NEW YORK, Dec. 27, 2025, 7:21 p.m. ET — Market closed
PENN Entertainment, Inc. (Nasdaq: PENN) heads into the final full trading week of 2025 with investors weighing a Friday rebound against a still-challenging narrative: a post-ESPN BET reset in online sports betting, a renewed focus on iCasino profitability, and an active capital-return plan that could become more visible once a new $750 million buyback authorization begins in 2026.
With U.S. stock markets closed for the weekend, the most actionable datapoint for shareholders is where PENN finished the last regular session—and what catalysts could move the stock when trading reopens Monday.
On Friday, Dec. 26, PENN shares rose 3.14% to close at $15.10, snapping a two-day losing streak. The move came on a generally soft day for major benchmarks, with the Nasdaq Composite down 0.09% and the Dow Jones Industrial Average lower by 0.04%, according to MarketWatch’s session recap. Trading volume in PENN was about 2.7 million shares—below its 50-day average, suggesting the rally didn’t come with peak participation. [1]
The last 48 hours: light headline flow, but a clearer read on sentiment
In the past 24–48 hours, there has been little in the way of new, company-issued news that would typically re-price a stock (such as an earnings update, guidance change, M&A headline, or major regulatory approval). Instead, weekend coverage has centered on two things:
- The stock’s Friday bounce versus peers in gaming and sports betting. [2]
- Sector screens and “stocks to watch” style roundups that continue to group PENN with names like DraftKings and MGM, underscoring that many market participants still treat PENN partly as a “sentiment” and “execution” story rather than a stable cash-flow compounder. [3]
That combination matters because year-end trading can amplify moves in mid-cap names—especially those with elevated short interest—when liquidity thins and positioning becomes the driver.
The bigger backdrop: PENN’s post-ESPN BET pivot is now the central debate
Even though the ESPN BET chapter ended earlier this month, the implications are still fresh in how analysts model PENN and how investors frame the risk/reward.
PENN and ESPN mutually agreed to terminate their exclusive U.S. online sports betting agreement effective Dec. 1, 2025, replacing the ESPN BET branding with theScore Bet in the U.S. [4]
In the joint announcement filed with the SEC, PENN CEO Jay Snowden framed the strategic reset succinctly: “We plan to realign our digital focus on our growing iCasino business.” [5]
ESPN Chairman Jimmy Pitaro, in the same release, emphasized the scale of the funnel ESPN created for PENN—stating ESPN drove “over 2.9 million new users into the PENN ecosystem.” [6]
Reuters also highlighted why these partnerships matter beyond direct betting revenue, quoting eMarketer analyst Ross Benes on the media value of betting tie-ups—an angle investors continue to debate as Disney/ESPN moves forward with DraftKings while PENN refocuses on its owned media brand and iCasino economics. [7]
Why theScore Bet matters to PENN’s stock (and why investors are still skeptical)
PENN’s challenge is not just branding—it’s economics.
In its Q3 2025 results release filed with the SEC, PENN reported that its Interactive segment posted an adjusted EBITDA loss of $76.6 million for the quarter. Management attributed results in part to “customer-friendly hold” and lower-than-expected online sports betting volumes, while pointing to strong momentum in North American iCasino. [8]
That split is key:
- Online sports betting can be a high-cost customer acquisition tool in the U.S., particularly when competing against scaled leaders.
- iCasino (where legal) can offer better unit economics and retention—one reason PENN is leaning harder into the Hollywood-branded iCasino strategy and its omnichannel cross-sell ambitions. [9]
Operationally, theScore Bet is now positioned as PENN’s unified online sports betting brand across the U.S. and Canada, and it is designed to integrate with theScore’s media audience—management cited roughly 4 million monthly active users across North America. [10]
PENN also publicly stated it completed the U.S. rebrand to theScore Bet on Dec. 1, 2025, and the platform is live across multiple jurisdictions. [11]
For equity investors, the core question is whether this shift reduces cash burn and improves lifetime value per customer fast enough to change valuation multiples—and whether management can do it while defending retail margins in a competitive regional casino landscape.
Capital returns are about to get a new chapter: $750 million buyback authorization begins Jan. 1
Another pillar of the thesis is capital allocation.
In an 8-K filing, PENN disclosed that its board approved a new $750 million share repurchase program that commences on Jan. 1, 2026 and runs through Dec. 31, 2028, taking effect after an existing authorization expires at year-end 2025. [12]
In the same Q3 update, PENN reported repurchasing shares during 2025 and indicated it had already met (and slightly exceeded) a stated repurchase goal for the year by early November. [13]
Why this matters now: at a ~$15 share price, buybacks can be more accretive—if executed aggressively and if leverage/liquidity remain comfortable. But buybacks also compete with other capital needs (property development, debt service, and digital investment), which is why investors will watch future filings and earnings calls for pace and constraints.
A regulatory wrinkle investors may have missed: Colorado gaming condition and bylaw changes
One of the more concrete governance developments in late 2025 came via a December SEC filing.
PENN disclosed that the Colorado Limited Gaming Control Commission added a licensing condition tied to suitability reviews for investors who seek to acquire or exercise “control and/or influence” over PENN or its Ameristar subsidiary in Colorado. The company said its board approved bylaw amendments reflecting the condition, particularly around director nominations and shareholder proposals. [14]
For investors, this can be material in a subtle way:
- It may raise the procedural friction for activist campaigns or rapid governance changes, depending on facts and circumstances.
- It adds another layer of gaming-regulatory considerations to shareholder actions that might otherwise be purely corporate-governance disputes.
Even if this does not change day-to-day operations, it can affect how the market prices optionality around board pressure and strategic alternatives.
Wall Street forecasts: upside on paper, but ratings show patience is thin
On the forecasting side, consensus targets still imply meaningful upside from current levels—though investors should treat targets as scenario-dependent, not promises.
MarketBeat’s compilation of analyst forecasts lists an average 12-month price target around $21.25 (with a cited range roughly from $15 to $26, based on the analysts tracked). [15]
Zacks also presents a target range that spans a wide band (low-to-high), reinforcing that forecasts vary significantly with assumptions about digital losses, market share, and the speed of iCasino scaling. [16]
The most recent analyst note highlighted in widely-circulated newswires: Jefferies raised its price target to $17 from $16 while maintaining a Hold rating, and pointed to broad investor fatigue with “limited-productivity” digital gaming investments by land-based operators. [17]
In plain terms: the Street is not demanding that PENN “wins” U.S. sports betting—many analysts appear to be demanding that PENN proves disciplined spending and a credible path to profitability in digital.
Positioning check: short interest remains elevated
PENN also continues to screen as a higher-volatility name, partly due to how it’s positioned in the market.
As of Dec. 15, 2025, MarketBeat data showed short interest around 19.53 million shares—about 15% of the public float—with days-to-cover above 6, indicating that bearish positioning is meaningful relative to average trading volume. [18]
High short interest doesn’t predict direction by itself, but it can increase the speed and magnitude of moves—especially around catalysts like earnings, guidance, regulatory news, or unexpected changes in digital KPIs.
Other risk investors are tracking: patent litigation tied to Hollywood Casino app
A separate, more recent headline risk sits in the legal bucket.
Court docket listings indicate a patent case filed Dec. 12, 2025 in the U.S. District Court for the District of New Jersey naming PENN Entertainment and a subsidiary tied to the Hollywood Casino app. [19]
Bloomberg Law also reported on the suit the same day, describing allegations that the mobile app uses a patented system intended to consolidate multiple betting steps into a single action. [20]
Litigation headlines don’t always move a stock immediately, but they can affect sentiment—particularly for companies trying to prove that digital operations are becoming more efficient and less distraction-heavy.
What investors should know before Monday’s session
With markets closed now, investors watching PENN into Monday, Dec. 29, typically focus on four practical items:
- Where sentiment is after Friday’s bounce
PENN closed at $15.10 on Friday. Its reported 52-week range includes a low near $13.24 and a high near $23.08, which frames the technical debate: is the stock building a base, or is it stuck in a downtrend channel? [21] - Whether 2026 buyback activity becomes a near-term support
The new authorization starts Jan. 1, 2026. Investors will watch for disclosures about the pace, liquidity posture, and any 10b5-1 plan activity. [22] - Digital execution signals—especially iCasino economics
Management has repeatedly anchored the strategy around iCasino growth and omnichannel cross-sell. But the market is likely to demand improving digital losses and clearer unit economics than what was reported in Q3. [23] - The calendar: next earnings is the next “all eyes” event
Consensus calendars currently point to late February 2026 for the next quarterly report (dates can change; investors typically confirm via company announcements and exchange calendars). [24]
Bottom line
PENN Entertainment stock enters the new week with a modest momentum tailwind from Friday, but the market’s focus remains on proof: proof that the post-ESPN BET transition to theScore Bet can reduce digital cash burn, proof that iCasino can carry more of the growth and margin story, and proof that capital returns (including the soon-to-start 2026 buyback authorization) can translate into per-share value creation.
Until those proofs show up in quarterly numbers—particularly Interactive profitability metrics—PENN is likely to keep trading as a catalyst-driven, volatility-prone name where sentiment can swing quickly on relatively limited headline flow. [25]
References
1. www.marketwatch.com, 2. www.marketwatch.com, 3. www.marketbeat.com, 4. www.sec.gov, 5. www.sec.gov, 6. www.sec.gov, 7. www.reuters.com, 8. www.sec.gov, 9. www.sec.gov, 10. www.sec.gov, 11. www.businesswire.com, 12. www.sec.gov, 13. www.sec.gov, 14. www.sec.gov, 15. www.marketbeat.com, 16. www.zacks.com, 17. www.tipranks.com, 18. www.marketbeat.com, 19. dockets.justia.com, 20. news.bloomberglaw.com, 21. www.investing.com, 22. www.sec.gov, 23. www.sec.gov, 24. www.marketbeat.com, 25. www.sec.gov
