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WYOMISSING, Pa. - PENN Entertainment, Inc. (NASDAQ:PENN), whose stock has declined nearly 30% over the past six months amid significant market volatility, has recently addressed its shareholders regarding ongoing disputes with activist investor HG Vora, which has led to a contentious proxy fight. The company’s latest communication comes as a response to an investor presentation by HG Vora that PENN claims contains false allegations. According to InvestingPro data, the company currently trades below its Fair Value, suggesting potential upside opportunity despite recent challenges.
On May 19, 2025, PENN informed shareholders that it would not seek proxies for its White Card against HG Vora’s Gold Card, as both parties recommend the same directors for the board. Despite this, HG Vora continued to push for additional board changes, a move PENN asserts disregards gaming regulatory requirements.
The company has defended its board and management against HG Vora’s accusations, which include claims of management enriching themselves and misusing company assets. PENN emphasizes that these allegations are not supported by the facts available in their public disclosures. The Board of Directors stressed their commitment to regulatory compliance and the trust they’ve built over 30 years in the gaming industry. InvestingPro analysis reveals the company operates with a significant debt burden, with a debt-to-equity ratio of 3.7 and current ratio of 0.74, indicating potential liquidity challenges that may require attention.
PENN Entertainment, a leading provider of integrated entertainment and gaming experiences in North America, operates under brands such as Hollywood Casino, L’Auberge, and ESPN BET. The company prides itself on its diversified portfolio across 28 jurisdictions and its strategic partnerships, including with ESPN.
The company’s focus remains on creating long-term shareholder value and executing its strategic plan, which includes leveraging its sports media assets and proprietary technology platforms.
The press release also contained forward-looking statements regarding the company’s future operations and financial outlook, emphasizing the potential risks and uncertainties that could impact PENN’s financial results and business. While the company reported a loss in the last twelve months, analysts tracked by InvestingPro expect PENN to return to profitability this year, with projected earnings per share of $0.84. For deeper insights into PENN’s financial health and future prospects, investors can access the comprehensive Pro Research Report, which provides detailed analysis of the company’s performance metrics and growth potential.
The information in this article is based on a press release statement from PENN Entertainment, Inc.
In other recent news, PENN Entertainment Inc reported first-quarter revenues of $1.67 billion, falling short of the anticipated $1.70 billion. The company’s adjusted EBITDAR also missed projections, coming in at $329 million against the forecasted $351.5 million. Severe winter weather and the absence of a one-time accounting benefit were cited as factors affecting these results. Despite this, PENN’s Interactive segment showed improvement, with AEBITDA losses decreasing and a goal to break even by the fourth quarter of 2025. In terms of board developments, PENN has nominated two candidates from HG Vora Capital Management, reflecting ongoing engagement with the investment firm. Analyst firms Mizuho and Macquarie both adjusted their price targets for PENN to $24, maintaining an Outperform rating. Mizuho noted an impressive year-over-year EBITDA increase, while Macquarie highlighted development projects and potential for growth in PENN’s digital segment. Additionally, HG Vora Capital Management is seeking a court order to ensure votes for its director nominee at PENN’s upcoming annual meeting, as part of a broader proxy fight.
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