Penn CEO Jay Snowden Buys $1M Worth of Company Stock

Shares of Penn Entertainment (NASDAQ: PENN) are down almost 20% over the past year, but CEO Jay Snowden is bullish on his employer’s stock.

A recent filing with the Securities and Exchange Commission (SEC) indicates that on September 3, Snowden bought 54,200 shares of the regional casino operator’s equity at a weighted average price of $18.44 per share. That resulted in an overall purchase price of $1 million. The prices he paid ranged from $18.15 to $18.76, according to the regulatory document. Penn closed at $17.67 on Monday, extending a slide that’s seen the stock shed 5.61% over the past month.

Snowden’s purchase of his employer’s stock may signal a vote of confidence in ESPN Bet and Penn’s regional casinos, but the chief executive’s office didn’t comment to that effect. In many cases, corporate insiders buy their company’s stock because they believe it is undervalued and poised to appreciate.

Snowden Buying Penn Dip

Beleaguered Penn investors may well be hoping that Snowden’s recent purchase of the stock is an expression of confidence because the shares have shed nearly a third of their value year to date.

PENN has had a volatile few months, with pressure at the 200-day moving average as well as the $20 region,” according to Schaeffer’s Investment Research. “Despite the red ink in 2024, there’s not a single ‘sell’ rating among the 19 analysts covering the security. Should Penn stock continue to underperform, downgrades could add pressure to the equity.”

The stock has been a battleground this year. In May, investor Donerail Group encouraged the gaming company to abandon its online sports betting ambitions and consider selling itself. That stoked speculation of a transaction in which rival Boyd Gaming (NYSE: BYD) would acquire Penn’s regional casinos and ESPN Bet would be sold to another buyer.

No such deal has materialized as of yet, and Snowden made comments to analysts that indicate Penn isn’t actively shopping itself and that it wants to remain an independent company.

Snowden Buys While Other Gaming Execs Sell

Another reason Snowden’s purchase of Penn stock could be viewed as a positive is because it’s a departure from what’s been seen in the gaming space in 2024. For the most part in 2024, industry executives have been sellers, not buyers, of their companies’ shares.

With the September 3 buys, Snowden now owns now owns a total of 853,045 shares of Penn.