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Penn Stock Jumps On Boyd Acquisition Interest Report


Penn Entertainment‘s stock jumped nearly 10% Thursday after Reuters reported Boyd is interested in buying its peer.

The report stated Boyd approached Penn to “express interest” in acquiring the regional casino operator that has burned cash trying to get its online casino and sports betting segment to a competitive spot.

PENN closed at $20.04, up 9.93% for the day. The share price spiked as volume did around 3:30 pm Eastern on the Reuters report, ending the day with more than 2.5 times its average volume.

Boyd investors did not love the news as much as Penn’s. BYD dropped 1.99% on the news to $52.68 with more than three times its average volume.

Penn stock sees big moves recently

Thursday was the fourth significant trading day Penn had in just 14 trading days:

  • The first jump came May 31 when the Donerail Group published an open letter to Penn’s chairman and board. The investor suggested selling the company while noting management’s misses in sports betting with the failure of Barstool Sportsbook and early sluggishness of ESPN Bet, which sent the stock up almost 20% on nearly four times average volume.
  • Penn then saw higher-than-average volume again June 13 after Boyd announced it added Michael Hartmeier to its board of directors. Hartmeier brings an extensive history of investment banking focused on the gaming industry to Boyd, which the market saw as a sign the fellow regional casino operator was interested.
  • Penn also rose 6.44% on Monday, along with FanDuel parent Flutter and DraftKings, on the news that the Supreme Court would not hear the case concerning Florida sports betting. The three rose off the potential of revenue-sharing deals in Florida, as well as tribes in other states potentially considering a similar model.

No guarantee Penn will negotiate

Reuters sources said there is no certainty Penn will even negotiate with Boyd.

Barry Jonas of Truist questioned whether Penn would undergo a strategic review in the near-term after a meeting with management. Jonas noted the product roadmap for ESPN Bet, upcoming NFL betting, and volatile interest rates.

A third party would likely be needed to make the deal work because of the number of combined properties the two have in some states.

The post Penn Stock Jumps On Boyd Acquisition Interest Report appeared first on Legal Sports Report.

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