Playtech (LON:PTEC) Trading Down 21.5% - Time to Sell?

Key Points

• Playtech plc's stock price fell 21.5%, reaching as low as GBX 210 ($2.82) during mid-day trading, significantly below its previous close of GBX 344 ($4.61).
• Despite the drop, several brokerages maintain a "buy" rating for Playtech, with price targets raised by Peel Hunt, Jefferies Financial Group, and Deutsche Bank.
• Playtech has authorized a stock buyback plan, indicating management's belief that the stock is undervalued.

Playtech plc (LON:PTEC - Get Free Report) dropped 21.5% during mid-day trading on Tuesday . The stock traded as low as GBX 210 ($2.82) and last traded at GBX 270 ($3.62). Approximately 31,450,535 shares changed hands during mid-day trading, an increase of 1,352% from the average daily volume of 2,165,578 shares. The stock had previously closed at GBX 344 ($4.61).

Analyst Ratings Changes

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

Playtech Price Performance

The stock has a market cap of £816.88 million, a PE ratio of 0.46, a PEG ratio of 1.28 and a beta of 1.26. 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 50-day simple moving average of GBX 382.68 and a 200-day simple moving average of GBX 434.23.

Playtech declared that its board has authorized a stock buyback plan on Thursday, September 25th that allows the company to buyback 0 outstanding shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its stock is 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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