Is Portnoy's Penn National Gaming (PENN) Preparing for a Stock Split?
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Penn National Gaming (NASDAQ: PENN) shares are 1.1% higher in part on speculation of an upcoming stock split after the company's preliminary proxy yesterday indicated the company is asking shareholders to approve an increase in the number of authorized shares of common stock from 200,000,000 to 400,000,000. The company currently has approximately 156.5 million shares outstanding.
"With its stock price in triple digits and 44m shares currently available, PENN has plenty of firepower to raise money in a secondary if need be," Gordon Haskett analyst Don Bilson comments. "It also has capacity at the moment to accommodate its Long-Term Incentive Plan. Hence, it has no NEED to boost its share authorization right now. What is more likely is it is thinking about a 2-1 split..."
Also, Bilson said investors should not assume that a stock split is a non-event given the fact that "the Barstool day-trading crowd is neck deep in this stock", led by Dave Portnoy (@stoolpresidente).
Bilson quoted a comment from Portnoy in August on stock splits... "Why do I like when stocks split? Because you get double the stock. Two stocks are better than one especially when they always go up."
Penn will be holding its annual meeting on June 9, 2021, where investors can vote for the extra shares.
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