5 Stocks Reddit is Piling Into Before Earnings

2. Penn National Gaming, Inc. (NASDAQ: PENN)

Number of Hedge Fund Holders: 42
Expected Earnings Date: August 5 (Before Market Open)

Penn National Gaming, Inc. (NASDAQ: PENN) is ranked second on our list of 10 stocks Reddit is piling into before earnings. The company is based in Pennsylvania and owns and manages gambling and racing properties. It will release earnings for the second quarter before the opening of the market on August 5. In earnings results for the first quarter, posted on May 6, the firm reported earnings per share of $0.55, beating market estimates by $0.27. The revenue over the period was $1.2 billion, up 13% year-on-year. 

On July 28, investment advisory Goldman Sachs maintained a Buy rating on Penn National Gaming, Inc. (NASDAQ: PENN) stock but lowered the price target to $124 from $149, underlining that the update represented share shifts and mark-to-market.

At the end of the first quarter of 2021, 42 hedge funds in the database of Insider Monkey held stakes worth 907 million in Penn National Gaming, Inc. (NASDAQ: PENN), up from 41 in the previous quarter worth $1.3 billion.

In its Q1 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Penn National Gaming, Inc. (NASDAQ: PENN) was one of them. Here is what the fund said:

“Shares of regional casino operation Penn National Gaming, Inc. increased in the quarter on strong share gains in the online sports betting and gaming markets in Michigan and the opening of the large Illinois online sports betting market. Strong sequential growth in revenue and sustained margin improvement in its brick and mortar operations also helped boost the share price. We think these positive developments will lead to improvements in the company’s balance sheet and its EBITDA to free cash flow conversion.”