Playtech (LON:PTEC) Shares Down 28.9% - Here's What Happened

Key Points

• Playtech shares plummeted 28.9% during trading, closing at GBX 244.50 ($3.28), after a significant decline from a prior closing price of GBX 344 ($4.61).
• The company's Board of Directors has authorized a share buyback plan, typically seen as a sign that leadership believes the stock is undervalued.
• Despite the recent downturn, several analysts have maintained a "buy" rating for Playtech, with target prices as high as GBX 510 from Peel Hunt.

Shares of Playtech plc (LON:PTEC - Get Free Report) traded down 28.9% during trading on Tuesday . The stock traded as low as GBX 210 ($2.82) and last traded at GBX 244.50 ($3.28). 28,284,787 shares traded hands during trading, an increase of 1,216% from the average session volume of 2,150,059 shares. The stock had previously closed at GBX 344 ($4.61).

Analyst Ratings Changes

PTEC has been the topic of a number of research reports. Peel Hunt restated a "buy" rating and issued a GBX 510 target price on shares of Playtech in a report on Friday, August 1st. Jefferies Financial Group lifted their price target on Playtech from GBX 395 to GBX 405 and gave the stock a "buy" rating in a research report on Friday. Finally, Deutsche Bank Aktiengesellschaft upped their price objective on Playtech from GBX 417 to GBX 433 and gave the company a "buy" rating in a research report on Thursday, September 11th.

Playtech Stock Down 28.9%

The company's 50 day moving average is GBX 382.68 and its 200 day moving average is GBX 434.23. 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 £749.45 million, a PE ratio of 0.42, a P/E/G ratio of 1.28 and a beta of 1.26.

Playtech announced that its Board of Directors has authorized a share buyback plan on Thursday, September 25th that permits the company to buyback 0 shares. This buyback authorization permits the company to purchase shares of its stock through open market purchases. Shares buyback plans are often an indication that the company's leadership believes its stock is 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.

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