Inspired Entertainment (NASDAQ:INSE) Rating Increased to Hold at Zacks Research

Key Points

• Zacks Research upgraded Inspired Entertainment from a "strong sell" to a "hold," while the broader analyst consensus remains a Hold with a $15.00 target price.
• The company reported a smaller-than-expected loss in its latest quarter, posting ($0.02) EPS versus the expected ($0.15), though revenue of $57.2 million came in slightly below estimates.
• Insiders have been buying shares recently, including purchases by a director and the chairman, and company insiders own 13.1% of the stock overall.

Inspired Entertainment (NASDAQ:INSE - Get Free Report) was upgraded by investment analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research note issued to investors on Thursday,Zacks.com reports.

Other equities research analysts have also recently issued reports about the company. BWS Financial reissued a "buy" rating and issued a $20.00 target price on shares of Inspired Entertainment in a research note on Wednesday, March 11th. Weiss Ratings cut Inspired Entertainment from a "hold (c-)" rating to a "sell (d)" rating in a research note on Wednesday, March 11th. One equities research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, Inspired Entertainment currently has an average rating of "Hold" and a consensus target price of $15.00.

Inspired Entertainment Stock Performance

Shares of INSE opened at $7.96 on Thursday. The stock has a fifty day moving average price of $7.17 and a two-hundred day moving average price of $8.09. Inspired Entertainment has a 52-week low of $6.10 and a 52-week high of $9.95. The company has a market cap of $212.29 million, a price-to-earnings ratio of -13.05 and a beta of 1.19.

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

Insider Activity

In other news, Director Michael R. Chambrello bought 10,000 shares of the stock in a transaction dated Thursday, March 26th. The stock was bought at an average cost of $6.92 per share, with a total value of $69,200.00. Following the purchase, the director owned 64,568 shares of the company's stock, valued at approximately $446,810.56. This represents a 18.33% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. Also, Chairman A Lorne Weil bought 20,000 shares of the stock in a transaction dated Friday, March 27th. The stock was purchased at an average cost of $6.80 per share, with a total value of $136,000.00. Following the completion of the purchase, the chairman directly owned 622,771 shares in the company, valued at approximately $4,234,842.80. This trade represents a 3.32% increase in their position. The SEC filing for this purchase provides additional information. In the last ninety days, insiders bought 80,000 shares of company stock valued at $545,748. Company insiders own 13.10% of the company's stock.

Institutional Investors Weigh In On Inspired Entertainment

A number of institutional investors have recently made changes to their positions in the stock. Kanen Wealth Management LLC grew its stake in shares of Inspired Entertainment by 12.3% during the third quarter. Kanen Wealth Management LLC now owns 2,683,969 shares of the company's stock worth $25,085,000 after purchasing an additional 294,962 shares during the period. Private Management Group Inc. grew its stake in shares of Inspired Entertainment by 0.7% during the third quarter. Private Management Group Inc. now owns 1,313,904 shares of the company's stock worth $12,324,000 after purchasing an additional 8,900 shares during the period. Brown Advisory Inc. grew its stake in shares of Inspired Entertainment by 8.4% during the fourth quarter. Brown Advisory Inc. now owns 900,633 shares of the company's stock worth $8,430,000 after purchasing an additional 70,000 shares during the period. CSM Advisors LLC grew its stake in shares of Inspired Entertainment by 8.8% during the fourth quarter. CSM Advisors LLC now owns 707,428 shares of the company's stock worth $6,621,000 after purchasing an additional 57,485 shares during the period. Finally, Potomac Capital Management Inc. acquired a new stake in shares of Inspired Entertainment during the fourth quarter worth $6,089,000. 77.38% of the stock is owned by institutional investors and hedge funds.

About Inspired Entertainment

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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