Playtech (LON:PTEC) Trading Down 22.5% - Here's Why

Key Points

• Playtech's share price fell 22.5% during trading, dropping from GBX 344 ($4.60) to a low of GBX 210 ($2.81), with trading volume significantly increasing by 311% compared to its average daily volume.
• Analysts have mixed views, with firms like Peel Hunt, Jefferies, and Deutsche Bank maintaining "buy" ratings but adjusting price targets between GBX 405 and GBX 510.
• The company has authorized a stock buyback program as of September 25th, suggesting a belief that its shares are undervalued.

Playtech plc (LON:PTEC - Get Free Report)'s share price dropped 22.5% during trading on Tuesday . The company traded as low as GBX 210 ($2.81) and last traded at GBX 266.50 ($3.56). Approximately 8,431,737 shares traded hands during mid-day trading, an increase of 311% from the average daily volume of 2,052,740 shares. The stock had previously closed at GBX 344 ($4.60).

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on PTEC. Peel Hunt restated a "buy" rating and set a GBX 510 price target on shares of Playtech in a research note 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 boosted their price target on Playtech from GBX 417 to GBX 433 and gave the stock a "buy" rating in a research note on Thursday, September 11th.

Playtech Trading Down 22.5%

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 company has a 50-day simple moving average of GBX 379.31 and a 200 day simple moving average of GBX 433.06. The firm has a market cap of £816.88 million, a PE ratio of 0.46, a price-to-earnings-growth ratio of 1.28 and a beta of 1.26.

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

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.