PENN Entertainment (NASDAQ:PENN) Shares Gap Up on Better-Than-Expected Earnings

PENN Entertainment, Inc. (NASDAQ:PENN)’s share price gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $12.54, but opened at $13.51. PENN Entertainment shares last traded at $13.9330, with a volume of 1,669,298 shares.

The company reported $0.07 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.23) by $0.30. PENN Entertainment had a negative return on equity of 4.59% and a negative net margin of 13.24%.The business had revenue of $1.81 billion for the quarter, compared to the consensus estimate of $1.76 billion. During the same period in the prior year, the business earned ($0.44) earnings per share. The business’s revenue was up 8.2% on a year-over-year basis.

PENN Entertainment News Summary

Here are the key news stories impacting PENN Entertainment this week:

• Positive Sentiment: Q4 results beat expectations — PENN reported $1.81B revenue (+8.2% YoY) and $0.07 adjusted EPS, topping consensus and narrowing losses, which drove investor optimism. PENN Entertainment, Inc. Reports Fourth Quarter Results
• Positive Sentiment: Interactive segment showing clear improvement — rebrand to theScore Bet (Dec 1) and iCasino strength produced positive adjusted EBITDA in December and record Interactive performance that management highlighted as a key driver. PENN (PENN) Q4 2025 Earnings Call Transcript
• Positive Sentiment: Management set explicit 2026 targets — aiming for ~20% Interactive segment EBITDAR growth and ~$3 per share free cash flow while advancing restructuring and cost optimization, giving investors a clearer path to profitability and cash conversion. Penn targets 20% interactive segment EBITDAR growth and $3 per share free cash flow in 2026
• Positive Sentiment: Market reacted to Interactive momentum and ESPN Bet exit — coverage notes and trading activity show the post-ESPN Bet operational improvement was a catalyst for the stock move. Penn Stock Pops As Interactive Posts Positive Results After ESPN Bet Exit
• Neutral Sentiment: Legal/policy uncertainty — CEO pushed for quick resolution of prediction market lawsuits (hopes for Supreme Court), which could materially affect future product opportunities but is timing/ outcome uncertain. PENN CEO Hopes Prediction Market Lawsuits Get to Supreme Court ASAP
• Negative Sentiment: Near-term headwinds remain — management cited weather and market challenges that pressured retail results, PENN still reports negative GAAP margins and carries high leverage, so execution risk and macro/hold variability could reverse gains. PENN Entertainment Inc (PENN) Q4 2025 Earnings Call Highlights

Analyst Ratings Changes

Several analysts have commented on the company. Morgan Stanley lowered their price target on PENN Entertainment from $17.00 to $15.00 and set an “equal weight” rating for the company in a report on Friday, January 16th. Mizuho set a $19.00 target price on shares of PENN Entertainment in a research report on Monday, February 2nd. Needham & Company LLC restated a “hold” rating on shares of PENN Entertainment in a report on Friday, November 7th. Citigroup reaffirmed a “market outperform” rating on shares of PENN Entertainment in a research note on Monday, December 1st. Finally, Jefferies Financial Group reiterated a “hold” rating and issued a $17.00 price target on shares of PENN Entertainment in a report on Wednesday, December 24th. Nine analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $19.67.

Institutional Trading of PENN Entertainment

Several large investors have recently added to or reduced their stakes in PENN. Hill Path Capital LP purchased a new stake in shares of PENN Entertainment in the 2nd quarter valued at approximately $62,595,000. ING Groep NV acquired a new stake in PENN Entertainment during the 3rd quarter valued at $5,790,000. Arrowstreet Capital Limited Partnership purchased a new stake in shares of PENN Entertainment in the second quarter valued at $40,214,000. Connor Clark & Lunn Investment Management Ltd. boosted its position in shares of PENN Entertainment by 711.8% in the second quarter. Connor Clark & Lunn Investment Management Ltd. now owns 119,490 shares of the company’s stock worth $2,135,000 after buying an additional 104,770 shares during the period. Finally, Hudson Bay Capital Management LP grew its holdings in shares of PENN Entertainment by 18.0% during the second quarter. Hudson Bay Capital Management LP now owns 2,029,843 shares of the company’s stock valued at $36,273,000 after buying an additional 308,998 shares in the last quarter. 91.69% of the stock is currently owned by institutional investors and hedge funds.

PENN Entertainment Stock Up 16.7%

The firm has a 50-day moving average of $13.76 and a two-hundred day moving average of $15.95. The stock has a market capitalization of $1.95 billion, a price-to-earnings ratio of -2.31, a price-to-earnings-growth ratio of 0.39 and a beta of 1.39. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 3.65.

About PENN Entertainment

PENN Entertainment, Inc (NASDAQ: PENN) is a leading operator of gaming and racing facilities in the United States. The company’s business activities encompass land-based casinos, pari-mutuel racetracks, off-track wagering, and ancillary amenities such as hotels, restaurants and entertainment venues. In August 2022, the company rebranded from Penn National Gaming to PENN Entertainment to reflect its expanding footprint across digital and traditional segments of the gaming industry.

The company’s portfolio includes well-known properties under the Hollywood Casino and Ameristar Casino brands, located across multiple states including Pennsylvania, Ohio, Missouri and West Virginia.