Penn National Gaming (NASDAQ:PENN) is sliding in intraday trading on no apparent news. That has PENN stock investors and analysts alike speculating as to the cause, with some even going so far as to blame the personal life controversies of Barstool Sports CEO Dave Portnoy.
Penn National Gaming purchased a stake in Barstool in January of 2020 and the two companies have worked together in a strategic partnership since. Portnoy is perhaps better known as a minor media celebrity than as a CEO; since the onset of the novel coronavirus pandemic, Portnoy has also become a somewhat notorious retail investor with a large internet following.
Portnoy took to social media on Tuesday to address a reported sex tape after others began speculating its release caused the decline in PENN stock. A general lack of recent news around Penn National Gaming helped fuel this theory, though the decline is still within normal price gyrations. Portnoy, who has previously said he has a large stake in PENN, advised investors to buy the dip.
Online gaming stocks took a hit last week on news that New York state might not legalize online sports gambling, with PENN slipping nearly 6%. That news has since been tempered by reports that sports betting is likely to be included in the state budget, though some political and legal work remains to be done.
Penn National Gaming joined the S&P 500 in mid-March and subsequently slipped down to current valuations around $100, as InvestorPlace contributor Bret Kenwell predicted on March 23. Also on March 23, InvestorPlace contributor Tom Kerr called Penn National Gaming “overvalued,” saying in part that “an entry point under $80 would provide a better margin of safety.”
PENN stock opened Tuesday at $106.75 before declining as far as $100.46 in intraday trading, a loss of about 6%. At the time of writing, PENN had slightly rebounded to $103.68 and was down nearly 3% from the open.
On the date of publication, Vivian Medithi did not have (either directly or indirectly) any positions in the securities mentioned in this article.