Playtech (LON:PTEC) Trading Down 22.5% - What's Next?

Key Points

• Playtech's shares fell by 22.5%, trading between GBX 210 and GBX 266.50, with a significant increase in trading volume of 311% compared to the daily average.
• Despite the recent drop, analysts from Jefferies and Deutsche Bank have issued "buy" ratings with target prices raised above the current trading price.
• The company has recently authorized a share repurchase program, indicating the board's belief that its shares are undervalued.

Playtech plc (LON:PTEC - Get Free Report)'s share price was down 22.5% during trading on Wednesday . The stock traded as low as GBX 210 ($2.81) and last traded at GBX 266.50 ($3.56). Approximately 8,431,737 shares were traded 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

Several analysts have recently commented on PTEC shares. 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 report on Friday, October 17th. Deutsche Bank Aktiengesellschaft lifted their price objective on Playtech from GBX 417 to GBX 433 and gave the company a "buy" rating in a research report on Thursday, September 11th. Finally, 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.

Playtech Stock Up 6.0%

The business has a 50-day simple moving average of GBX 379.31 and a two-hundred day simple moving average of GBX 433.06. The company has a market cap of £865.92 million, a price-to-earnings ratio of 0.49, a PEG ratio of 1.28 and a beta of 1.26. The company has a quick ratio of 1.09, a current ratio of 1.55 and a debt-to-equity ratio of 40.06.

Playtech announced that its Board of Directors has authorized a share repurchase program on Thursday, September 25th that authorizes the company to repurchase 0 shares. This repurchase authorization authorizes the company to buy shares of its stock through open market purchases. Shares repurchase programs are typically 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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