PENN receives nod from Glass Lewis for board nominees

WYOMISSING, Pa. - PENN Entertainment, Inc. (NASDAQ: PENN), a leading North American entertainment and casino operator, has received a favorable recommendation from Glass, Lewis & Co. for its two board nominees, Johnny Hartnett and Carlos Ruisanchez. The independent proxy advisory firm’s endorsement comes ahead of the company’s Annual Meeting scheduled for June 17, 2025.

Glass Lewis has advised shareholders to vote for Hartnett and Ruisanchez, citing their potential to enhance board oversight of PENN’s capital allocation and digital strategy. The report, however, raised questions about the distinct value that the third nominee, William Clifford, would bring to the board, given the overlap with existing or anticipated board members’ profiles.

The company’s recent decision not to support Clifford’s nomination, despite backing the other two nominees, was also noted. Glass Lewis did not find evidence suggesting the board acted in bad faith or with the intent of entrenchment when evaluating HG Vora’s nominees, including Clifford. The report acknowledged the challenges faced by the gaming industry’s regulatory environment, which delayed HG Vora’s ability to submit nominations.

PENN expressed satisfaction with Glass Lewis’s recognition of the board’s comprehensive review of all nominees and its responsiveness to shareholder feedback. The company reiterated its commitment to shareholder interests and advancing its strategy with a strengthened board post-election. Following the election, 75% of PENN’s directors will have been appointed since 2019.

PENN Entertainment, Inc. operates in 28 jurisdictions across North America, offering a mix of casino gaming, sports content, and entertainment experiences. The company has leveraged partnerships, including with ESPN, and owns the digital sports media brand theScore, positioning itself strategically in the market. InvestingPro analysis reveals the company generated $6.6 billion in revenue over the last twelve months, with a 40% gross profit margin, though it operates with a significant debt burden of $11 billion. Get access to 8 more exclusive InvestingPro Tips and comprehensive financial analysis through the Pro Research Report.

The press release also contains forward-looking statements regarding PENN’s future operations and financial performance, reflecting the company’s expectations and assumptions about its growth strategy and competitive position. While the company wasn’t profitable in the last twelve months, analysts tracked by InvestingPro expect positive earnings of $0.84 per share this year, with price targets ranging from $16 to $30. These forward-looking statements are subject to risks, uncertainties, and changes in circumstances that could impact the company’s actual results.

The information in this article is based on a press release statement from PENN Entertainment, Inc.

In other recent news, PENN Entertainment, Inc. has announced the early opening of its new Hollywood Casino Joliet on August 11, pending regulatory approvals. This launch, nearly six months ahead of schedule, represents a significant milestone for PENN’s expansion in the Chicagoland area. The new facility will feature approximately 1,000 slot machines, 43 live table games, and an ESPN BET sportsbook, among other amenities. In related developments, PENN is facing a proxy battle with activist investor HG Vora, who is pushing for board changes, including the nomination of William Clifford, Johnny Hartnett, and Carlos Ruisanchez. Egan-Jones Proxy Services supports HG Vora’s nominees, citing concerns over PENN’s financial performance and governance practices. Meanwhile, PENN has endorsed Hartnett and Ruisanchez for its board, following a favorable report by Institutional Shareholder Services. The company has also addressed shareholder concerns, defending its board against allegations from HG Vora. As the annual meeting approaches, HG Vora has taken legal action to ensure votes for its nominees are counted, highlighting a contentious period for PENN’s governance.

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