By early afternoon, shares had gained 6.9% to $23.60.
The activist hedge fund also encourage casino owner Pinnacle to spin off some of its assets into a real estate investment trust (REIT).
In response, Pinnacle said in a statement that it "values the views of its shareholders and regularly engages in a dialogue with its shareholders to solicit feedback on its strategy and performance with the goal of enhancing value."
The company added that it will "continue to assess opportunities to thoughtfully grow the Company."
TheStreet Ratings team rates PINNACLE ENTERTAINMENT INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate PINNACLE ENTERTAINMENT INC (PNK) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and increase in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows: