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

Playtech logo with Consumer Cyclical background

Key Points

  • Playtech's stock has dropped by 22.5% during trading, with shares trading as low as GBX 210 ($2.82) before recovering slightly to GBX 266.50 ($3.57).
  • Despite the decline, several research firms have maintained a "buy" rating for Playtech, with target prices ranging from GBX 405 to GBX 510.
  • The company has implemented a share buyback program, indicating management's belief that its shares are undervalued.
  • Five stocks we like better than Playtech.

Playtech plc (LON:PTEC - Get Free Report) shares were down 22.5% during trading on Tuesday . The company traded as low as GBX 210 ($2.82) and last traded at GBX 266.50 ($3.57). Approximately 8,431,737 shares were traded during trading, an increase of 311% from the average daily volume of 2,052,740 shares. The stock had previously closed at GBX 344 ($4.61).

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on PTEC. Jefferies Financial Group increased their price target on shares of Playtech from GBX 395 to GBX 405 and gave the company a "buy" rating in a research report on Friday. Deutsche Bank Aktiengesellschaft boosted their target price on shares of Playtech from GBX 417 to GBX 433 and gave the company a "buy" rating in a research note on Thursday, September 11th. Finally, Peel Hunt restated a "buy" rating and set a GBX 510 price target on shares of Playtech in a research note on Friday, August 1st.

Check Out Our Latest Report on PTEC

Playtech Stock Down 22.5%

The firm has a market cap of £816.88 million, a P/E ratio of 0.46, a P/E/G ratio of 1.28 and a beta of 1.26. The stock's 50 day simple moving average is GBX 382.68 and its two-hundred day simple moving average is GBX 434.23. The company has a debt-to-equity ratio of 40.06, a current ratio of 1.55 and a quick ratio of 1.09.

Playtech announced that its board has approved a share buyback program on Thursday, September 25th that allows the company to repurchase 0 shares. This repurchase authorization allows the company to buy shares of its stock through open market purchases. Shares repurchase programs are generally an indication that the company's management believes its shares are undervalued.

About Playtech

(Get Free Report)

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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