Penn Entertainment Chairman Buys Shares as Stock Slides

David Handler, the chairman of Penn Entertainment, has recently purchased shares of the company as the stock reached a multiyear low.

In a $2 billion deal with Walt Disney's ESPN unit, Penn struck an agreement in early August to have their Barstool Sportsbook app rebranded as ESPN Bet. Despite this major partnership, Penn shareholders were not impressed, and the stock continues to hover near its mid-August low of $22.34, a level last seen in May 2020. As part of the agreement, Penn sold Barstool Sports back to founder David Portnoy for just one dollar, resulting in a charge of up to $850 million.

Handler, who has been a Penn director since 1994, showed confidence in the company by purchasing 20,000 shares for $453,000 between August 22 and 23. The average price per share was $22.65. According to a filing with the Securities and Exchange Commission, Handler now holds 207,072 shares.

This is not his first purchase of Penn stock. In May 2020, Handler participated in a public offering by the company, buying 27,777 shares for $500,000 at $18 per share.

Although Handler has declined to comment on his recent purchase, his actions demonstrate his ongoing faith in Penn Entertainment. Analyst Joseph Greff from J.P. Morgan has maintained a Neutral rating on the stock following the ESPN deal. Greff looks forward to Penn's investor day later in the year and gaining further insight into the company's strategic plans.