On Friday, U.S. casino operators’ shares surged as Penn National Gaming, Inc (NASDAQ:PENN) aims to split some real estate assets drew attention to a more tax-competent structure that could benefit gaming industry investors.
Penn National’s shares jumped 38% following it declared plans on Thursday to skim off 17 casino properties into a novel firm that will operate as a dividend-paying real estate investment trust.
JP Morgan analyst Joseph Greff stated that this could be a trend within the gaming sector to distribute profits on a more tax efficient basis.
Ameristar Casinos, Inc. (NASDAQ:ASCA) shares were the largest gainers, increased 15.85% at $19.52 on Nasdaq on Friday.
Penn National Gaming, Inc (NASDAQ:PENN) traded at $48.23 by increasing 28.24% with price volatility of 3.03% for a week and 2.55% for a month plus price volatility’s Average True Range for 14 days was 1.83 and its beta stands at 1.38 times.
Stocks after opening at $49.32 hit high price of $50.50 and on last session stock held volume of 11.28 million shares which was unexpectedly higher than its average volume of 956,775 shares.
Short-term as well long term investors always focus on the liquidity of the stocks so for that concern, liquidity measure in recent quarter results of the company was recorded 1.01 as current ratio and on the opponent side the debt to equity ratio was 0.99 and long-term debt to equity ratio remained 0.97. The Company had total cash at hand $217.43 million and a book value per share as $28.78 in the most recent quarter.
While investors who viewing PENN against other stocks with the reference of profit margin that are MGM Resorts International (NYSE:MGM) having profit margin -4.89%, Las Vegas Sands Corp. (NYSE:LVS) with 17.31% profit margin, Carnival Corporation (NYSE:CCL) having 9.17% profit margin and Ameristar Casinos, Inc. (NASDAQ:ASCA) having profit margin of 6.86%.