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This PENN Entertainment Insider Reduced Their Stake By 50%

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From what we can see, insiders were net sellers in PENN Entertainment, Inc.’s (NASDAQ:PENN ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At PENN Entertainment

Over the last year, we can see that the biggest insider sale was by the Independent Lead Director, Barbara Z. Kohn, for US$810k worth of shares, at about US$26.62 per share. While we don’t usually like to see insider selling, it’s more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$17.28. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Barbara Z. Kohn.

In the last twelve months insiders purchased 35.56k shares for US$804k. On the other hand they divested 30.45k shares, for US$810k. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NasdaqGS:PENN Insider Trading Volume March 25th 2024

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Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 1.0% of PENN Entertainment shares, worth about US$27m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At PENN Entertainment Tell Us?

The fact that there have been no PENN Entertainment insider transactions recently certainly doesn’t bother us. Still, the insider transactions at PENN Entertainment in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing PENN Entertainment. Every company has risks, and we’ve spotted 1 warning sign for PENN Entertainment you should know about.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

Valuation is complex, but we’re helping make it simple.

Find out whether PENN Entertainment is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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