Playtika (NASDAQ:PLTK) Shares Gap Up - Here's Why

Key Points

• Shares gapped up premarket — PLTK opened at $2.95 after a $2.74 close and last traded around $3.11 on volume of about 525,700 shares.
• Several firms cut ratings and price targets (Wedbush, Citi, Goldman, Weiss, Wall Street Zen), leaving a consensus rating of “Hold” with an average price target of $4.38.
• Playtika reported a large EPS miss (‑$0.82 vs. $0.14 expected) despite revenue beating estimates ($678.8M vs. $660.3M) and showed negative net margin (‑7.49%) and negative ROE (‑114.29%).

Playtika Holding Corp. (NASDAQ:PLTK - Get Free Report) shares gapped up before the market opened on Monday . The stock had previously closed at $2.74, but opened at $2.95. Playtika shares last traded at $3.1110, with a volume of 525,696 shares trading hands.

Analysts Set New Price Targets

Several analysts have commented on PLTK shares. Wedbush downgraded shares of Playtika from an "outperform" rating to a "neutral" rating and set a $3.00 target price for the company. in a research report on Monday, March 2nd. Citigroup decreased their price objective on shares of Playtika from $7.00 to $5.50 and set a "buy" rating for the company in a report on Friday, February 20th. The Goldman Sachs Group lowered their target price on shares of Playtika from $4.75 to $4.25 and set a "neutral" rating on the stock in a research report on Monday, March 2nd. Weiss Ratings lowered Playtika from a "hold (c-)" rating to a "sell (d)" rating in a report on Monday, March 2nd. Finally, Wall Street Zen cut Playtika from a "buy" rating to a "hold" rating in a research report on Sunday, January 25th. One research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $4.38.

Playtika Stock Performance

The stock's 50-day simple moving average is $3.13 and its two-hundred day simple moving average is $3.59. The stock has a market cap of $1.17 billion, a price-to-earnings ratio of -5.71 and a beta of 0.88.

Playtika (NASDAQ:PLTK - Get Free Report) last issued its quarterly earnings results on Thursday, February 26th. The company reported ($0.82) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.14 by ($0.96). Playtika had a negative net margin of 7.49% and a negative return on equity of 114.29%. The business had revenue of $678.80 million during the quarter, compared to analyst estimates of $660.32 million. During the same period in the prior year, the business posted ($0.04) earnings per share. The company's revenue for the quarter was up 4.4% compared to the same quarter last year. As a group, research analysts predict that Playtika Holding Corp. will post 0.65 earnings per share for the current year.

Institutional Investors Weigh In On Playtika

Hedge funds have recently modified their holdings of the business. Kestra Advisory Services LLC bought a new position in Playtika during the fourth quarter worth $32,000. Signaturefd LLC increased its holdings in shares of Playtika by 129.8% during the 4th quarter. Signaturefd LLC now owns 9,113 shares of the company's stock worth $36,000 after purchasing an additional 5,147 shares during the period. Comerica Bank lifted its stake in shares of Playtika by 278.9% in the fourth quarter. Comerica Bank now owns 9,108 shares of the company's stock valued at $36,000 after buying an additional 6,704 shares during the period. Jackson Thornton Wealth Management LLC bought a new stake in shares of Playtika in the third quarter valued at about $38,000. Finally, ProShare Advisors LLC acquired a new stake in Playtika during the fourth quarter worth about $41,000. 11.94% of the stock is owned by institutional investors.

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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