PENN Entertainment to add new directors amid board changes

WYOMISSING, Pa. - PENN Entertainment, Inc. (NASDAQ:PENN), a North American leader in integrated entertainment and gaming with a market capitalization of $2.34 billion, is set to nominate Johnny Hartnett and Carlos Ruisanchez to its Board of Directors. The move follows the upcoming retirement and non-reelection of three current board members. According to InvestingPro analysis, PENN currently operates with significant debt obligations, making board expertise crucial for future strategic decisions.

The company announced that Ron Naples has retired effective immediately, while Barbara Shattuck Kohn and Saul Reibstein will not seek reelection at the upcoming 2025 Annual Meeting of Shareholders. The board, which now consists of eight directors, seven of whom are independent, is preparing for the election of Hartnett and Ruisanchez to fill two Class II director seats. With total debt of $11.25 billion and a debt-to-equity ratio of 3.93, the new board members will face significant financial challenges.

The nominations come after discussions with HG Vora Capital Management, LLC, an investment firm. Despite not reaching an agreement with HG Vora, PENN Entertainment expressed gratitude for their input and anticipates continued engagement with all shareholders.

Hartnett brings a wealth of experience from his tenure at Superbet Group, where he served as CEO and oversaw significant market growth and technological advancements. His previous roles at Flutter Group add to his extensive background in the gaming industry.

Ruisanchez, the CEO of Sorelle Capital and President of Sorelle Hospitality, has a history with Pinnacle Entertainment, Inc., where he held multiple executive roles, including President and CFO, until the company’s sale in 2018. He also has experience from his time as Senior Managing Director at Bear Stearns & Co., Inc.

The Board of PENN Entertainment believes that the expertise of the new nominees in both digital and retail gaming will be crucial as the company focuses on value creation opportunities, especially within its Interactive segment.

PENN operates across 28 jurisdictions in North America, boasting a diverse portfolio of casinos, racetracks, and online sports betting and iCasino offerings. The company emphasizes a strategy centered on leveraging partnerships and its proprietary technology to expand its customer ecosystem.

This article is based on a press release statement from PENN Entertainment, Inc.

In other recent news, PENN Entertainment Inc has been the focus of several analyst evaluations, reflecting varying perspectives on its financial outlook. Mizuho Securities raised its price target for PENN to $25, maintaining an Outperform rating, citing the company’s strong February operations and potential growth from new asset openings. Conversely, Needham adjusted its price target down to $25 from $26 while upholding a Buy rating, following disappointing fourth-quarter earnings and guidance for 2025. The analysts highlighted challenges in PENN’s interactive segment, particularly with the ESPN Bet initiative, but expressed optimism about the partnership with Disney.

Stifel increased its price target to $22, retaining a Hold rating, acknowledging alignment with buy-side expectations for retail and interactive adjusted EBITDAR. The firm’s analysis noted encouraging trends in regional fundamentals and positive disclosures for iCasino, despite higher projected losses for the interactive division. Meanwhile, Raymond James reiterated a Market Perform rating, emphasizing caution due to PENN’s ongoing pursuit of digital profitability.

Benchmark analysts maintained a Hold rating, pointing to mixed fourth-quarter performance, with resilience in the retail segment countering struggles in the interactive division. PENN’s strategic initiatives, including a $350 million share buyback program and expansion plans in Canada, are seen as potential catalysts for future growth. These developments highlight the varied outlooks on PENN’s performance and strategic direction, as the company navigates challenges and opportunities in the gaming and entertainment sector.

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