If You Had Invested $1,000 In PENN Entertainment At The Covid-19 Pandemic Low, You Would Have This Much Now – PENN Entertainment (NASDAQ:PENN)

Investors who bought stocks during the Covid-19 market crash of 2020 have generally made some big gains over the past two years. But there’s no question that some big-name stocks have outperformed others since the pandemic bottomed out.

Penn’s bumpy ride: One company that has been among the top performers over the past two years has been a casino and online gaming operator PENN Entertainment Inc PENN.

The casino industry was one of the hardest hit industries during the early stages of the COVID-19 pandemic in 2020. Luckily for Penn investors, the company made a timely investment in Barstool Sports in January 2020. The Barstool deal brought Penn a 36% ownership interest in Barstool for $163 million, and Penn plans to exercise his option to acquire the remainder of Barstool in 2023.

See also: Dave Portnoy – My fortune is tied to a stock, other stuff is “all fun and games”

As casinos shut down during the pandemic, Penn took aggressive steps to stave off financial hardship. In April 2020, Penn sold the properties at his Tropicana Las Vegas casino Play and Leisure Real Estate Inc GLPI for $337.5 million in rental loans.

Penn began launching mobile sports betting app Barstool Sportsbook in September 2020 in Pennsylvania alongside the influential Barstool founder David Portnoy Leading online marketing efforts. The Barstool Sportsbook app has since expanded to New Jersey, Michigan, Illinois, Indiana, Colorado, Virginia, Tennessee, Arizona, Iowa, West Virginia, Louisiana and Kansas.

At the beginning of 2020, Penn shares were trading at just $25.97. In early March, the stock rose to $29.70 as news of the spread of the coronavirus in China raised concerns about a US pandemic.

As the market collapsed during the outbreak of COVID-19 in the US, Penn shares fell as low as $3.75 on March 18, 2020 at the height of pandemic fears.

As the market rallied in late March 2020, Penn began to rally as well. In fact, by June, the stock was back to reaching pre-pandemic highs of over $30.

Penn hit $50 in August and $80 in December as the Barstool Sportsbook app continued to expand and casinos across the country reopened.

Related Link: If you had invested $1,000 in the Invesco QQQ ETF at its COVID-19 pandemic low, here is how much you would have now

Penn in 2022, beyond: Penn shares hit their post-pandemic high of $142 in March 2021 before spending the next year and a half steadily drifting lower. MGM Resorts MGM, Draftkings Inc DKNG and Flutter Entmt ADR PDYPY Subsidiary FanDuel quickly became the market leader in the US iGaming market.

In July 2021, Penn took another risk by acquiring Score Media and Gaming Inc. for $2 billion, but the deal didn’t stop the bleeding in Penn’s stock.

To make matters worse, the controversial Portnoy was accused of sexual misconduct by Business Insider in November 2021, the same day Penn reported a large third-quarter earnings loss. In response, Portnoy provided evidence that Business Insider’s allegations against him were false. Unfortunately, Penn stock continued to fall as low as $25.49 in September 2022 before recovering to $35.41 today.

Still, investors who bought Penn on the day it hit its 2020 pandemic low and stuck with it have reaped a tremendous return on their investment. In fact, $1,000 of Penn stock purchased on March 18, 2020 would be worth approximately $7,993 today.

Looking ahead, analysts expect Penn stock to continue rising over the next 12 months. The average target price of the 18 analysts covering the stock is $45.50, which suggests a 28.7% increase from current levels.

Next: If you had invested $1,000 in Sony stock at its COVID-19 pandemic low, here’s how much you would have now

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