What Happened?
Shares of casino, sports betting and entertainment operator PENN Entertainment (NASDAQ: PENN) jumped 2.3% in the afternoon session after JMP Securities reiterated its Market Outperform rating on the company's stock, along with a $25.00 price target.
The firm’s renewed vote of confidence followed a period of strong performance for the stock. This action came as the company's shares had already surged over 100% in the previous six months and were trading near a 52-week high. The maintained price target indicated that the firm saw potential for further upside in the stock price.
After the initial pop the shares cooled down to $19.64, up 2.5% from previous close.
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What Is The Market Telling Us
PENN Entertainment’s shares are very volatile and have had 21 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 5 months ago when the stock gained 8.2% on the news that investor sentiment improved on renewed optimism that the US-China trade conflict might be nearing a resolution.
According to reports, Treasury Secretary Scott Bessent reinforced this positive outlook by describing the trade war as "unsustainable," and emphasized that a potential agreement between the two economic powers "was possible." His comments signaled to markets that both sides might be motivated to seek common ground, raising expectations for reduced tariffs and more stability across markets.
PENN Entertainment is up 2.1% since the beginning of the year, but at $19.64 per share, it is still trading 13.6% below its 52-week high of $22.73 from February 2025. Investors who bought $1,000 worth of PENN Entertainment’s shares 5 years ago would now be looking at an investment worth $284.64.
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