Shares of Penn Entertainment (NASDAQ:PENN) have declined nearly 20% over the past year, but CEO Jay Snowden remains optimistic about his company’s future. In a recent SEC filing, it was revealed that on September 3, Snowden purchased 54,200 shares of the regional casino operator at an average price of $18.44 per share, totaling an investment of $1 million. The individual prices for the shares ranged from $18.15 to $18.76. Despite his confidence, the stock closed at $17.67 today, continuing a downward trend that has seen it lose 5.61% over the past month.
Snowden’s purchase comes just days before the start of the 2024 NFL season, a crucial period for Penn Entertainment’s ESPN Bet online sports wagering unit. The unit has faced criticism on Wall Street due to its lagging market share and is anticipated to incur significant losses in 2024. While Snowden did not explicitly comment on his reasons for buying the stock, such insider purchases often indicate a belief that the stock is undervalued and poised for growth.
Investors are hoping that Snowden’s buy reflects confidence in ESPN Bet and the company’s regional casinos. Penn Entertainment’s stock has been challenged this year, dropping nearly a third of its value year-to-date. Despite recent struggles, none of the 19 analysts covering the stock have given it a “sell” rating yet. Should the stock continue to underperform, potential downgrades could apply further pressure.
The company’s stock has been the subject of much debate. Earlier this year, investor Donerail Group urged Penn to abandon its online sports betting pursuits and to consider selling itself, sparking rumors that Boyd Gaming (NYSE:BYD) might acquire Penn’s regional casinos, with ESPN Bet possibly being sold to another buyer. However, no such deals have materialized, and Snowden has stated that Penn is not actively seeking a sale and intends to remain independent.
Snowden’s purchase is especially notable given the broader trend in 2024, where most gaming industry executives have been selling their company’s shares rather than buying. This diverges from recent insider sales at two of Penn’s competitors, Boyd Gaming and DraftKings (NASDAQ:DKNG). With his latest acquisition, Snowden now owns 853,045 shares of Penn.
