Analyst Activity: Pinnacle Entertainment, Inc (PNK)

The shares of Pinnacle Entertainment, Inc (NASDAQ:PNK) currently has mean rating of 2.43 while 0 analysts have recommended the shares as “BUY”, 4 recommended as “OUTPERFORM” and 3 recommended as “HOLD”. The rating score is on a scale of 1 to 5 where 1 stands for strong buy and 5 stands for sell.

The company’s mean estimate for sales for the current quarter ending Jun 16 is 583.50M by 7 analysts. The means estimate of sales for the year ending Dec-16 is 2.38B by 7 analysts.

The mean price target for the shares of Pinnacle Entertainment, Inc (PNK) is at 15.40 while the highest price target suggested by the analysts is 19.00 and low price target is 12.00. The mean price target is calculated keeping in view the consensus of 5 brokerage firms.

The average estimate of EPS for the current fiscal quarter for Pinnacle Entertainment, Inc (PNK) stands at 0.08 while the EPS for the current year is fixed at 0.70 by 5 analysts.

The next one year’s EPS estimate is set at 0.56 by 5.00 analysts while a year ago the analysts suggested the company’s EPS at 0.70.

In its latest quarter ended on 31^st March 2016, Pinnacle Entertainment, Inc (PNK) reported earnings of $0.83. The posted earnings topped the analyst’s consensus by $0.19 with the surprise factor of 29.70%. In the matter of earnings surprises, the term “Cockroach Effect” is often implied. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.

On May 27, 2016 Pinnacle Entertainment, Inc (PNK) announced that its Board of Directors has authorized a $50 million stock repurchase program.

Anthony Sanfilippo, Chief Executive Officer of Pinnacle, commented, “Our senior leadership and board of directors strongly believe that our free cash flow profile, growth prospects, long-term strategy and ability to execute on our operations represents an attractive investment opportunity.  We are pleased that our strong balance sheet and free cash flow generation allows us to capitalize on this by repurchasing our shares, while at the same time continuing to invest in our existing businesses and pursue external growth opportunities.  The stock repurchase program announced today is a reflection of our conviction in our strategy, the strength of our businesses and our commitment to delivering long-term value for our shareholders.  We intend to fund the share repurchase program with cash flow from operations.”