Pinnacle Entertainment (PNK) Moving On Heavy Pre-Market Trading
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Pinnacle Entertainment as such a stock due to the following factors:
- PNK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $27.1 million.
- PNK traded 394,122 shares today in the pre-market hours as of 8:47 AM, representing 50.4% of its average daily volume.
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More details on PNK:
Pinnacle Entertainment, Inc. owns, develops, and operates casinos, and related hospitality and entertainment facilities in the United States. Its Midwest segment operates Ameristar Council Bluffs, Ameristar East Chicago, Ameristar Kansas City, Ameristar St. PNK has a PE ratio of 43.3. Currently there are 3 analysts that rate Pinnacle Entertainment a buy, 2 analysts rate it a sell, and 6 rate it a hold.
The average volume for Pinnacle Entertainment has been 891,700 shares per day over the past 30 days. Pinnacle Entertainment has a market cap of $1.6 billion and is part of the services sector and leisure industry. The stock has a beta of 1.60 and a short float of 18.7% with 13.89 days to cover. Shares are up 21.4% year-to-date as of the close of trading on Thursday.
Analysis:
rates Pinnacle Entertainment as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and unimpressive growth in net income.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 7.6%. Since the same quarter one year prior, revenues slightly increased by 3.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- PINNACLE ENTERTAINMENT INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, PINNACLE ENTERTAINMENT INC turned its bottom line around by earning $0.63 versus -$2.28 in the prior year. This year, the market expects an improvement in earnings ($1.43 versus $0.63).
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
- The change in net income from the same quarter one year ago has exceeded that of the Hotels, Restaurants & Leisure industry average, but is less than that of the S&P 500. The net income has decreased by 3.1% when compared to the same quarter one year ago, dropping from $15.01 million to $14.55 million.
- The debt-to-equity ratio is very high at 13.78 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
- You can view the full Pinnacle Entertainment Ratings Report.
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