Playtika (NASDAQ:PLTK) Trading Up 8.2% - Still a Buy?

Key Points

• Playtika's stock surged 8.2% to $3.90, but trading volume dropped significantly to about 883,705 shares, down 51% from its average daily volume.
• Analyst sentiment is mixed; UBS rated it "neutral" with a target price cut to $4.00, while Wall Street Zen upgraded it to "buy" and Wedbush reduced their target to $7.00.
• Playtika recently announced a quarterly dividend of $0.10, resulting in a 10.3% dividend yield, despite a high dividend payout ratio of 166.67%.

Playtika Holding Corp. (NASDAQ:PLTK - Get Free Report)'s stock price was up 8.2% during trading on Monday . The stock traded as high as $3.89 and last traded at $3.90. Approximately 883,705 shares traded hands during mid-day trading, a decline of 51% from the average daily volume of 1,793,845 shares. The stock had previously closed at $3.60.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on PLTK. UBS Group dropped their target price on Playtika from $5.50 to $4.00 and set a "neutral" rating on the stock in a research report on Thursday, September 11th. Wall Street Zen raised Playtika from a "hold" rating to a "buy" rating in a report on Saturday, August 9th. Finally, Wedbush decreased their target price on Playtika from $11.50 to $7.00 and set an "outperform" rating for the company in a research note on Friday, August 8th. Three investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $6.66.

Playtika Price Performance

The stock has a fifty day moving average price of $3.90 and a 200-day moving average price of $4.53. The company has a market cap of $1.46 billion, a PE ratio of 16.23, a price-to-earnings-growth ratio of 1.21 and a beta of 0.84.

Playtika (NASDAQ:PLTK - Get Free Report) last released its earnings results on Thursday, August 7th. The company reported $0.02 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.15 by ($0.13). Playtika had a net margin of 3.23% and a negative return on equity of 83.90%. The business had revenue of $696.00 million during the quarter, compared to analysts' expectations of $706.03 million. During the same quarter in the previous year, the company earned $0.23 EPS. Playtika's revenue for the quarter was up 11.0% on a year-over-year basis. Playtika has set its FY 2025 guidance at EPS. On average, equities analysts anticipate that Playtika Holding Corp. will post 0.65 earnings per share for the current year.

Playtika Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, October 10th. Investors of record on Friday, September 26th will be paid a $0.10 dividend. This represents a $0.40 annualized dividend and a dividend yield of 10.3%. The ex-dividend date is Friday, September 26th. Playtika's dividend payout ratio (DPR) is presently 166.67%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in PLTK. Ameriprise Financial Inc. raised its stake in shares of Playtika by 17.7% in the fourth quarter. Ameriprise Financial Inc. now owns 131,377 shares of the company's stock valued at $912,000 after acquiring an additional 19,710 shares during the last quarter. Two Sigma Investments LP grew its holdings in Playtika by 76.7% during the 4th quarter. Two Sigma Investments LP now owns 163,576 shares of the company's stock worth $1,135,000 after acquiring an additional 70,995 shares during the period. Two Sigma Advisers LP lifted its holdings in Playtika by 411.3% during the fourth quarter. Two Sigma Advisers LP now owns 58,800 shares of the company's stock worth $408,000 after acquiring an additional 47,300 shares in the last quarter. Mackenzie Financial Corp lifted its holdings in Playtika by 314.3% during the fourth quarter. Mackenzie Financial Corp now owns 49,596 shares of the company's stock worth $344,000 after acquiring an additional 37,625 shares in the last quarter. Finally, Wealth Enhancement Advisory Services LLC boosted its stake in Playtika by 5.4% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 56,416 shares of the company's stock worth $392,000 after purchasing an additional 2,886 shares during the period. 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.

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