Palidye Holdings Acquires 1.4 Million Shares in PENN Entertainment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: Fool
- New Investment Position: Palidye Holdings acquired 1.4 million shares of PENN Entertainment in Q1 2026, with a market value of $21.04 million, indicating confidence in the company and enhancing portfolio diversification.
- Stake Proportion Analysis: This acquisition brings Palidye's stake in PENN to 3.9%, highlighting its significance in the 13F assets under management and potentially increasing market attention on PENN.
- Financial Performance Overview: PENN Entertainment's latest report shows a net income of -$957.2 million; however, its retail segment adjusted EBITDAR remains robust at $471.4 million, indicating that the core casino business continues to support overall financial health.
- Digital Business Outlook: While PENN's digital segment still faces challenges with an adjusted EBITDA loss of $10.8 million, the improvement from the previous year suggests that its digital strategy is gradually taking effect, with potential for future profitability.
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Analyst Views on PENN
Wall Street analysts forecast PENN stock price to fall
15 Analyst Rating
9 Buy
5 Hold
1 Sell
Moderate Buy
Current: 19.440
Low
14.15
Averages
19.38
High
26.00
Current: 19.440
Low
14.15
Averages
19.38
High
26.00
About PENN
PENN Entertainment, Inc., together with its subsidiaries, operates in 28 jurisdictions throughout North America, with a portfolio of casinos, racetracks, and online sports betting (OSB) and iCasino offerings. Its focus is on organic cross-selling opportunities, reinforced by its retail casinos, sports media assets and technology, including a proprietary fully integrated digital sports betting and iCasino platform, and an in-house iCasino content studio. Its Northeast segment includes Ameristar East Chicago, Hollywood Casino at Greektown, and Hollywood Casino Bangor. Its South segment includes 1st Jackpot Casino, Ameristar Vicksburg, Boomtown New Orleans, and L’Auberge Baton Rouge. Its West Segment includes Ameristar Black Hawk, Cactus Petes and Horseshu, M Resort Spa Casino and Zia Park Casino. Its Midwest Segment includes Ameristar Council Bluffs, Hollywood Casino Aurora, and River City Casino. Its Interactive segment includes OSB, online casino/iCasino, and social gaming operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Palidye Holdings Acquires 1.4 Million Shares in PENN Entertainment
- New Investment Position: Palidye Holdings acquired 1.4 million shares of PENN Entertainment in Q1 2026, with a market value of $21.04 million, indicating confidence in the company and enhancing portfolio diversification.
- Stake Proportion Analysis: This acquisition brings Palidye's stake in PENN to 3.9%, highlighting its significance in the 13F assets under management and potentially increasing market attention on PENN.
- Financial Performance Overview: PENN Entertainment's latest report shows a net income of -$957.2 million; however, its retail segment adjusted EBITDAR remains robust at $471.4 million, indicating that the core casino business continues to support overall financial health.
- Digital Business Outlook: While PENN's digital segment still faces challenges with an adjusted EBITDA loss of $10.8 million, the improvement from the previous year suggests that its digital strategy is gradually taking effect, with potential for future profitability.
See More
Caesars Entertainment Buyout Sparks Industry Transformation
- Caesars Deal Overview: Caesars Entertainment announced a definitive agreement to be acquired by Fertitta Entertainment for approximately $17.6 billion in cash, providing shareholders with $31 per share, a 49% premium over the unaffected price on February 25, 2026, which is set to reshape the regional casino landscape.
- Red Rock Resorts Potential: Red Rock Resorts stands out as the most likely candidate for a take-private deal due to its premium assets and consistent quarterly adjusted EBITDA exceeding $200 million, with most real estate owned outright, mirroring the acquisition potential seen in Caesars.
- PENN Entertainment Financial Performance: PENN Entertainment reported an adjusted EPS of $0.11 for Q1 2026, surpassing consensus estimates, with adjusted EBITDA rising 53.4% year-over-year to $265.8 million, indicating positive outcomes from its digital turnaround strategy.
- Bally's Strategic Challenges: Bally's has a market cap of approximately $684.8 million but faces long-term debt of $4.41 billion, and despite its sprawling asset base, the future acquisition path remains unclear, with shares down 15.3% year-to-date.
See More
Palidye Holdings Acquires 1.4 Million Shares in PENN Entertainment
- New Position Report: Palidye Holdings (Caymans) Ltd initiated a position of 1.4 million shares in PENN Entertainment during Q1 2026, with an estimated trade size of $19.47 million, indicating confidence in the company's prospects.
- Asset Management Shift: Post-trade, the value of PENN's stake reached $21.04 million, representing 3.9% of Palidye's 13F reportable assets under management, reflecting diversification in its investment portfolio.
- Market Performance Analysis: As of May 14, 2026, PENN's share price stood at $15.83, down 2.2% over the past year, which may affect investor expectations regarding its future growth potential.
- Business Model Assessment: PENN Entertainment's core operations remain focused on regional casinos, and while its digital business is gradually improving, it must maintain stable cash flow to support future investments and development.
See More
UNITE HERE Urges Shareholders to Support PENN Board Declassification Proposal
- Shareholder Voting Call: UNITE HERE urges PENN Entertainment shareholders to vote for the board declassification proposal at the AGM on June 16, 2026, highlighting that despite shareholder support in 2010, the board has yet to implement this change, indicating a disconnect between corporate governance and shareholder expectations.
- Evolving Governance Standards: Recent years have seen an average shareholder support of 77.9% for declassification proposals, with an 86% passage rate, reflecting a growing investor expectation for annual elections, and PENN risks governance challenges if it fails to adapt to this trend.
- Industry Comparison Analysis: While PENN argues that attracting talented directors is hindered by its regulatory environment, competitors like MGM and Caesars maintain annual elections, suggesting that PENN's rationale lacks credibility and fails to clarify why its situation differs from its peers.
- Benefits of Annual Elections: Annual elections enhance board accountability and responsiveness during disruptions in the traditional gaming industry, thereby supporting long-term value creation and aligning with modern governance standards.
See More
Pennsylvania Skill Games Do Not Impact Casino Finances
- Skill Games vs. Casino Revenue: Research by Pace-O-Matic indicates that skill games in Pennsylvania do not affect casino revenues, despite ongoing debates, highlighting that the customer bases for both experiences are distinctly different.
- Casino Revenue Growth: The Pennsylvania Gaming Control Board reports that the state's casino industry generated nearly $6.8 billion in revenue in 2025, indicating market growth despite a decline in foot traffic to brick-and-mortar casinos due to the rise of online gambling.
- Ongoing Policy Discussions: Skill games remain a focal point in legal and policy discussions in Pennsylvania, with courts issuing favorable rulings on the classification of certain skill-based machines, supporting small businesses that benefit from supplemental income generated by these games.
- Industry Outlook: Pace-O-Matic emphasizes the need for clarity and consistency in how skill games are treated under Pennsylvania law to ensure that small businesses are not adversely affected, urging policymakers to consider all perspectives in ongoing discussions.
See More
Real Estate Stocks Attract Investor Interest
- High Yield Appeal: The Vanguard Real Estate Index Fund ETF yields 3.66%, more than triple the S&P 500, attracting numerous investors seeking dividend income, highlighting the investment potential of real estate stocks.
- Strong GLPI Performance: Gaming and Leisure Properties (GLPI) reported adjusted funds from operations (AFFO) slightly exceeding Wall Street estimates and raised its 2026 guidance, indicating that its 6.59% dividend yield is not a yield trap and has growth potential.
- Liquidity Assurance: GLPI concluded the first quarter with $2.4 billion in liquidity, including $275 million in cash, and with spending unlikely to exceed $850 million this year, demonstrating financial stability and reducing the need for capital market financing.
- Regional Market Advantage: GLPI's management prefers the relative stability of regional markets, and while it owns some Las Vegas assets, it is not rushing to expand in that area, reflecting cautious management of investor capital and strategic thinking for long-term growth.
See More
Palidye Holdings Acquires 1.4 Million Shares in PENN Entertainment
- New Investment Position: Palidye Holdings acquired 1.4 million shares of PENN Entertainment in Q1 2026, with a market value of $21.04 million, indicating confidence in the company and enhancing portfolio diversification.
- Stake Proportion Analysis: This acquisition brings Palidye's stake in PENN to 3.9%, highlighting its significance in the 13F assets under management and potentially increasing market attention on PENN.
- Financial Performance Overview: PENN Entertainment's latest report shows a net income of -$957.2 million; however, its retail segment adjusted EBITDAR remains robust at $471.4 million, indicating that the core casino business continues to support overall financial health.
- Digital Business Outlook: While PENN's digital segment still faces challenges with an adjusted EBITDA loss of $10.8 million, the improvement from the previous year suggests that its digital strategy is gradually taking effect, with potential for future profitability.
See More
Caesars Entertainment Buyout Sparks Industry Transformation
- Caesars Deal Overview: Caesars Entertainment announced a definitive agreement to be acquired by Fertitta Entertainment for approximately $17.6 billion in cash, providing shareholders with $31 per share, a 49% premium over the unaffected price on February 25, 2026, which is set to reshape the regional casino landscape.
- Red Rock Resorts Potential: Red Rock Resorts stands out as the most likely candidate for a take-private deal due to its premium assets and consistent quarterly adjusted EBITDA exceeding $200 million, with most real estate owned outright, mirroring the acquisition potential seen in Caesars.
- PENN Entertainment Financial Performance: PENN Entertainment reported an adjusted EPS of $0.11 for Q1 2026, surpassing consensus estimates, with adjusted EBITDA rising 53.4% year-over-year to $265.8 million, indicating positive outcomes from its digital turnaround strategy.
- Bally's Strategic Challenges: Bally's has a market cap of approximately $684.8 million but faces long-term debt of $4.41 billion, and despite its sprawling asset base, the future acquisition path remains unclear, with shares down 15.3% year-to-date.
See More
Palidye Holdings Acquires 1.4 Million Shares in PENN Entertainment
- New Position Report: Palidye Holdings (Caymans) Ltd initiated a position of 1.4 million shares in PENN Entertainment during Q1 2026, with an estimated trade size of $19.47 million, indicating confidence in the company's prospects.
- Asset Management Shift: Post-trade, the value of PENN's stake reached $21.04 million, representing 3.9% of Palidye's 13F reportable assets under management, reflecting diversification in its investment portfolio.
- Market Performance Analysis: As of May 14, 2026, PENN's share price stood at $15.83, down 2.2% over the past year, which may affect investor expectations regarding its future growth potential.
- Business Model Assessment: PENN Entertainment's core operations remain focused on regional casinos, and while its digital business is gradually improving, it must maintain stable cash flow to support future investments and development.
See More
UNITE HERE Urges Shareholders to Support PENN Board Declassification Proposal
- Shareholder Voting Call: UNITE HERE urges PENN Entertainment shareholders to vote for the board declassification proposal at the AGM on June 16, 2026, highlighting that despite shareholder support in 2010, the board has yet to implement this change, indicating a disconnect between corporate governance and shareholder expectations.
- Evolving Governance Standards: Recent years have seen an average shareholder support of 77.9% for declassification proposals, with an 86% passage rate, reflecting a growing investor expectation for annual elections, and PENN risks governance challenges if it fails to adapt to this trend.
- Industry Comparison Analysis: While PENN argues that attracting talented directors is hindered by its regulatory environment, competitors like MGM and Caesars maintain annual elections, suggesting that PENN's rationale lacks credibility and fails to clarify why its situation differs from its peers.
- Benefits of Annual Elections: Annual elections enhance board accountability and responsiveness during disruptions in the traditional gaming industry, thereby supporting long-term value creation and aligning with modern governance standards.
See More
Pennsylvania Skill Games Do Not Impact Casino Finances
- Skill Games vs. Casino Revenue: Research by Pace-O-Matic indicates that skill games in Pennsylvania do not affect casino revenues, despite ongoing debates, highlighting that the customer bases for both experiences are distinctly different.
- Casino Revenue Growth: The Pennsylvania Gaming Control Board reports that the state's casino industry generated nearly $6.8 billion in revenue in 2025, indicating market growth despite a decline in foot traffic to brick-and-mortar casinos due to the rise of online gambling.
- Ongoing Policy Discussions: Skill games remain a focal point in legal and policy discussions in Pennsylvania, with courts issuing favorable rulings on the classification of certain skill-based machines, supporting small businesses that benefit from supplemental income generated by these games.
- Industry Outlook: Pace-O-Matic emphasizes the need for clarity and consistency in how skill games are treated under Pennsylvania law to ensure that small businesses are not adversely affected, urging policymakers to consider all perspectives in ongoing discussions.
See More
Real Estate Stocks Attract Investor Interest
- High Yield Appeal: The Vanguard Real Estate Index Fund ETF yields 3.66%, more than triple the S&P 500, attracting numerous investors seeking dividend income, highlighting the investment potential of real estate stocks.
- Strong GLPI Performance: Gaming and Leisure Properties (GLPI) reported adjusted funds from operations (AFFO) slightly exceeding Wall Street estimates and raised its 2026 guidance, indicating that its 6.59% dividend yield is not a yield trap and has growth potential.
- Liquidity Assurance: GLPI concluded the first quarter with $2.4 billion in liquidity, including $275 million in cash, and with spending unlikely to exceed $850 million this year, demonstrating financial stability and reducing the need for capital market financing.
- Regional Market Advantage: GLPI's management prefers the relative stability of regional markets, and while it owns some Las Vegas assets, it is not rushing to expand in that area, reflecting cautious management of investor capital and strategic thinking for long-term growth.
See More
