Playtech (LON:PTEC) Shares Down 22.5% - Time to Sell?

Key Points

• Playtech's shares experienced a significant drop of 22.5%, trading as low as GBX 210 ($2.81) during mid-day on Tuesday after closing at GBX 344 ($4.60) the previous day.
• Brokerages like Peel Hunt, Jefferies Financial Group, and Deutsche Bank have maintained or increased their "buy" ratings, with target prices ranging from GBX 405 to GBX 510.
• Playtech's Board of Directors approved a share repurchase plan, indicating that they believe the company's shares are undervalued.

Playtech plc (LON:PTEC - Get Free Report) shares were down 22.5% during mid-day trading on Tuesday . The company traded as low as GBX 210 ($2.81) and last traded at GBX 266.50 ($3.56). Approximately 8,431,737 shares were traded during mid-day 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).

Analyst Upgrades and Downgrades

A number of brokerages have commented on PTEC. Peel Hunt reaffirmed a "buy" rating and set a GBX 510 target price on shares of Playtech in a research note on Friday, August 1st. Jefferies Financial Group upped their price objective on shares of Playtech from GBX 395 to GBX 405 and gave the stock a "buy" rating in a report on Friday. Finally, Deutsche Bank Aktiengesellschaft lifted their target price on shares of Playtech from GBX 417 to GBX 433 and gave the company a "buy" rating in a report on Thursday, September 11th.

Playtech Stock Performance

The firm has a fifty day simple moving average of GBX 382.68 and a 200-day simple moving average of GBX 434.23. The company has a quick ratio of 1.09, a current ratio of 1.55 and a debt-to-equity ratio of 40.06. The company has a market cap of £816.88 million, a PE ratio of 0.46, a price-to-earnings-growth ratio of 1.28 and a beta of 1.26.

Playtech announced that its Board of Directors has approved a share repurchase plan on Thursday, September 25th that allows the company to repurchase 0 shares. This repurchase authorization allows the company to repurchase shares of its stock through open market purchases. Shares repurchase plans are typically a sign that the company's board believes its shares are undervalued.

About Playtech

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.