Shares of casino and sports betting services provider PENN Entertainment (NASDAQ:PENN) are in focus today after a Wall Street Journal report indicated that a major shareholder in the company is seeking Board seats.
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Reportedly, HG Vora Capital management is in discussions with the company to place directors on its Board. The hedge fund owns an 18.5% interest in PENN. The WSJ noted that if the talks fail to bear fruits, HG Vora could take the route of a proxy battle.
The company’s window for director nominations is between January 8 and February 7. Since its March 2021 high of about $130, PENN’s share price has plummeted to the current $25 level. Over the past two years, while its top line has ticked up, the company’s bottom line has seen a contraction.
Further, after spending nearly $550 million on Barstool Sports in 2020, the company rebranded its Barstool sportsbook to ESPN Bet. Citing PENN’s poor M&A track record and share price undervaluation, HG Vora is now looking to turn the company’s fortunes around.
What is the Future Price of PENN Stock?
Overall, the Street has a Moderate Buy consensus rating on PENN Entertainment, and the average PENN price target of $28.45 implies a modest 13.75% potential upside in the stock.
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