This has been one of the great comeback stories from the coronavirus fallout. The company made a big deal with Barstool Sports earlier this year, looking at it as a way to fuel future growth.
Once Covid-19 swept through the U.S. though, Penn shares were hammered. Investors were selling everything in sight and the company’s liquidity concerns certainly didn’t help matters.
However, Penn National shored up its balance sheet and gave investors confidence in its liquidity moving forward. The reopening of the economy helped as well.
Shares fell 90% from the February high to the March low, then surged back to life. With Thursday’s move, Penn stock is up more than 1,300% from those lows.
That came as Goldman Sachs analysts initiated the stock with a price target of - you guessed it - $60 and assigned a buy rating to Penn National Gaming. Can it get there?
Trading Penn Stock
A week ago, Penn broke out over $40, a level of resistance that dated back to February. Given that the dips continued to get more and more shallow, the odds increased that a breakout was nearing.
There’s been no looking back since the breakout, with shares up 40% in just a few trading days since.
To get to $60, investors will first want to see Penn stock hold the 138.2% extension at $52.71. As long as shares are above that level, it keeps a move to $60 in play. Specifically though, bulls would love to see a move to the 161.8% extension up at $61.08.
From a technical perspective, a move like that would be a real beauty. That said, a move to the downside doesn’t necessarily break the bulls’ grip.
Penn stock isn’t invincible, but a dip could simply allow the bulls to reload and regain momentum. As long as the 10-day moving average acts as support, it’s hard to be a seller of Penn.
On a larger decline, see how Penn shares hold up near $40, the big breakout level.