Playtech (LON:PTEC) Stock Price Down 22.5% - What's Next?

Key Points

• Playtech's stock price plummeted by 22.5% to GBX 266.50 ($3.57) after trading as low as GBX 210 ($2.82), with a significant increase in trading volume of 8,431,737 shares, up 311% from average levels.
• Analysts remain optimistic, with several firms issuing "buy" ratings and target prices ranging from GBX 405 to GBX 510, indicating that they believe the stock has recovery potential.
• Playtech has authorized a stock buyback plan, signaling management's belief that its shares are undervalued, which may support the stock price in the future.

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

Analysts Set New Price Targets

Several equities research analysts have commented on PTEC shares. Peel Hunt reaffirmed a "buy" rating and issued a GBX 510 price target on shares of Playtech in a report on Friday, August 1st. Jefferies Financial Group boosted their price objective on Playtech from GBX 395 to GBX 405 and gave the company a "buy" rating in a report on Friday. Finally, Deutsche Bank Aktiengesellschaft raised their target price on Playtech from GBX 417 to GBX 433 and gave the stock a "buy" rating in a report on Thursday, September 11th.

Playtech Stock Performance

The company has a debt-to-equity ratio of 40.06, a current ratio of 1.55 and a quick ratio of 1.09. The company has a market cap of £816.88 million, a price-to-earnings ratio of 0.46, a PEG ratio of 1.28 and a beta of 1.26. The firm has a 50 day simple moving average of GBX 382.68 and a 200-day simple moving average of GBX 434.23.

Playtech announced that its Board of Directors has initiated a stock repurchase plan on Thursday, September 25th that authorizes the company to repurchase 0 outstanding shares. This repurchase authorization authorizes the company to purchase shares of its stock through open market purchases. Stock repurchase plans are often an indication that the company's management 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.

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