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Penn National Gaming Inc. ($PENN) Stock Forecast: Down 6.3% Today

Morpher AI identified a bearish signal. The stock price may continue to fall based on the momentum of the negative news.

What is Penn National Gaming Inc.?

Penn Entertainment (NASDAQ: PENN) is an integrated gaming provider that offers sports content and casino experiences. The company recently announced layoffs in relation to its sportsbook partnership, ESPN Bet.

Why is Penn National Gaming Inc. going down?

PENN stock is down 6.3% on Jul 19, 2024 14:17

  • The bearish movement in PENN stock today can be attributed to the announcement of layoffs, which has raised concerns among investors about the company's overall business performance.
  • The job cuts, aimed at enhancing operational efficiencies and supporting growth for ESPN Bet, have led to uncertainty about the company's future prospects.
  • Despite CEO Jay Snowden's reassurances about the layoffs being necessary for improvement post-acquisition of theScore, investors seem jittery about the lack of business momentum.
  • The market reaction indicates that investors may be growing impatient with PENN Entertainment's ability to deliver on its strategic initiatives, leading to the decline in stock value.

PENN Price Chart

PENN News

Penn Entertainment Layoffs 2024: What to Know About ESPN Bet Job Cuts

Integrated gaming provider Penn Entertainment (NASDAQ:PENN) — which provides sports content and casino experiences — saw its shares decline conspicuously on Thursday. Earlier in the day, the company announced that it would initiate job cuts to support growth for its sportsbook partnership, ESPN Bet. However, the lack of business momentum has many investors jittery about the broader implications behind the Penn Entertainment layoffs. By the numbers, the pink slips don’t sound like much. According to a CNBC report, the gaming specialist will separate with approximately 100 employees. Penn CEO Jay Snowden stated in an internal email that the workplace transition will enhance operational efficiencies. The head executive deems such efficiencies necessary following Penn’s 2021 acquisition of Canadian media and gaming brand theScore. Per CNBC, Penn employs about 20,000 people. On paper, then, the Penn Entertainment layoffs represent a drop in the bucket. However, the move also implies that despite Penn hitting the ground running per Snowden’s language, the overall business hasn’t substantively improved. And while the job cuts aim to bolster growth for ESPN Bet, some of the pink slips affect the sportsbook. Therefore, the ESPN Bet layoffs have raised alarm bells among investors, who may be getting impatient with the underlying business.

https://investorplace.com/2024/07/penn-entertainment-layoffs-2024-what-to-know-about-espn-bet-job-cuts/

News Article Image Penn Entertainment Layoffs 2024: What to Know About ESPN Bet Job Cuts

Layoffs, New Focus Not Enough to Keep Penn National Gaming (NASDAQ:PENN) Green

Normally, shareholders take news of layoffs better than most anyone else, especially employees. Huge cost savings are generally welcome to the peop…

https://www.tipranks.com/news/layoffs-new-focus-not-enough-to-keep-penn-national-gaming-nasdaqpenn-green

News Article Image Layoffs, New Focus Not Enough to Keep Penn National Gaming (NASDAQ:PENN) Green

What''s Going On With PENN Entertainment Shares After Announcing Layoffs?

PENN Entertainment, Inc. (NASDAQ: PENN ) shares are trading marginally lower on Thursday. Penn Entertainment reportedly plans to lay off approximately 100 employees as it shifts focus to expanding ESPNBet. CEO Jay Snowden communicated in an internal email that these adjustments aim to improve operational efficiencies following the acquisition of theScore in 2021, reported CNBC. The company has a workforce of approximately 20,000 employees. “When PENN acquired theScore, we hit the ground running with the build-out of our proprietary … Full story available on Benzinga.com

https://www.benzinga.com/markets/equities/24/07/39842970/whats-going-on-with-penn-entertainment-shares-after-announcing-layoffs

News Article Image What''s Going On With PENN Entertainment Shares After Announcing Layoffs?

Topgolf Names Erin Chamberlin as Chief Operating Officer - Topgolf Callaway Brands ( NYSE:MODG )

Chamberlin joins Topgolf from PENN Entertainment Inc. DALLAS, July 18, 2024 /PRNewswire/ -- Modern golf entertainment leader Topgolf announced today that Erin Chamberlin has been named its new Chief Operating Officer beginning July 22.

https://www.benzinga.com/pressreleases/24/07/n39837827/topgolf-names-erin-chamberlin-as-chief-operating-officer

News Article Image Topgolf Names Erin Chamberlin as Chief Operating Officer - Topgolf Callaway Brands  ( NYSE:MODG )

Expert Ratings For PENN Entertainment

17 analysts have shared their evaluations of PENN Entertainment ( NASDAQ:PENN ) during the recent three months, expressing a mix of bullish and bearish perspectives. The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and ...

https://markets.businessinsider.com/news/stocks/expert-ratings-for-penn-entertainment-1033551464

News Article Image Expert Ratings For PENN Entertainment

Penn National Gaming Inc. Price History

19.06.2024 - PENN Stock was down 6.3%

  • The bearish movement in PENN stock today can be attributed to the announcement of layoffs, which has raised concerns among investors about the company's overall business performance.
  • The job cuts, aimed at enhancing operational efficiencies and supporting growth for ESPN Bet, have led to uncertainty about the company's future prospects.
  • Despite CEO Jay Snowden's reassurances about the layoffs being necessary for improvement post-acquisition of theScore, investors seem jittery about the lack of business momentum.
  • The market reaction indicates that investors may be growing impatient with PENN Entertainment's ability to deliver on its strategic initiatives, leading to the decline in stock value.

28.05.2024 - PENN Stock was up 5.4%

  • PENN Entertainment's bullish movement is a result of its expanded partnership with Ticketmaster, granting exclusive access to live events and immersive experiences for over 30 million PENN Play members.
  • The timing of this partnership aligns with a growing global demand for live events and loyalty programs that offer unique perks, attracting fans actively seeking such benefits.
  • Through the enhancement of its loyalty rewards program and the provision of distinct advantages via Ticketmaster, PENN Entertainment is well-positioned to meet the escalating need for live event experiences. This strategic move has resonated positively with investors, leading to the bullish market movement.

25.05.2024 - PENN Stock was down 5.5%

  • The bearish movement in PENN stock could be attributed to the news of Boyd Gaming's acquisition offer, which may have raised concerns among investors about the uncertainty and potential challenges associated with the deal.
  • Additionally, the market sentiment revealed through options trading indicated a bullish stance, but the conflicting reports and hurdles in the acquisition process might have caused some investors to adopt a cautious approach, leading to the downward movement in the stock.
  • The overall market conditions, including the uncertainty surrounding the CDK cyberattack impacting car dealerships and the looming student loan forgiveness deadline, may have contributed to the bearish sentiment in PENN stock as investors navigate through various economic uncertainties.

21.05.2024 - PENN Stock was up 5.0%

  • PENN stock saw a significant bullish movement today following reports of a possible acquisition offer from Boyd Gaming.
  • The positive sentiment may also stem from a recent market upgrade by Craig-Hallum, amid favorable conditions in the market.
  • The current CDK cyberattack impacting car dealerships might have indirectly boosted PENN's performance as investors seek opportunities in the gaming sector amidst challenges faced by other industries.
  • Bullish options trading activity surrounding PENN has amplified investor confidence, contributing to the stock's upsurge.

20.05.2024 - PENN Stock was up 6.5%

  • PENN stock experienced a strong bullish movement today, likely driven by the increasing popularity and legalization of online sports betting in various states.
  • The positive sentiment towards PENN may have been influenced by insights on the growth potential of sports betting stocks.
  • Concerns raised by an analyst about a strategic review by the company were overshadowed by the optimistic outlook for the sports betting industry, contributing to the bullish trend in PENN stock.

18.05.2024 - PENN Stock was up 5.4%

  • Despite initial doubts from analysts regarding a strategic review, PENN stock demonstrated a bullish trend, reflecting market confidence in the company's current performance and future prospects.
  • Recent tax increases on online sports betting companies in several states could have indirectly benefited PENN, with traditional casino operators like PENN potentially gaining market share in the online sports gambling industry.
  • The sports wagering sector showed strong growth with a 22% revenue increase in the first quarter of 2024, likely contributing to positive market sentiment towards PENN and other companies expanding into this market.
  • PENN's upward movement may also stem from investors acknowledging the company's strategic positioning and growth potential within the evolving gambling and entertainment industry landscape.

14.05.2024 - PENN Stock was down 5.0%

  • PENN experienced a bearish movement due to the news of states like Illinois increasing taxes on online sports betting companies, including DraftKings and FanDuel.
  • The change in tax policy in Illinois, shifting to a new progressive rate of 20% to 40% for online sports betting companies, likely raised concerns about decreased profitability for companies like PENN.
  • The overall market sentiment towards online sports gambling companies might have turned negative as states aim to increase their revenue from the growing industry, impacting stock prices across the sector.

07.05.2024 - PENN Stock was up 5.1%

  • An activist investor's call for a sale of Penn Entertainment has spurred investor optimism and interest in the stock.
  • The belief that PENN stock could potentially double in value through a sale has attracted high-rolling investors, leading to a surge in bullish options activity.
  • The company's poor capital allocation and misguided business strategy, as highlighted by the activist investor, have likely been factors contributing to the recent lackluster performance of the stock.
  • With a high short interest in PENN stock, a potential sale could not only address shareholder concerns but also help alleviate the pressure from short sellers, further boosting the stock's upward momentum.

04.05.2024 - PENN Stock was down 5.4%

  • An activist investor has called for the sale of Penn Entertainment, citing poor capital allocation and a misguided business strategy as reasons for the drop in value.
  • The investor believes that a potential sale could double PENN stock's current value, which has sparked interest among traders and investors.
  • With high short interest in PENN stock at 22.28% of its float, a sale could help the company recapture shareholder value and address this issue.
  • The push for a sale has led to a significant decline in PENN stock price as investors reassess the company's strategic direction and potential for value creation.

31.04.2024 - PENN Stock was up 16.8%

  • PENN stock saw a significant increase in value today.
  • Investor optimism was driven by a letter from activist investor, Donerail Group, to the company's Board emphasizing potential value creation and the possibility of a sale.
  • Donerail Group's critique of PENN's strategy and capital allocation, coupled with the mention of doubling the company's value through shareholder action, likely contributed to investor enthusiasm and the stock's upward trajectory.
  • The positive news for PENN contrasts with DraftKings (DKNG) facing a decline in stock value following a sports betting tax hike in Illinois, underscoring the favorable sentiment towards PENN compared to its industry peers.

31.04.2024 - PENN Stock was up 5.4%

  • The identification of significant value enhancement possibilities at PENN Entertainment by a noted group likely bolstered investor confidence and interest in the company's stock.
  • Criticisms regarding PENN Entertainment's strategic decisions and management, along with the potential for shareholder advocacy, may have prompted a favorable response from investors who anticipate enhancements in the company's financial performance.
  • Reports of DraftKings (DKNG) encountering difficulties with increased sports betting taxes in Illinois could have indirectly benefited PENN Entertainment, as investors might have redirected their attention to a more promising investment opportunity within the same sector.
  • Today's positive movement in PENN stock could be attributed to renewed positivity and outlook for beneficial transformations within the company, fueled by the potential for enhanced shareholder value and strategic advancements.

29.04.2024 - PENN Stock was down 8.0%

  • PENN stock likely experienced a bearish movement due to DraftKings (DKNG) stock falling 7% after the Illinois Senate passed a sports betting tax hike.
  • The market may be concerned about the potential impact of increased taxes on sports betting operators, leading to a negative sentiment towards gaming stocks like PENN.
  • Investors might be reevaluating the growth prospects and profitability of companies in the sports betting industry, causing a sell-off in PENN shares.

14.04.2024 - PENN Stock was up 5.1%

  • Despite reporting disappointing first-quarter results, PENN shares rose significantly today, indicating a possible shift in investor sentiment.
  • Concerns raised by analysts about the company's losses and market share did not discourage investors as the stock price surged.
  • The bullish movement might be linked to potential positive developments or market expectations, possibly driven by strategic partnerships or upcoming events in the sports betting industry.
  • The contrasting performance of other companies like Texas Instruments and Seritage Growth Properties, which faced downgrades and losses, inadvertently underscored PENN's resilience and appeal to investors.
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Disclaimer
Morpher is not liable for the content of the AI investment insights. Like most GPT-powered tools, these summaries may contain AI hallucinations and inaccurate information. Morpher is not presenting you with any investment advice. All investments involve risk, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs. These summaries do not constitute investment advice.