Playtika (NASDAQ:PLTK) Hits New 1-Year Low - Time to Sell?

Key Points

• Playtika Holding Corp. (NASDAQ:PLTK) shares recently hit a new 1-year low, trading as low as $3.65, amid significant trading volume.
• Analysts have downgraded their price targets for Playtika, with Wedbush reducing its target from $11.50 to $7.00, while Morgan Stanley set a new target at $5.75.
• The company reported a quarterly earnings miss of $0.02 EPS against a consensus estimate of $0.15, alongside a year-over-year revenue increase of 11% to $696 million.

Playtika Holding Corp. (NASDAQ:PLTK - Get Free Report)'s stock price hit a new 52-week low on Wednesday . The stock traded as low as $3.65 and last traded at $3.81, with a volume of 1936102 shares changing hands. The stock had previously closed at $3.78.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on PLTK. Morgan Stanley cut their price objective on shares of Playtika from $7.25 to $5.75 and set an "equal weight" rating on the stock in a research report on Thursday, April 17th. Wedbush cut their price objective on shares of Playtika from $11.50 to $7.00 and set an "outperform" rating on the stock in a research report on Friday, August 8th. Finally, Wall Street Zen upgraded shares of Playtika from a "hold" rating to a "buy" rating in a research report on Saturday, August 9th. Five investment analysts have rated the stock with a hold rating and four have given a buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $7.04.

Playtika Stock Performance

The stock has a market cap of $1.35 billion, a price-to-earnings ratio of 14.96, a PEG ratio of 1.27 and a beta of 0.85. The company's 50 day simple moving average is $4.58 and its 200 day simple moving average is $5.17.

Playtika (NASDAQ:PLTK - Get Free Report) last released its earnings results on Thursday, August 7th. The company reported $0.02 EPS for the quarter, missing the consensus estimate of $0.15 by ($0.13). The company had revenue of $696.00 million for the quarter, compared to analyst estimates of $706.03 million. Playtika had a net margin of 3.23% and a negative return on equity of 83.90%. The firm's quarterly revenue was up 11.0% on a year-over-year basis. During the same period in the previous year, the business posted $0.23 EPS. Sell-side analysts predict that Playtika Holding Corp. will post 0.65 EPS for the current year.

Playtika Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 10th. Stockholders of record on Friday, September 26th will be given a dividend of $0.10 per share. The ex-dividend date is Friday, September 26th. This represents a $0.40 annualized dividend and a dividend yield of 11.1%. Playtika's dividend payout ratio (DPR) is 166.67%.

Insider Buying and Selling at Playtika

In other news, major shareholder Holding Uk Ltd Playtika II sold 389,053 shares of the firm's stock in a transaction dated Tuesday, May 27th. The shares were sold at an average price of $4.70, for a total transaction of $1,828,549.10. Following the completion of the transaction, the insider owned 199,510,511 shares in the company, valued at approximately $937,699,401.70. This trade represents a 0.19% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Company insiders own 5.10% of the company's stock.

Hedge Funds Weigh In On Playtika

Several large investors have recently made changes to their positions in PLTK. PDT Partners LLC purchased a new stake in Playtika during the second quarter valued at about $217,000. Canada Pension Plan Investment Board lifted its stake in Playtika by 72.4% during the second quarter. Canada Pension Plan Investment Board now owns 41,900 shares of the company's stock valued at $198,000 after buying an additional 17,600 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in Playtika by 58.2% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 162,628 shares of the company's stock valued at $769,000 after buying an additional 59,847 shares in the last quarter. The Manufacturers Life Insurance Company lifted its stake in Playtika by 19.1% during the second quarter. The Manufacturers Life Insurance Company now owns 3,708,556 shares of the company's stock valued at $17,541,000 after buying an additional 595,494 shares in the last quarter. Finally, Squarepoint Ops LLC lifted its stake in Playtika by 8.3% during the second quarter. Squarepoint Ops LLC now owns 987,527 shares of the company's stock valued at $4,671,000 after buying an additional 75,757 shares in the last quarter. Institutional investors own 11.94% of the company's stock.

About Playtika

Playtika Holding Corp., together with its subsidiaries, develops mobile games in the United States, Europe, Middle East, Africa, Asia pacific, and internationally. The company owns a portfolio of casual and social casino-themed games. It distributes its games to the end customer through various web and mobile platforms and direct-to-consumer platforms.