Playtech (LON:PTEC) Trading Down 28.9% - Should You Sell?

Key Points

• Playtech plc's share price plummeted 28.9% during mid-day trading, dropping to a low of GBX 210 ($2.82) from a previous close of GBX 344 ($4.61).
• Wall Street analysts maintain a positive outlook on Playtech, with firms like Peel Hunt and Deutsche Bank issuing "buy" ratings and raising their price targets to as high as GBX 510.
• The company has authorized a stock buyback plan, indicating the board believes its shares are currently undervalued.

Playtech plc (LON:PTEC - Get Free Report)'s share price dropped 28.9% during mid-day trading on Tuesday . The stock traded as low as GBX 210 ($2.82) and last traded at GBX 244.50 ($3.28). Approximately 28,284,787 shares were traded during trading, an increase of 1,216% from the average daily volume of 2,150,059 shares. The stock had previously closed at GBX 344 ($4.61).

Wall Street Analysts Forecast Growth

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

Playtech Stock Performance

The company has a debt-to-equity ratio of 40.06, a quick ratio of 1.09 and a current ratio of 1.55. The stock has a market cap of £789.29 million, a P/E ratio of 0.44, a price-to-earnings-growth ratio of 1.28 and a beta of 1.26. The company's 50 day moving average price is GBX 382.68 and its 200-day moving average price is GBX 434.23.

Playtech declared that its board has authorized a stock buyback plan on Thursday, September 25th that authorizes the company to buyback 0 shares. This buyback authorization authorizes the company to reacquire shares of its stock through open market purchases. Stock buyback plans are typically an indication that the company's board 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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