PENN Entertainment (PENN) Fell on Investor Concerns
Baron Funds, an investment management company, released its “Baron Growth Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund rose 2.71% (Institutional Shares) compared to the primary benchmark the Russell 2000 Growth Index’s 7.05% return and the S&P 500 Index’s 8.74% return. Year-to-date, the fund gained 10.81% trailing the Benchmark by 2.74%. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Growth Fund highlighted stocks like PENN Entertainment, Inc. (NASDAQ:PENN) in the second quarter 2023 investor letter. Headquartered in Wyomissing, Pennsylvania, PENN Entertainment, Inc. (NASDAQ:PENN) provides integrated entertainment, sports content, and casino gaming experiences. On September 5, 2023, PENN Entertainment, Inc. (NASDAQ:PENN) stock closed at $22.43 per share. One-month return of PENN Entertainment, Inc. (NASDAQ:PENN) was -17.23%, and its shares lost 29.53% of their value over the last 52 weeks. PENN Entertainment, Inc. (NASDAQ:PENN) has a market capitalization of $3.388 billion.
Baron Growth Fund made the following comment about PENN Entertainment, Inc. (NASDAQ:PENN) in its Q2 2023 investor letter:
"PENN Entertainment, Inc. (NASDAQ:PENN) operates regional casinos across the U.S. Shares fell on investor concerns that a potential recession would negatively impact visitor spending. While an increase in competition and economic deterioration in certain regional markets is pressuring results, we believe PENN will successfully navigate current headwinds given its strong balance sheet and cash flow profile. We believe PENN will continue generating strong cash flow to invest in its digital gaming opportunity and return cash to shareholders through buybacks. PENN’s stock, which fell to an historical trough EBITDA multiple during the quarter, should revert to its historical average multiple as conditions improve and its digital gaming operation reaches breakeven revenue and cash flow in 2024."
PENN Entertainment, Inc. (NASDAQ:PENN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held PENN Entertainment, Inc. (NASDAQ:PENN) at the end of second quarter which was 22 in the previous quarter.
We discussed PENN Entertainment, Inc. (NASDAQ:PENN) in another article and shared the list of NASDAQ stocks with lowest PE ratios. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
