NEW YORK, Dec. 28, 2025, 3:14 a.m. ET — Market closed
PENN Entertainment, Inc. (NASDAQ: PENN) heads into the final week of 2025 with its stock trying to stabilize after a choppy stretch—and with Wall Street still debating the company’s post-ESPN digital playbook.
Because U.S. stock markets are closed for the weekend, investors are looking at Friday’s close as the most recent real-time scorecard. PENN finished Friday’s session at $15.10, up 3.14%, outperforming several gaming peers on a day when major indexes were slightly lower. [1]
Where PENN stock left off before the weekend
Friday’s move mattered less for the absolute dollar gain and more for the “tone shift”: the rise snapped a two-day losing streak and came despite a muted broader tape. MarketWatch’s end-of-day recap pegged the Nasdaq Composite down 0.09% and the Dow Jones Industrial Average down 0.04% for the session. [2]
PENN’s Friday volume was reported around 2.7 million shares—below its 50-day average—suggesting the rally wasn’t driven by a massive rush of new money so much as steady buying into a thinner holiday market. [3]
After the bell, trading was essentially flat. Public.com data showed PENN at $15.09 at 6:30 p.m. ET on Dec. 26, down a penny from the regular-session close, with after-hours prices ranging from $15.05 to $15.16. [4]
The last 24–48 hours: what the news flow is actually saying
Company-specific headlines over the last two days have been more about interpretation than new corporate events—a familiar situation for PENN investors in 2025.
1) Jefferies’ David Katz on what’s next for gaming—and why PENN remains a debate.
In a Dec. 27 report highlighted by CDC Gaming, Jefferies analyst David Katz argued that the Las Vegas Strip “remains peakish” and flagged tourism as a potential pressure point for EBITDA growth into 2026. [5]
Katz’s comments also touched PENN directly in a way that fits the stock’s long-running narrative: investors want evidence that digital investment is translating into durable earnings power. As CDC Gaming quoted Katz, “the appropriate investments by Penn Entertainment in its properties are offset by less productive digital investment,” adding that “the Street’s patience…has worn thin” for some land-based operators’ digital spending. [6]
That framing matters because it connects PENN’s day-to-day stock action to a bigger question: is the company’s digital strategy becoming a catalyst—or a valuation drag?
2) MarketBeat flags PENN among “casino stocks to watch” heading into year-end.
A Dec. 27 MarketBeat screen put PENN on a short list alongside DraftKings and MGM Resorts, based on recent dollar trading volume. The piece also included a blunt reminder that “casino stocks” can trade like momentum vehicles—volatile, sentiment-driven, and prone to fast swings. [7]
Even if you disagree with the label, the signal is useful: PENN remains “on the radar” in a sector where flows can shift quickly when the market is thin (like the post-holiday period).
3) AAII’s fresh comparison piece underscores the fundamentals investors keep circling.
A Dec. 28 article from the American Association of Individual Investors (AAII) summarized PENN’s positioning across regional casinos and online betting/iCasino brands, and it put hard numbers on a painful reality: AAII noted the stock was down 23.8% in 2025 (as of Dec. 26), even after a better five-day stretch. [8]
AAII also pointed to PENN’s trailing 12-month revenue ($6.8 billion) and a negative net profit margin (−13.2%), while noting analysts expect adjusted earnings around −$2.00 per share for the current fiscal year. [9]
The strategy backdrop investors still care about: life after ESPN BET
To understand why analysts keep returning to the “digital efficiency” question, you have to look at the company’s late-2025 reset with ESPN.
On Nov. 6, PENN and ESPN announced an early termination of their exclusive U.S. online sports betting agreement, effective Dec. 1, 2025. In that announcement, PENN CEO Jay Snowden said the company planned to “refocus our digital strategy on our growing iCasino business,” while continuing to lean on its regional casino footprint and loyalty ecosystem. [10]
Reuters’ coverage of the breakup added additional texture: payments from PENN to ESPN would stop in Q4 2025, the companies would work together on the transition, and ESPN would retain vested warrants tied to PENN shares while unvested and performance warrants would be forfeited. [11]
That strategic pivot—away from a high-profile media-branded sportsbook deal and toward a more self-owned digital identity—still hangs over PENN’s valuation. It’s also why nearly every “PENN stock” conversation eventually becomes a referendum on whether online sports betting is a necessary customer-acquisition funnel, a costly distraction, or both.
Analyst forecasts: upside targets exist, but conviction is mixed
Wall Street’s “math” on PENN still implies meaningful upside from current levels—yet the ratings mix says investors aren’t fully convinced.
MarketBeat’s consensus snapshot lists a “Hold” consensus rating based on 18 analysts, with an average 12‑month price target of $21.25 (high $26, low $15). At Friday’s close, that implies roughly 40% upside—but the dispersion between the low and high targets is a reminder that forecasts depend heavily on assumptions about digital margins and regional demand. [12]
MarketWatch’s analyst page (a separate dataset) similarly shows targets clustered with a high near $26 and a low near $15, with an average target around the high‑teens. [13]
On the more tactical end of the spectrum, Jefferies recently raised its price target on PENN to $17 from $16 while maintaining a Hold rating, explicitly pointing to Wall Street fatigue with “limited-productivity” digital gaming investments. [14]
Taken together, the message is consistent: forecasts can look attractive on paper, but the market wants proof—quarter by quarter—that PENN can convert its omnichannel footprint into higher-quality earnings.
What investors should know before the next session
With markets reopening Monday morning, PENN holders (and would-be buyers) are likely to focus on four practical items before the opening bell:
First, watch whether Friday’s rebound holds up in early indications. Extended-hours data from Friday was quiet, which can cut two ways: it reduces the odds of a surprise gap caused by late trading—but it also means Monday’s first real liquidity could re-price the stock quickly if sentiment shifts. [15]
Second, track any additional analyst notes tied to 2026 gaming demand. Katz’s “peakish” Strip comment matters less because PENN is a Strip operator (it isn’t) and more because it signals how analysts are modeling the next leg of U.S. gaming growth—and where they think capital spending generates the best returns. That sector-wide lens can spill into PENN’s multiple. [16]
Third, keep the digital narrative in the right frame: efficiency, not just market share. The ESPN breakup and PENN’s iCasino emphasis remain central to the bull/bear split. The company itself has been explicit about refocusing on iCasino and leveraging its omnichannel advantage—language investors will measure against future earnings and cash-flow trends. [17]
Fourth, know the calendar for the next major catalyst: earnings. PENN has not confirmed its next earnings release date, but MarketBeat estimates the next report for Thursday, Feb. 26, 2026, based on past schedules. Whether that date shifts or not, the next earnings cycle is the moment when the Street will demand fresh evidence on costs, digital returns, and regional property performance. [18]
The bottom line
PENN Entertainment stock enters Monday’s session with a small but notable tailwind from Friday’s 3%+ gain—and with a weekend news cycle dominated by analyst framing rather than breaking company events. [19]
The near-term setup is straightforward: if broader markets are steady and the sector rotation stays favorable, PENN has room to extend a bounce. The harder, longer-term setup is the one Jefferies and other analysts keep returning to: investors want PENN’s digital spending to look less like a cost center and more like a repeatable engine for profitable growth. [20]
References
1. www.marketwatch.com, 2. www.marketwatch.com, 3. www.marketwatch.com, 4. public.com, 5. cdcgaming.com, 6. cdcgaming.com, 7. www.marketbeat.com, 8. www.aaii.com, 9. www.aaii.com, 10. espnpressroom.com, 11. www.reuters.com, 12. www.marketbeat.com, 13. www.marketwatch.com, 14. www.tipranks.com, 15. public.com, 16. cdcgaming.com, 17. espnpressroom.com, 18. www.marketbeat.com, 19. www.marketwatch.com, 20. www.tipranks.com
