Playtech (LON:PTEC) Stock Price Down 32.7% - What's Next?

Key Points

• Playtech's stock price dropped 32.7% in a single day, reaching a low of GBX 210 ($2.82) and closing at GBX 231.50 ($3.10).
• Despite the recent decline, several analysts have set new target prices for Playtech, with Deutsche Bank raising theirs to GBX 433 and Jefferies Financial Group to GBX 405, both maintaining a "buy" rating.
• The company initiated a share buyback program, reflecting confidence from its Board of Directors in the stock's undervaluation amidst its price drop.

Playtech plc (LON:PTEC - Get Free Report)'s stock price fell 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). 22,192,279 shares changed hands during mid-day trading, an increase of 947% from the average session volume of 2,120,194 shares. The stock had previously closed at GBX 344 ($4.61).

Analysts Set New Price Targets

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

Playtech Price Performance

The company has a market capitalization of £740.31 million, a PE ratio of 0.42, a P/E/G ratio of 1.28 and a beta of 1.26. 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 stock has a fifty 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 share buyback program on Thursday, September 25th that allows the company to buyback 0 shares. This buyback authorization allows the company to purchase shares of its stock through open market purchases. Shares buyback programs are often a sign that the company's board of directors believes its shares are undervalued.

Playtech Company Profile

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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