Playtika (NASDAQ:PLTK) Shares Gap Down on Disappointing Earnings

Key Points

• Playtika shares fell sharply, opening at $3.47 versus a prior close of $3.89 and later trading around $3.36, a decline of roughly 17.4%.
• The company reported quarterly EPS of $0.13, missing the $0.17 consensus estimate, while revenue of $731.1 million exceeded expectations and rose 5% year over year.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $4.17; institutional investors own 11.94% of the company.

Playtika Holding Corp. (NASDAQ:PLTK - Get Free Report)'s share price gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $3.89, but opened at $3.47. Playtika shares last traded at $3.3550, with a volume of 309,795 shares.

The company reported $0.13 earnings per share for the quarter, missing analysts' consensus estimates of $0.17 by ($0.04). The firm had revenue of $731.10 million for the quarter, compared to analysts' expectations of $713.12 million. Playtika had a negative net margin of 10.54% and a negative return on equity of 67.46%. The company's revenue for the quarter was up 5.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.09 EPS.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on the company. Roth Capital upped their price objective on Playtika from $3.00 to $3.50 and gave the stock a "neutral" rating in a report on Wednesday, May 27th. Wedbush raised their target price on shares of Playtika from $3.00 to $4.00 and gave the company a "neutral" rating in a report on Monday. Weiss Ratings restated a "sell (d)" rating on shares of Playtika in a research report on Friday, May 29th. Finally, TD Cowen reaffirmed a "buy" rating on shares of Playtika in a research note on Tuesday, June 9th. Two analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $4.17.

Institutional Investors Weigh In On Playtika

Several institutional investors have recently made changes to their positions in the company. Kestra Advisory Services LLC bought a new position in Playtika in the 4th quarter valued at $32,000. Comerica Bank lifted its position in shares of Playtika by 278.9% during the fourth quarter. Comerica Bank now owns 9,108 shares of the company's stock worth $36,000 after purchasing an additional 6,704 shares during the last quarter. Signaturefd LLC boosted its stake in shares of Playtika by 129.8% during the fourth quarter. Signaturefd LLC now owns 9,113 shares of the company's stock valued at $36,000 after purchasing an additional 5,147 shares during the period. Independent Financial Group LLC bought a new position in shares of Playtika in the first quarter worth about $28,000. Finally, ProShare Advisors LLC bought a new position in shares of Playtika in the fourth quarter worth about $41,000. Institutional investors own 11.94% of the company's stock.

Playtika Trading Down 17.4%

The company has a market cap of $1.22 billion, a PE ratio of -4.23 and a beta of 1.09. The company's 50 day moving average is $3.69 and its 200 day moving average is $3.43.

About Playtika

Playtika Ltd. NASDAQ: PLTK is a leading developer and publisher of free-to-play mobile and social games. Established in 2010 and headquartered in Herzliya, Israel, the company has built a reputation for creating engaging, social casino and casual gaming experiences. Playtika's platform leverages data-driven analytics and in-game community features to drive player retention and monetization across multiple titles.

The company's diverse portfolio includes flagship social casino games such as Slotomania, Bingo Blitz and Caesars Casino, as well as skill-based and casual offerings like World Series of Poker and House of Fun.

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