PENN Entertainment, Inc. (NASDAQ: PENN ) is primarily controlled by institutional shareholders who own 78% of the company

key insights

• Institutional large stakes in PENN Entertainment mean they have significant influence over the company’s share price
• The top 7 shareholders hold 52% of the shares
• analyst forecast Along with ownership data helps to have a robust understanding of the business’ prospects

Each investor in PENN Entertainment, Inc. (NASDAQ: PENN) should know the most powerful shareholder group. The group with the largest piece of the pie is the institution with 78% ownership. In other words, the group faces the greatest upside potential (or downside risk).

Because institutions have access to large amounts of capital, their market movements tend to receive a lot of scrutiny from retail or individual investors. Therefore, investing large amounts of institutional money in companies is often seen as a desirable quality.

In the image below, we zoom in on the different ownership groups for PENN Entertainment.

Check out our latest analysis for PENN Entertainment

What does institutional ownership tell us about PENN Entertainment?

Institutional investors often compare their own returns to those of a generally followed index. As such, they often consider buying larger companies included in the relevant benchmark index.

PENN Entertainment already has a body on the share registry. In fact, they own a sizeable stake in the company. This can indicate that the company has some credibility in the investment community. However, it is best not to rely on hypothesis validation from institutional investors. They too, sometimes get it wrong. If multiple institutions change their views on a stock at the same time, you could see the share price drop rapidly. As such, it’s worth checking out PENN Entertainment’s earnings history below. Of course, the future is what really matters.

Since institutional investors own more than half of the shares outstanding, the board may have to pay attention to their preferences. It looks like hedge funds own 9.2% of PENN Entertainment. It’s interesting because hedge funds can be very active and active. Many are looking for medium-term catalysts that could drive shares higher. Our data shows that FMR LLC is the largest shareholder with 13% of the outstanding shares. In contrast, the second and third largest shareholders hold about 9.6% and 9.5% respectively.

We did some more digging and found that 7 of the major shareholders make up about 52% of the register, which means that in addition to the major shareholders, there are also some small shareholders, thus balancing each other’s interests to a certain extent.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiment to see which way the wind is headed. There are a fair number of analysts covering the stock, so it might be useful to know their overall view on the future.

Insider Ownership of PENN Entertainment

The definition of a company insider can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, at least including board members. The management of the company is accountable to the board of directors, which is supposed to represent the interests of shareholders. It is worth noting that sometimes top management are themselves board members.

Most view insider ownership as a positive because it can show that the board is aligned with other shareholders. However, in some cases too much power is concentrated in this group.

Our most recent data indicates that insiders own less than 1% of PENN Entertainment, Inc. shares. It’s a big company, so even a small percentage keeps the board and shareholders aligned. In this case, the insider owns $33 million worth of stock.It’s always good to at least see some interior ownership, but it might be worth checking out If those insiders have been selling.

General public ownership

The public, usually individual investors, owns 12% of PENN Entertainment. While this team doesn’t necessarily call the shots, it certainly has a real impact on how the company is run.

Next step:

While it’s well worth considering the different groups that own a company, there are other, more important factors.realized PENN Entertainment is presenting 1 warning sign in our investment analysis ,You should know…

finally the future is the most important. You can access this free Reports on analyst forecasts for companies.

Note: Figures in this article are calculated using data from the trailing 12 months, which refers to the 12-month period ending on the last day of the month on which the financial statements are dated. This may not be consistent with the annual reported figures for the full year.

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This article by Simply Wall St is general in nature. We use only an unbiased methodology to provide reviews based on historical data and analyst forecasts, 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 into account your objectives or your financial situation. Our goal is to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no positions in any of the stocks mentioned.