesses from seeming necessarily compelling right now.
And the concern for not just Penn, but the industry is whether that expansion is sustainable. Penn National Gaming (PENN) has made a big push into online gambling as more states allow sports betting and online wagering. There is a lot to like with PENN stock, certainly. On its own, I'm not sure that's quite enough to buy Penn National stock.
Not within a year. This is a company that has executed well, grown nicely, and expanded margins. The operating leverage in the casino model means that incrementally higher spend per visit generally drops almost purely to the bottom line, thus boosting margins. These allegations have been around since November, and Penn's stock has tanked since then -- although again, many expensive growth stocks have fallen significantly over that period as well.
More broadly and more simply, PENN is a leveraged cyclical at a time when market and macro concerns simply have to be at the forefront of investment decisions. Caesars Entertainment CZR chief executive officer Tom Reeg, on his company's call, similar said his company saw " nothing to call out " in terms of customer offers. Overlooked Alpha launched April - subscribe at overlookedalpha.
· Some kind of decline makes sense, as investor sentiment. Back those losses out, and the multiple drops to 9x. Social Security Cuts Are on the Table. I am not receiving compensation for it other than from Seeking Alpha. Penn National Gaming, Inc. Q4 earnings presentation. Penn's stock fell a lot after the Apollo-Yahoo! So in an environment where competitors were buying revenue at unsustainable levels, Penn and Barstool still took sports betting share nationally, and grew the iCasino business in key markets Michigan and Pennsylvania.
The Penn National Gaming stock price fell by During the day the stock fluctuated The price has fallen in 6 of the last 10 days and is down by Volume has increased on the last day by 2 million shares but on falling prices. Portnoy has denied the allegations, and filed a defamation lawsuit against Insider, the publication that first published the allegations late last year. Share prices of Penn National are down 60% from their highs and a further drop could be coming.
Real-time trade and investing ideas on Penn National Gaming, Maybe they should crack down on the insider trading casino bitcoin deposit happens each and. Get It Now! At Walletinvestor.
Why Penn National Gaming Shares Are Falling - Benzinga
Penn National Gaming, Inc. Q4 earnings presentation. The online sports gambling industry has seen intense competition, with several entrants spending big on customer acquisition. This is a company that has executed well, grown nicely, and expanded margins. Valuation is in line. Meanwhile, there is a case that the online why is penn gaming stock down business actually is performing much better than simple market share figures would suggest, and that PENN has been an unwarranted victim of the sell-off in the space.
Penn National Gaming holds several negative signals and is within a very wide and falling trend, so we believe it will still perform weakly in the next couple. Vince Martin 7. Finally, two different state regulators announced they were looking into allegations against Barstool Sports founder, large Penn shareholder, and media figure David Portnoy, who became the target of sexual misconduct allegations last year. Owing to leverage Penn's net debt, including capitalized lease expense, is still more than 4x EBITDA and cyclicality, casino operators generally see multiples in this range.
Join Stock Advisor. Still, PENN is also far less leveraged than it was then: the 4. But with the share price roughly one-third lower, and profits growing, the fundamentals do look relatively stronger. Logan paul floyd mayweather vegas odds Price. That seems to leave Penn's online gambling business in tremendous shape going forward.
Not with a billion shares. Our Most Popular Articles. Assuming one is OK investing in gambling stocks and can look past the accusations levied against Portnoy who is a large shareholder, but not CEOPenn has some interesting differentiation versus other online sports gambling stocks. Second, the interactive business here actually seems in far better shape than simple market share figures would suggest.
Vince Martin. That said, we're not that far, either. Finally, March also gave investors a tough month, with high inflation and low consumer sentiment numbers. On March 2, it was reported that private equity firm Apollo Globalwhich purchased Yahoo! Still, news of regulators getting involved likely didn't help sentiment for Penn's stock. Yet short- and mid-term risks are quite high at the moment.
· Some kind of decline makes sense, as investor sentiment. With the competitive playing field now much more level, the company's same strengths still should hold. See all reports. With the competitive playing field now much more level, the company's same strengths still should hold. Of course, that 9x figure doesn't include any value for the online gambling business.
The good news for Penn and Barstool is that the environment now is going to change dramatically.
That seems to leave Penn's online gambling why is penn gaming stock down in tremendous shape going forward. Calculated by Time-Weighted Return since Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. news, although early March wasn't a great period for the stock market, either.
I wrote this article myself, and it expresses my own opinions. But the comparison of to also highlights the biggest question concerning the land-based business. Latest Stock Picks. I am not receiving compensation for it other than from Seeking Alpha. And I'll personally admit I've missed out on gains in the sector due to concerns about margins and valuation both being overblown before the iGaming-driven roller coaster in the space.
Vince Martin 7. In March of last year, Penn entered the S&P Penn is down percent on the year, while the S&P is down less than six percent. A new competitor could be on the horizon. Don't chalk up March's losses to anything Penn did in terms of financial results; after all, the company beat revenue expectations on its fourth-quarter report back in February.
Quantitative Ratios You viewed 3 companies today Ratios will be unlocked again tomorrow or; Unlock these ratios, configure alerts and much more Get the StockLight App. We are working on updating this web app to fully enable Quantitative Ratios. The shares of Penn National Gaming and Draft Kings have touched down to pre-pandemic levels despite all the frenzy associated with sports.The Penn National Gaming stock price is The PENN stock price can go up from According to our analysis, this will not happen.
The U. Scale from the Pinnacle acquisition certainly has helped, but it does seem at the very least like incremental margin expansion is going to be difficult from here. Given those factors, and solid fundamentals, it does seem like from a long-term perspective PENN has sold off too much.
Is Penn stock. After all, Penn's online sports business is lagging in the U. Looking forward, at least in the near-term, geopolitical concerns, higher interest rates and higher gas prices historically a legitimate headwind for land-based operators all pose risks. Learn More. Valuation here at worst is far more reasonable, even if that valuation isn't quite as compelling as it would seem relative to the market. First, rising inflation numbers threaten to take a bite out of consumer spending power and therefore, gambling power.
With the stock down so much and a distinct point of differentiation, Penn may be worth a look, now that it trades at a slotomania vip diamond reasonable valuation. Shares of Penn National Gaming have suffered a sizable decline from a zenith in September.
Valuation is in line. At the same time, it's difficult to see an obvious catalyst in the near term. Do These Things Now to Prepare. Penn National Gaming, Inc. Motley Fool Returns Market-beating stocks from our award-winning analyst team. There's one more issue relative to the risks here: there may well be better options for buying a risky stock well off its highs.
Caesars is going to "dramatically curtail its media spend immediately," as Reeg said after Q4. In Virginia, where I gamble on occasion, promotions across sites clearly have been reduced materially, with Caesars making the most obvious changes. Yeah right. Chart Pattern Recognition Set a candle. Now, to be fair, those worries have been around for a while. Please disable your ad-blocker and refresh.Volume: 6. If you are looking for stocks with good return, Penn National Gaming, Inc.
Penn National Gaming, Inc. Based on our forecasts, a long-term increase is expected, the "PENN" class action lawsuit sapphire resorts price prognosis for is Current Price: Sign up or Log in to use Premium functions.
View Our Services. Amid a sell-off in sports betting stocks, PENN has dropped 64% from its all-time high. A resolution of the crisis in Ukraine would be wonderful for reasons far beyond the performance of U. And, again, as far as the land-based business goes, the story is at worst solid. But Barstool certainly is material to valuation. Many of the formerly-popular growth names in other sectors electric vehicles, SaaS, etc. Stock Advisor. The valuation has become more compelling, however, and one sell-side.
Given that most products offer similar features for the casual bettor, many bettors will likely stick with the first book they signup with for a while. Insiders who bought US$98k worth of Penn National Gaming, Inc. (NASDAQ:PENN) stock in the last year have seen some of their losses recouped. Stock Advisor Returns.
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Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resourcesand more. Things didn't get any better when regulators in Nevada and Indiana said they were looking into sexual misconduct allegations against Portnoy and Barstool. The advantage of lower consumer acquisition costs is highlighted in a big way in Penn's investor presentations. Our Purpose:. Given everything that's going on, it does seem at least possible that price is on offer again, and the story underlying PENN means waiting for that price could and should be a profitable trade.
Macro risks are real, and PENN no doubt underperforms in a bear market, but those risks exist across the market. Today's Change. As a consumer discretionary stockPenn had to weather not one but three big headwinds working against it. If you have an ad-blocker enabled you may be blocked from proceeding. So, the potential for another big-name fantasy sports brand entering the space was not what Penn National shareholders wanted. Sports betting stock investors are most interested to see how sportsbooks perform over the next few weeks in terms of player acquisition, as this data offers the clearest picture as to which brands are willing the advertising battle and gaining valuable market share.
That is an enormous move. Of note, Apollo hasn't settled on a deal, and it may still not happen.
Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. This is hardly a hidden risk - but that's the point. No wonder it declined so much. For this reason, grabbing first time bettors with catchy offers, bonuses, and free bets might prove costly at the start, but the investment is expected to produce in the long run.
I got my Series 7 and 63 back inand watched the dot-com bubble peak and then burst in real time at a small, tech-focused retail brokerage in NYC. Is this happening to you frequently? The worry here, then, is that guidance implies something close to peak margins. I've been contributing to Seeking Alpha and other investment websites sincewith a general though far from rigid focus on value over growth.
Penn's stock fell a lot after the Apollo-Yahoo! Amid a sell-off in sports betting stocks, PENN has dropped 64% from its all-time high. Soaring gasoline prices offer a real risk spiking prices in the middle of the last decade had an impact on casino visitation, at least according to executives at the time; Penn itself called out lower fuel prices in as a tailwind to the business.
That story, however, misses a potential opportunity, for three key reasons. Data by YCharts. So in an environment where competitors were buying revenue at unsustainable levels, Penn and Barstool still took sports betting share nationally, and grew the iCasino business in key markets Michigan and Pennsylvania.
Cost basis and return based on previous market day close. Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of Discounted offers are only available to new members. Meanwhile, there is a case that the online gambling business actually is performing much better than simple market share figures would suggest, and that PENN has been an unwarranted victim of the sell-off in the space. But even that multiple is a bit inflated.
Even with all that negativity, however, there is an attractive story underneath. On its own, I'm not sure that's quite enough to buy Penn National stock. Short-term, it's not hard to believe a better price might come around. Third, Penn has plenty of options going forward to adapt to a quickly changing and normalizing online gambling world, and to augment its impressive land-based portfolio.
See above. Does house of fun pay real money said, the performance is being driven mostly by profit margin expansion. I wrote this article myself, and it expresses my own why is penn gaming stock down. Please report it on our feedback forum.
Those operators flooded the market with advertising and promotions most notably DraftKings to begin and William Hill in the second half of Penn, instead, acquired its Barstool stake and looked to use that brand and its existing fanbase to grow at a slower, steadier and far less expensive rate. That said, we're not that far, either.
It may be difficult to continue margin expansion going forward, but particularly given consolidation over the past few years Penn-Pinnacle, Eldorado-Caesars, etc. The economy can turn south. Bullish or Bearish? booksaveur.com › Industries. Strategic partnerships between sportsbook operators and media outlets have also put sports betting front and center just about anywhere sports content can be consumed, and sports betting terminology is now prevalent in all broadcasts.
Get Penn National Gaming Inc (PENN:NASDAQ) real-time stock quotes, news, price and financial information from CNBC.Penn National Gaming Inc (PENN) Penn National Gaming holds several negative signals and is within a very wide and falling trend, so we believe it will still perform weakly in the next couple. The shares of Penn National Gaming and Draft Kings have touched down to pre-pandemic levels despite all the frenzy associated with sports.
And if people aren't using your online sports betting app as much as expected, investors will soon find out. According to present data Penn National Gaming's PENN shares and potentially its market environment have been in bearish cycle last 12 months if exists.
Penn National Gaming, Inc. The Northeast segment Stocks: Real-time U. International stock quotes are delayed as per exchange requirements.
In May of last year, I argued that PENN stock was a solid buy for online gambling bulls - but raised some concerns in terms of valuation. Get Started Now. View Premium Services.The chart of Penn National Gaming, Inc. Investors were euphoric toward sports betting stocks in the second half of and the first half ofbut results in that space including from Penn itself have disappointed.
Regional operators have been pulling back on promotions for roughly a decade now - and margins across the space have expanded as a result. Of course, there are external risks as well. First, it underestimates the value of Penn's existing land-based operations, which continue to execute exceptionally well.