Playtech (LON:PTEC) Stock Price Down 28.9% - What's Next?

Key Points

• Playtech shares have experienced a significant decline of 28.9%, trading at GBX 244.50 ($3.28), amidst a sharp increase in trading volume.
• Despite the recent downturn, several analysts have increased their target prices for Playtech, signaling potential growth potential with "buy" ratings from firms like Deutsche Bank and Peel Hunt.
• The company has initiated a stock buyback program, which often indicates that management believes the shares are undervalued and may indicate a positive outlook.

Playtech plc (LON:PTEC - Get Free Report) shares fell 28.9% during trading on Tuesday . The company traded as low as GBX 244.50 ($3.28) and last traded at GBX 244.50 ($3.28). 6,558,148 shares changed hands during mid-day trading, an increase of 221% from the average session volume of 2,043,556 shares. The stock had previously closed at GBX 344 ($4.61).

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the company. Deutsche Bank Aktiengesellschaft increased 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. Peel Hunt reiterated a "buy" rating and set a GBX 510 target price on shares of Playtech in a report on Friday, August 1st. Finally, Jefferies Financial Group increased their target price on Playtech from GBX 395 to GBX 405 and gave the stock a "buy" rating in a report on Friday.

Playtech Price Performance

The firm has a market capitalization of £767.07 million, a price-to-earnings ratio of 0.43, a P/E/G ratio of 1.28 and a beta of 1.26. 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.

Playtech announced that its Board of Directors has initiated a stock buyback program on Thursday, September 25th that authorizes the company to buyback 0 shares. This buyback authorization authorizes the company to repurchase shares of its stock through open market purchases. Stock buyback programs are usually a sign 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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