Vora Nominees to Penn Board Viable, Says Analyst
Posted on: January 31, 2025, 01:06h.
Last updated on: January 31, 2025, 01:18h.
Earlier this week, hedge fund HG Vora nominated three candidates to Penn Entertainment’s (NASDAQ: PENN) board of directors, signaling it’s ready for a proxy fight with the regional casino operator. Those nominees are viewed as valid in the eyes of at least one analyst.

In a note to clients on Friday, Jefferies Equity Research analyst David Katz talked about William Clifford, Johnny Hartnett, and Carlos Ruisanchez — Vora’s candidates for director roles at Penn — noting each has relevant gaming experience that could be beneficial to their candidacies. Clifford previously served as chief financial officer (CFO) of Penn.
(Clifford’s time at Penn was) a productive period for PENN in terms of its growth through acquisitions and green-field developments, and ultimately its share price, which rose ~8.5x,” observed Katz.
Most recently, Clifford was CFO of Gaming and Leisure Properties (NASDAQ: GLPI), the casino landlord that was spun out of Penn in 2013. Today, that company owns the bulk of the real estate on which Penn’s casinos reside.
Vora Candidates Have ‘Relevant Credentials’
Ruisanchez completed an extended stint with Pinnacle Entertainment, which was acquired by Penn in 2018. He’s viewed as one of the primary architects of the gaming company’s move to acquire the Ameristar casinos.
Of the three nominees, Hartnett is the one lacking prior ties to Penn, but that doesn’t hurt his candidacy. He’s been a nonexecutive director at Superbet Group for five years and before that, he was with Flutter Entertainment (NYSE: FLUT) for 20+ years.
Should Hartnett win a board seat, his time at Flutter could be beneficial to Penn because one of the issues Vora is focusing on is the operator’s missteps in online sports wagering. All three nominees have “relevant credentials,” according to Katz.
“We believe the [nominees] in total should be considered modest positives in terms of the implications of their profiles,” noted the analyst. “The individuals involved bring specific experience to PENN, regional gaming, and digital gaming, which should provide an upward bias on the shares which is consistent with our stance.”
What’s Next in Penn/Vora Fight
Late Wednesday, Penn confirmed it received Vora’s request to nominate the three aforementioned candidates, but the gaming company didn’t comment much beyond that except to note that it hasn’t yet scheduled its 2025 annual meeting.
That would be the event at which some of the existing directors would stand for reelection and investors would vote for or against the Vora nominees.
How long the saga lasts remains to be seen, but it’s clear Vora isn’t a fan of Penn’s board. The activist investor bashed the board, saying it paved the way for dismal share price performance at the hands of sports betting errors while overpaying CEO Jay Snowden.
Penn shares, which have sagged over the past four years, are up slightly this week.
“Overall, the increased focus on the strategic priorities could align more closely with stock performance as the process plays out over time,” concluded Katz.
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