What smart money is saying about PENN Entertainment, Inc.

Position history

Every position in PENN Entertainment, Inc. on record in the archive was reported in Q3 2026, across 1 fund letter, with no move described.

Fund activity · 1 position

• HoldsBaron Real Estate Fund

  September 2026

  “Top detractors from performance for the quarter Quarter End Market Cap ($B) Contribution to Return (%) Meritage Homes Corporation 4.1 (0.92) PENN Entertainment, Inc. 2.0 (0.78) Toll Brothers, Inc. 12.4 (0.76) AAON, Inc. 6.8 (0.65) Madison Air Solutions Corporation 14.6 (0.65) Meritage Homes Corporation, a U.S. homebuilder, was a detractor in the third quarter, giving back some of its strong second quarter gains when the share price surged 20%. The pullback reflects a broader slowdown in U.S. residential construction, as rising U.S. 10-year Treasury rates have driven mortgage rates higher and caused many prospective buyers to sit on the sidelines. This has weighed on residential-related stocks broadly, Meritage included. While we expect softer industry conditions to pressure revenue and margins in the near term, we believe the stock's depressed valuation—approximately 80% of tangible book value—already prices in much of this pain, and we continue to expect book value to compound over time. Looking further out, we remain confident in the multi-year growth runway for U.S. housing and Meritage's focused strategy of serving first-time homebuyers. For additional detail, please see the "Recent Purchases" section of the Q2 Baron Real Estate shareholder letter. Following strong share price performance in the first six months of 2026 when its shares gained 38% through June 30, 2026, the shares of PENN Entertainment, Inc., a regional casino operator and online gaming company, detracted from performance during the quarter amid broad weakness in gaming stocks. The gaming sector posted weak August and September results as higher rates, geopolitical tensions, and other macro concerns pushed many investors to the sidelines. In our view, PENN's share price disconnected from its fundamentals. Second quarter results showed record retail segment revenue, segment margins expanding to 34.4%, and property adjusted cash flow increased $76 million year-over-year. PENN’s Interactive segment narrowed its loss to $9.5 million in the second quarter, from $62 million a year earlier, after the company exited ESPN BET and refocused on higher-return iCasino and Canadian markets. Management is prioritizing free cash flow and deleveraging, and it recently announced plans to move its New Orleans property onto land. Our conviction in PENN remains intact while we monitor progress.”

  Show more
  Read the letter→
  PENN Entertainment, Inc.