Inspired Entertainment (NASDAQ:INSE) Share Price Crosses Above 50-Day Moving Average After Analyst Downgrade

Key Points

• Inspired Entertainment shares rose above their 50-day moving average, reaching $4.70 and last trading at $4.65, after Zacks Research upgraded its rating from Hold to Strong Buy.
• Analyst views remain mixed: the consensus rating is Hold, with a $9.81 average price target; four analysts rate the stock Buy, two Hold, and one Sell.
• Quarterly EPS of $0.10 topped the $0.02 estimate, but revenue of $61.4 million fell short of the $64.52 million consensus.

Inspired Entertainment, Inc. (NASDAQ:INSE - Get Free Report) shares passed above its 50 day moving average during trading on Tuesday after Zacks Research upgraded the stock from a hold rating to a strong-buy rating. The stock has a 50 day moving average of $4.11 and traded as high as $4.70. Inspired Entertainment shares last traded at $4.65, with a volume of 563,477 shares traded.

Several other brokerages also recently issued reports on INSE. BWS Financial restated a "buy" rating and issued a $20.00 price objective on shares of Inspired Entertainment in a research note on Monday, May 11th. Weiss Ratings reiterated a "sell (d)" rating on shares of Inspired Entertainment in a research note on Monday, June 8th. Four analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $9.81.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Bank of America Corp DE lifted its holdings in Inspired Entertainment by 6.9% during the 1st quarter. Bank of America Corp DE now owns 25,577 shares of the company's stock worth $182,000 after purchasing an additional 1,660 shares during the last quarter. Private Management Group Inc. boosted its stake in Inspired Entertainment by 0.8% in the 2nd quarter. Private Management Group Inc. now owns 1,282,590 shares of the company's stock valued at $10,581,000 after purchasing an additional 9,711 shares during the period. Quantinno Capital Management LP boosted its stake in Inspired Entertainment by 30.5% in the 1st quarter. Quantinno Capital Management LP now owns 42,145 shares of the company's stock valued at $300,000 after purchasing an additional 9,858 shares during the period. Diversified Trust Co acquired a new position in Inspired Entertainment in the 3rd quarter valued at $42,000. Finally, Focused Alpha LLC acquired a new position in Inspired Entertainment in the 2nd quarter valued at $112,000. 77.38% of the stock is owned by institutional investors.

Inspired Entertainment Stock Performance

The stock has a market capitalization of $122.62 million, a price-to-earnings ratio of -17.88 and a beta of 1.16. The business has a fifty day simple moving average of $4.11 and a 200 day simple moving average of $6.55.

Inspired Entertainment (NASDAQ:INSE - Get Free Report) last issued its quarterly earnings results on Thursday, November 5th. The company reported $0.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.02 by $0.08. The business had revenue of $61.40 million during the quarter, compared to analysts' expectations of $64.52 million. Inspired Entertainment had a negative return on equity of 30.08% and a negative net margin of 2.96%. On average, sell-side analysts forecast that Inspired Entertainment, Inc. will post 0.12 earnings per share for the current fiscal year.

About Inspired Entertainment

Inspired Entertainment, Inc. is a business-to-business gaming technology company that develops and supplies content, software, hardware and related services for regulated gaming, betting and leisure markets. Its customers include bookmakers, casinos, gaming operators, lotteries and other entertainment venues. The company's offerings include gaming terminals and server-based gaming systems, digital casino games, virtual sports and other simulated sporting events, as well as interactive gaming solutions for online and mobile platforms.

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