Penn National Gaming: 3 Different Insiders Have Purchased Shares During The Last 30 Days

Jun. 2.14 | About: Penn National (PENN)

Summary

3 insiders purchased Penn National Gaming stock within one month.

The stock was sold by no insiders in the month of intensive purchasing.

All 3 of these insiders increased their holdings by more than 10% each.

Penn National Gaming (NASDAQ:PENN) owns and manages gaming and pari-mutuel properties in the United States and Canada.
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Insider buying during the last 30 days

Here is a table of Penn National Gaming's insider activity during the last 30 days.

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
John Jacquemin Director May 8 20,000 133,595
shares
+17.6%
Saul Reibstein CFO May 7 5,000 7,800 shares +178.6%
Timothy Wilmott CEO May 7 50,000 188,623 shares +36.1%
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There have been 75,000 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Penn National Gaming's insider activity by calendar month.

Month Insider buying / shares Insider selling / shares
May 2014 75,000 0
April 2014 0 153,780
March 2014 0 10,673
February 2014 451 35,264
January 2014 0 40,000
December 2013 0 60,000
November 2013 500 71,000
October 2013 0 140,000
September 2013 0 83,392
August 2013 0 80,500
July 2013 0 0
June 2013 0 0
May 2013 0 50,000
April 2013 0 222,678
March 2013 0 90,222
February 2013 500 48,524
January 2013 0 0
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(Note: On November 1, 2013, Penn National Gaming completed a spin-off to its shareholders of Gaming and Leisure Properties (NASDAQ:GLPI))

There have been 76,451 shares purchased and there have been 1,086,033 shares sold by insiders since January 2013. The month of May 2014 has seen the most insider buying.

Financials

Penn National Gaming reported the first-quarter financial results on April 24 with the following highlights:

Revenue $641.1 million
Net income $4.5 million
Cash $287.7 million
Debt $1.1 billion
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The three insiders purchased their shares after these results.

Outlook

Penn National Gaming's guidance is as follows:

Q2/2014 FY2014
Revenue $640.5 million $2,513.8 million
Net income $5.5 million $10.4 million
EPS $0.06 $0.12
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Competition

Penn National Gaming's competitors include Caesars Entertainment Corporation (NASDAQ:CZR), Churchill Downs (NASDAQ:CHDN), and MTR Gaming Group (MNTG). Here is a table comparing these companies.

Company PENN CZR CHDN MNTG
Market Cap: 914.82M 2.63B 1.50B 138.79M
Employees: 17,397 68,000 2,600 2,700
Qtrly Rev Growth (yoy): -0.20 -0.02 0.13 -0.06
Revenue: 2.76B 8.25B 798.76M 489.89M
Gross Margin: 0.43 0.49 0.25 0.36
EBITDA: 513.91M 1.64B 151.60M 94.94M
Operating Margin: 0.09 0.11 0.12 0.13
Net Income: -843.17M -3.11B 52.40M -14.56M
EPS: -10.94 -23.70 2.98 -0.51
P/E: N/A N/A 28.92 N/A
PEG (5 yr expected): 4.45 N/A 1.45 N/A
P/S: 0.33 0.33 1.87 0.29
P/B: 1.15 N/A 2.12 988.00
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Penn National Gaming has the lowest P/B ratio among these four companies.

Here is a table of these competitors' insider activities this year.

Company Insider buying / shares Insider selling / shares
CZR 0 0
CHDN 0 17,783
MNTG 0 9,807
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Only Penn National Gaming has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying Penn National Gaming, and there have not been any insiders selling Penn National Gaming during the last 30 days. All three of these insiders increased their holdings by more than 10% each. Penn National Gaming has an insider ownership of 13.28%.

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(Source: Investor presentation)

The three insiders purchased their shares at prices ranging from $10.53 to $10.74. I believe Penn National Gaming could be a good pick below $10.74 based on the intensive insider buying.

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(Source: Investor presentation)

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in PENN over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.