Playtech (LON:PTEC) Trading Up 16.5% - Time to Buy?

Key Points

• Playtech shares jumped 16.5% in midday trading, reaching as high as GBX 384.80 after closing previously at GBX 321.20. Trading volume was well below average, with about 1.26 million shares changing hands.
• Several analysts recently updated their views on the stock, including Citigroup and Deutsche Bank raising price targets and keeping buy ratings, while Jefferies maintained a hold rating with a GBX 405 target.
• The company also announced a share repurchase program for up to 5.66 million shares, and insiders Mor Weizer and Chris McGinnis bought additional shares in May, signaling management confidence.

Playtech plc (LON:PTEC - Get Free Report) shot up 16.5% during mid-day trading on Thursday . The company traded as high as GBX 384.80 and last traded at GBX 374.06. Approximately 1,257,735 shares changed hands during mid-day trading, a decline of 89% from the average daily volume of 11,017,529 shares. The stock had previously closed at GBX 321.20.

Analyst Ratings Changes

Several brokerages have recently commented on PTEC. Citigroup increased their price target on shares of Playtech from GBX 355 to GBX 400 and gave the stock a "buy" rating in a research note on Monday, March 30th. Jefferies Financial Group reiterated a "hold" rating and issued a GBX 405 price objective on shares of Playtech in a report on Thursday. Finally, Deutsche Bank Aktiengesellschaft increased their target price on shares of Playtech from GBX 443 to GBX 460 and gave the stock a "buy" rating in a research report on Thursday, May 21st.

Playtech Stock Up 16.5%

The firm has a 50-day moving average of GBX 338.95 and a two-hundred day moving average of GBX 333.16. The firm has a market cap of £1.04 billion, a price-to-earnings ratio of 0.77, a PEG ratio of 1.28 and a beta of 0.64. The company has a current ratio of 1.42, a quick ratio of 1.09 and a debt-to-equity ratio of 24.36.

Playtech declared that its Board of Directors has approved a share repurchase program on Friday, March 27th that allows the company to buyback 5,660,000 shares. This buyback authorization allows the company to repurchase shares of its stock through open market purchases. Stock buyback programs are usually an indication that the company's leadership believes its shares are undervalued.

Insider Activity at Playtech

In related news, insider Mor Weizer acquired 71,321 shares of the stock in a transaction dated Wednesday, May 20th. The shares were acquired at an average price of GBX 375 per share, for a total transaction of £267,453.75. Also, insider Chris McGinnis bought 27,080 shares of the company's stock in a transaction that occurred on Wednesday, May 20th. The shares were bought at an average cost of GBX 372 per share, for a total transaction of £100,737.60. 0.82% of the stock is currently owned by corporate insiders.

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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