Penn National Gaming Inc. (NASDAQ:PENN): An Opportunity for Fundamental Investors?

Penn National Gaming Inc. (NASDAQ:PENN) Relative Strength Index (RSI) is 70.93, with weekly volatility at 6.39% and ATR at 4.49. The PENN stock’s 52-week price range has touched low of $3.75 and a $76.62 high. Intraday shares traded counted 7.39 million, which was -1.71% lower than its 30-day average trading volume of 7.27M. Its shares traded higher over the last trading session, gaining 8.87% on 12/08/20. The shares fell to a low of $71.40 before closing at $78.77. PENN’s previous close was $72.35 while the outstanding shares total 155.32M. The firm has a beta of 2.76.

Investors have identified the Resorts & Casinos company Penn National Gaming Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $12.40 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Penn National Gaming Inc. (PENN) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For PENN, the company has in raw cash 1.87 billion on their books with 120.1 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 2.19 billion total, with 921.4 million as their total liabilities.

PENN were able to record 123.2 million as free cash flow during the Q3 2020 quarter of the year, this saw their quarterly net cash flow reduce by 1.43 billion. In cash movements, the company had a total of 220.8 million as operating cash flow.

Potential earnings growth for Penn National Gaming Inc. (PENN)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q3 2020 quarter of the year, Penn National Gaming Inc. recorded a total of 1.13 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -19.9% coming in sequential stages and their sales for the Q3 2020 quarter increasing by 72.96%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 528.2 million trying to sell their products during the last quarter, with the result yielding a gross income of 601.5 million. This allows shareholders to hold on to 155.32M with the recently reported earning now reading 1.02 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (0.93 cents a share).

Having a look at the company’s valuation, the company is expected to record 1.59 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on PENN sounds very interesting.

Is the stock of PENN attractive?

In related news, President and CEO, Snowden Jay A sold 183,440 shares of the company’s stock in a transaction that recorded on Dec 01. The sale was performed at an average price of 69.44, for a total value of 12,737,782. As the sale deal closes, the EVP, General Counsel and Sec., Sottosanti Carl now sold 93,134 shares of the company’s stock, valued at 6,735,551. Also, EVP, General Counsel and Sec., Sottosanti Carl sold 63,940 shares of the company’s stock in a deal that was recorded on Oct 26. The shares were price at an average price of 60.23 per share, with a total market value of 3,851,078. Following this completion of acquisition, the SVP and CAO, LaBombard Christine now holds 13,400 shares of the company’s stock, valued at 889,224. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.

10 out of 16 analysts covering the stock have rated it a Buy, while 5 have maintained a Hold recommendation on Penn National Gaming Inc.. 1 analysts has assigned a Sell rating on the PENN stock. The 12-month mean consensus price target for the company’s shares has been set at $74.44.

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