Playtech (LON:PTEC) Stock Price Down 5.3% - Time to Sell?

Key Points

• Playtech shares fell 5.3% on Tuesday to GBX 404.80 (intraday low GBX 402.40) on heavy trading of about 24.13 million shares, roughly an 85% increase versus average volume.
• The Board has authorized a share buyback allowing repurchase of 5,660,000 shares, a move that typically signals management believes the stock is undervalued.
• Analyst opinions are mixed but clustered: Citigroup raised its price target to GBX 400 (buy), Deutsche Bank cut its target to GBX 390 (buy), and Jefferies holds a GBX 405 target (hold), implying a target range near GBX 390–405.

Playtech plc (LON:PTEC - Get Free Report) shares were down 5.3% during trading on Tuesday . The stock traded as low as GBX 402.40 and last traded at GBX 404.80. Approximately 24,129,354 shares changed hands during mid-day trading, an increase of 85% from the average daily volume of 13,053,952 shares. The stock had previously closed at GBX 427.60.

Analyst Ratings Changes

Several research analysts recently commented on PTEC shares. Citigroup lifted their price target on Playtech from GBX 355 to GBX 400 and gave the stock a "buy" rating in a research report on Monday, March 30th. Deutsche Bank Aktiengesellschaft dropped their price target on Playtech from GBX 433 to GBX 390 and set a "buy" rating for the company in a research report on Friday, January 23rd. Finally, Jefferies Financial Group reiterated a "hold" rating and issued a GBX 405 price target on shares of Playtech in a research report on Thursday, April 9th.

Playtech Stock Up 0.7%

The company has a 50-day simple moving average of GBX 359.37 and a 200-day simple moving average of GBX 309.37. The firm has a market cap of £1.15 billion, a PE ratio of 0.84, a price-to-earnings-growth ratio of 1.28 and a beta of 0.63. The company has a debt-to-equity ratio of 24.36, a current ratio of 1.42 and a quick ratio of 1.09.

Playtech declared that its Board of Directors has initiated a stock buyback plan on Friday, March 27th that allows the company to buyback 5,660,000 shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Stock buyback plans are usually 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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