Penn National Gaming Inc. (NASDAQ:PENN) shares traded lower over the last trading session, losing -3.09% on 06/18/21. The shares fell to a low of $73.20 before closing at $73.78. Intraday shares traded counted 5.11 million, which was -4.96% lower than its 30-day average trading volume of 4.87M. PENN’s previous close was $76.13 while the outstanding shares total 155.70M. The firm has a beta of 2.57. The stock’s Relative Strength Index (RSI) is 33.03, with weekly volatility at 4.17% and ATR at 3.60. The PENN stock’s 52-week price range has touched low of $26.96 and a $142.00 high.
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 $11.90 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 2.06 billion on their books with 122.5 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 2.35 billion total, with 947.3 million as their total liabilities.
PENN were able to record 154.8 million as free cash flow during the 07/29/2021 quarter of the year, this saw their quarterly net cash flow reduce by 213.3 million. In cash movements, the company had a total of 180.5 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 07/29/2021 quarter of the year, Penn National Gaming Inc. recorded a total of 1.27 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 12.46% coming in sequential stages and their sales for the 07/29/2021 quarter increasing by 19.41%.
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 650.9 million trying to sell their products during the last quarter, with the result yielding a gross income of 624.0 million. This allows shareholders to hold on to 155.70M with the recently reported earning now reading 0.58 cents per share. This is a figure that compared to analyst’s prediction for their 07/29/2021 (0.55 cents a share).
Having a look at the company’s valuation, the company is expected to record 2.66 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 71,540 shares of the company’s stock in a transaction that recorded on Mar 15. The sale was performed at an average price of 140.61, for a total value of 10,059,330. As the sale deal closes, the Director, SCACCETTI JANE now bought 820 shares of the company’s stock, valued at 99,212. Also, Director, Reibstein Saul sold 10,000 shares of the company’s stock in a deal that was recorded on Feb 08. The shares were price at an average price of 124.98 per share, with a total market value of 1,249,806. Following this completion of acquisition, the Chairman Emeritus, CARLINO PETER M now holds 3,000,000 shares of the company’s stock, valued at 371,400,000. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.10%.
10 out of 16 analysts covering the stock have rated it a Buy, while 4 have maintained a Hold recommendation on Penn National Gaming Inc.. 2 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 $111.00.