HG Cora Capital Management wants seats on the PENN Entertainment's board
The shares of PENN Entertainment Inc (NASDAQ:PENN) are up 4.7% to trade at $26.19 at last check, amid C-suite buzz. Per the Wall Street Journal, hedge fund HG Vora Capital Management, which has an 18.5% stake in the casino operator and online-betting firm, is seeking a seat on the company's board. HG Vora calls PENN shares "significantly undervalued" and it has discussed "a range of topics focused on enhancing shareholder value."
On the charts, PENN continues to distance itself from its Oct. 30, three-year bottom at $18.35. But on the other side of the coin, the shares are a ways off their annual high of $36.25 and not even in the same stratosphere as their record peak over $140 from early 2021. The equity is poised to wrap up 2023 with a 11.8% deficit.
Today's rise has sparked a frenzy in the options pits. At last check, 4,246 calls and 4,241 puts have already been exchanged, volume that is six times the average amount. New positions are being sold to open at the most popular position, the weekly 1/5 25-strike put.
Short sellers are exiting their positions, with short interest down 21.7% in the last two reporting periods. However, the 17.02 million shares sold short account for 11.3% of the stock's available float, so if PENN makes a move in 2024, bearish bettors could be caught off guard.