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Short Sellers Have Lost Nearly $1.3B On DraftKings, Penn National

PENN) shares are up another 23.5% in the past week in anticipation of Friday’s launch of the new Barstool Sportsbook app.” data-reactid=”19″ type=”text”>Penn National Gaming, Inc (NASDAQ: PENN) shares are up another 23.5% in the past week in anticipation of Friday’s launch of the new Barstool Sportsbook app.

DKNG) have been on fire in 2020, and S3 Partners analyst Ihor Dusaniwsky said Thursday that heavy losses are driving short sellers to the sidelines.” data-reactid=”20″ type=”text”>Online and sports gambling stocks Penn and Draftkings Inc (NASDAQ: DKNG) have been on fire in 2020, and S3 Partners analyst Ihor Dusaniwsky said Thursday that heavy losses are driving short sellers to the sidelines.

MGM) has the largest short interest within the casino and gaming group at $1.02 billion. However, DraftKings is a close second at $977.4 million followed by Penn at $954.5 million.” data-reactid=”21″ type=”text”>MGM Resorts International (NYSE: MGM) has the largest short interest within the casino and gaming group at $1.02 billion. However, DraftKings is a close second at $977.4 million followed by Penn at $954.5 million.

Dusaniwsky said short interest in the group has steadily risen since March, but that trend has started to shift in DraftKings and Penn. DraftKings’ short interest is down 14% during the stock’s 51% rally since mid-August. Penn’s short interest has dropped 44% during the stock’s 115% rise since late May.

Those losses have ramped up in the month of September, with DraftKings shorts taking a $310.8 million hit and Penn short sellers enduring $238.4 million in losses.

Dusaniwsky said short covering may continue to push DraftKings and Penn shares higher in the coming weeks.

“With almost $2 billion of short interest between the two stocks, if a sizeable percentage of DKNG and PENN shorts fold, the bid-side price pressure will be significant and be a force in continuing this recent rally,” he said.

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Latest Ratings for PENN

Date Firm Action From To
Sep 2020 Rosenblatt Initiates Coverage On Buy
Sep 2020 Bank of America Reiterates Buy
Aug 2020 Morgan Stanley Downgrades Overweight Equal-Weight

See more from Benzinga” data-reactid=”39″ type=”text”>See more from Benzinga

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