Playtech (LON:PTEC) Shares Down 22.5% - Should You Sell?

Key Points

• Playtech plc's shares experienced a significant drop of 22.5% on Tuesday, trading as low as GBX 210 ($2.81) from a previous close of GBX 344 ($4.60).
• Despite the recent decline, several analysts, including Deutsche Bank and Jefferies, have maintained a "buy" rating on the stock, with price targets ranging from GBX 405 to GBX 510.
• Playtech's board has approved a share repurchase plan, indicating confidence in the company's valuation and intention to buy back shares on the open market.

Shares of Playtech plc (LON:PTEC - Get Free Report) dropped 22.5% during trading on Tuesday . The stock traded as low as GBX 210 ($2.81) and last traded at GBX 266.50 ($3.56). Approximately 8,431,737 shares traded hands during trading, an increase of 311% from the average daily volume of 2,052,740 shares. The stock had previously closed at GBX 344 ($4.60).

Wall Street Analysts Forecast Growth

PTEC has been the subject of several research reports. Deutsche Bank Aktiengesellschaft increased their price objective on shares of Playtech from GBX 417 to GBX 433 and gave the company a "buy" rating in a research report on Thursday, September 11th. Jefferies Financial Group increased their price objective on shares of Playtech from GBX 395 to GBX 405 and gave the company a "buy" rating in a research report on Friday, October 17th. Finally, Peel Hunt reiterated a "buy" rating and set a GBX 510 price objective on shares of Playtech in a research report on Friday, August 1st.

Playtech Stock Up 5.4%

The company has a current ratio of 1.55, a quick ratio of 1.09 and a debt-to-equity ratio of 40.06. The company has a market cap of £861.00 million, a PE ratio of 0.48, a P/E/G ratio of 1.28 and a beta of 1.26. The company's 50 day moving average is GBX 379.31 and its 200 day moving average is GBX 433.06.

Playtech declared that its board has approved a share repurchase plan on Thursday, September 25th that allows the company to buyback 0 outstanding shares. This buyback authorization allows the company to buy shares of its stock through open market purchases. Shares buyback plans are often a sign that the company's board believes its stock is undervalued.

Playtech Company Profile

Playtech plc, a technology company, provides gambling software, services, content, and platform technologies worldwide. The company offers technologies across various product verticals, including live casino, sports, bingo, virtual sports, and poker. It also owns the intellectual property rights and licenses the software; provides digital marketing and advertising, consulting and online technical support, data mining processing, turnkey, live game, and video stream services; and operates betting shops.

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