PENN Should I Buy
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PENN Entertainment Inc is not a strong buy for a beginner, long-term investor at this time. While there are some positive indicators, such as insider buying and a slight pre-market price increase, the overall technical analysis, financial performance, and analyst sentiment suggest caution. The stock's bearish moving averages, recent downgrades in price targets, and significant hedge fund selling indicate a lack of strong upward momentum. Additionally, the company's financials, while showing some YoY improvement, still reflect negative net income and EPS. For a long-term investor, it would be prudent to wait for more favorable conditions or stronger signals of growth.
The MACD is positive and expanding, indicating mild bullish momentum. However, the RSI is neutral at 57.382, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). Key support is at 11.964, and resistance is at 13.755. The stock is currently trading near its resistance level, suggesting limited immediate upside potential.
Insiders are buying, with a 160.19% increase in buying activity over the last month. The MACD indicates mild bullish momentum. Additionally, the company has shown YoY improvement in revenue, net income, and gross margin.
Hedge funds are selling heavily, with a 9489.45% increase in selling activity over the last quarter. Analysts have recently lowered price targets, citing muted fundamentals and decelerating trends in digital gambling. The stock has bearish moving averages, and the financials still reflect negative net income and EPS. No recent congress trading data or strong AI trading signals are present.
In Q3 2025, revenue increased by 4.76% YoY to $1.717 billion. Net income improved significantly YoY but remains negative at -$864.6 million. EPS also improved but is still negative at -6.03. Gross margin increased to 32.12%, up 14.47% YoY. Overall, while there are improvements, the financials remain weak.
Analysts have recently lowered price targets, with Canaccord reducing it to $21, Mizuho to $19, and Morgan Stanley to $15. The sentiment reflects concerns about decelerating trends in digital gambling and muted fundamentals in the gaming sector. The stock has mixed ratings, with some analysts maintaining Buy or Outperform ratings but others holding Equal Weight or Hold ratings.
