PENN Entertainment, Inc. PENN shares are trading higher on Friday.
The company’s shareholder, Donerail Group, sent a letter to the company’s Board saying the company could get ‘up to double its current trading price in the event of a sale.’
Donerail Group, in a statement, said the company’s misguided interactive strategy and poor capital allocation have affected shareholder value. As a result, PENN Entertainment is currently trading at a steep discount to its intrinsic value, Donerail added.
The shareholder specifically raised concerns about the Board’s decision to reward CEO Jay Snowden with excessive compensation of nearly $100 million despite significant financial underperformance and stock price declines.
According to Benzinga Pro, PENN stock has lost over 32% in the past year.
Donerail Group also highlighted management’s track record of failed deals, including the headline-generating Barstool Sports sale for $1.
Earlier this month, the company reported worse-than-expected first-quarter financial results.
Total liquidity as of March 31, 2024 was $1.9 billion inclusive of $903.6 million in cash and equivalents. Traditional net debt as of the end of the quarter was $1.7 billion.
Price Action: PENN shares are trading higher by 17.1% to $17.13 at last check Friday.
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