Penn Entertainment CEO Makes $1 Million Stock Purchase Amid Market Decline
Despite the drop in Penn Entertainment’s stock value over the past year, CEO Jay Snowden has shown confidence in the company’s future by purchasing $1 million worth of shares.
CEO’s Vote of Confidence?
A recent filing with the Securities and Exchange Commission (SEC) revealed that on September 3, Snowden acquired 54,200 shares at an average price of $18.44 per share. The stock has since closed at $17.67, marking a continuation of its downward trend, with a loss of 5.61% in the past month.
While Snowden has not commented directly on the purchase, such moves by corporate insiders are often interpreted as a signal that the executive believes the stock is undervalued and poised for recovery.
Timing Around NFL Season and ESPN Bet
The timing of Snowden’s purchase is notable, as it occurred just before the kickoff of the 2024 NFL season. Analysts view this period as crucial for Penn’s ESPN Bet online sports wagering platform, which has struggled to gain market share and is expected to post significant losses this year.
Snowden’s stock acquisition could be seen as a vote of confidence in both the ESPN Bet venture and Penn’s broader portfolio of regional casinos, though no official statement has been made linking the two.
Penn Entertainment’s stock has had a turbulent year, with its value down by nearly 20% over the past 12 months and nearly a third since the beginning of 2024.
Despite this volatility, none of the 19 analysts covering the stock have issued a “sell” rating. However, continued underperformance could prompt downgrades, which would likely add further pressure on the stock.
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