BWS Financial Reiterates Buy Rating for Inspired Entertainment (NASDAQ:INSE)

Key Points

• BWS Financial reaffirmed its Buy rating on Inspired Entertainment (NASDAQ: INSE) and kept a $20 price target, implying roughly 159% upside from the current share price.
• The stock has mixed analyst sentiment overall, with a consensus Hold rating and an average price target of $15 despite the new bullish call from BWS Financial.
• Inspired Entertainment recently reported Q1 earnings of -$0.02 per share, beating estimates, while revenue came in slightly below expectations at $57.2 million; the company also saw notable insider buying and strong institutional ownership.

Inspired Entertainment (NASDAQ:INSE - Get Free Report)'s stock had its "buy" rating reaffirmed by BWS Financial in a research report issued on Monday,Benzinga reports. They currently have a $20.00 target price on the stock. BWS Financial's price objective indicates a potential upside of 159.24% from the company's current price.

A number of other brokerages have also recently issued reports on INSE. Zacks Research upgraded Inspired Entertainment from a "strong sell" rating to a "hold" rating in a research note on Thursday. Weiss Ratings cut Inspired Entertainment from a "hold (c-)" rating to a "sell (d)" rating in a research note on Wednesday, March 11th. One research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $15.00.

Inspired Entertainment Stock Performance

Shares of INSE traded down $0.25 on Monday, reaching $7.72. The stock had a trading volume of 53,402 shares, compared to its average volume of 105,545. The firm has a market capitalization of $205.80 million, a price-to-earnings ratio of -12.66 and a beta of 1.19. The company has a 50-day simple moving average of $7.17 and a 200-day simple moving average of $8.09. Inspired Entertainment has a 12-month low of $6.10 and a 12-month high of $9.95.

Inspired Entertainment (NASDAQ:INSE - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported ($0.02) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.15) by $0.13. The business had revenue of $57.20 million during the quarter, compared to analysts' expectations of $58.89 million. Inspired Entertainment had a negative return on equity of 1,176.67% and a negative net margin of 5.78%. On average, analysts expect that Inspired Entertainment will post 0.25 EPS for the current fiscal year.

Insider Transactions at Inspired Entertainment

In other Inspired Entertainment news, Director Michael R. Chambrello purchased 10,000 shares of the firm's stock in a transaction dated Thursday, March 26th. The stock was purchased at an average price of $6.92 per share, for a total transaction of $69,200.00. Following the completion of the purchase, the director directly owned 64,568 shares of the company's stock, valued at $446,810.56. This trade represents a 18.33% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Chairman A Lorne Weil purchased 21,659 shares of the firm's stock in a transaction dated Thursday, March 26th. The stock was acquired at an average price of $6.85 per share, with a total value of $148,364.15. Following the purchase, the chairman directly owned 602,771 shares of the company's stock, valued at approximately $4,128,981.35. The trade was a 3.73% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders acquired 80,000 shares of company stock worth $545,748 over the last quarter. 13.10% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of INSE. LSV Asset Management purchased a new position in shares of Inspired Entertainment in the fourth quarter worth $93,000. BNP Paribas Financial Markets grew its holdings in shares of Inspired Entertainment by 428.0% in the second quarter. BNP Paribas Financial Markets now owns 13,437 shares of the company's stock worth $110,000 after acquiring an additional 10,892 shares during the period. Clarus Group Inc. grew its holdings in shares of Inspired Entertainment by 16.2% in the first quarter. Clarus Group Inc. now owns 15,591 shares of the company's stock worth $111,000 after acquiring an additional 2,170 shares during the period. Jane Street Group LLC bought a new stake in shares of Inspired Entertainment in the first quarter worth $123,000. Finally, R Squared Ltd bought a new stake in shares of Inspired Entertainment in the third quarter worth $143,000. Hedge funds and other institutional investors own 77.38% of the company's stock.

Inspired Entertainment Company Profile

Inspired Entertainment, Inc NASDAQ: INSE is a business-to-business provider of digital gaming content and technology solutions for the global gaming industry. The company's offerings include server-based gaming modules, virtual sports simulations, digital interactive content and mobile sports betting platforms. Inspired designs proprietary games and software that integrate with lotteries, casino operators, retail betting shops and online platforms, emphasizing reliable performance, rapid deployment and engaging player experiences.

At the core of Inspired's product suite is its Virtual Sports catalog, which simulates sporting events using advanced algorithms and randomized outcomes.

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