Penn Entertainment (NASDAQ:PENN) stock is a hot topic among traders on Friday alongside news that an activist investor sent a letter to its board of directors.
Investment advisor Donerail Group is behind this letter, and it’s pushing for the company to sell itself. The firm believes that PENN stock could be priced at double its current value in a sale.
Donerail Group is pushing for a sale of Penn Entertainment following lackluster performance. It points toward poor capital allocation and a misguided business strategy as the reasons for this drop in value.
Investors will also keep in mind that the short interest in PENN stock is high at 22.28% of its float. A sale would be a good way for the business to recapture shareholder value while taking care of this issue.
PENN Stock Movement on Friday
The letter from the activist investor has sparked heavy trading of PENN stock today. This has more than 15.6 million shares of the company’s stock changing hands as of this writing. That’s well above its daily average trading volume of about 5.6 million shares.
PENN stock is up 17.8% as of Friday morning but is still down 33.6% since the start of the year.
Investors who want all of the hottest stock market stories today are in the right place!
InvestorPlace is home to all of the latest stock market news that traders need to know about on Friday! Among that it what’s happening with shares of Mullen Automotive (NASDAQ:MULN) and Rivian (NASDAQ:RIVN) stock as well as why the Dow Jones Industrial Average is falling this week. You can catch up on all of that news at the following links!
More Friday Stock Market News
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
