Playtech (LON:PTEC) Stock Price Down 32.7% - Should You Sell?

Key Points

• Playtech's stock price plummeted 32.7% on Tuesday, trading as low as GBX 210 ($2.82) before slightly recovering to GBX 231.50 ($3.10).
• Despite the recent drop, several analysts maintain a buy rating for Playtech, with price targets ranging from GBX 405 to GBX 510.
• The company has authorized a stock buyback program, indicating that the Board believes its shares are undervalued.

Shares of Playtech plc (LON:PTEC - Get Free Report) dropped 32.7% during trading on Tuesday . The stock traded as low as GBX 210 ($2.82) and last traded at GBX 231.50 ($3.10). Approximately 22,192,279 shares traded hands during mid-day trading, an increase of 947% from the average daily volume of 2,120,194 shares. The stock had previously closed at GBX 344 ($4.61).

Wall Street Analysts Forecast Growth

PTEC has been the topic of several research reports. 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. Peel Hunt reissued a "buy" rating and set a GBX 510 price objective on shares of Playtech in a research note on Friday, August 1st. Finally, Deutsche Bank Aktiengesellschaft upped their price objective 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.

Playtech Stock Performance

The company has a market capitalization of £740.31 million, a price-to-earnings ratio of 0.42, a price-to-earnings-growth ratio of 1.28 and a beta of 1.26. The company has a debt-to-equity ratio of 40.06, a quick ratio of 1.09 and a current ratio of 1.55. The company's fifty day simple moving average is GBX 382.68 and its two-hundred day simple moving average is GBX 434.23.

Playtech declared that its Board of Directors has authorized a stock buyback program on Thursday, September 25th that authorizes the company to buyback 0 shares. This buyback authorization authorizes the company to purchase shares of its stock through open market purchases. Shares buyback programs are generally an indication that the company's board of directors 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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