Inspired Entertainment (NASDAQ:INSE) Stock Price Down 5.5% - Here's What Happened

Key Points

• Inspired Entertainment shares fell 5.5% to about $3.75 in mid-day trading, with volume down 55% from the average session.
• Analyst sentiment is bearish: recent firms downgraded the stock, resulting in a consensus rating of “Reduce”, despite a listed consensus price target of $20.00.
• The company beat quarterly EPS estimates, reporting $0.05 versus expectations of $0.03, but revenue missed forecasts and the business posted negative net margins and return on equity.

Inspired Entertainment, Inc. (NASDAQ:INSE - Get Free Report) shares dropped 5.5% during mid-day trading on Wednesday. The stock traded as low as $3.74 and last traded at $3.75. 189,749 shares traded hands during trading, a decline of 55% from the average session volume of 420,187 shares. The stock had previously closed at $3.97.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on INSE. BWS Financial cut shares of Inspired Entertainment from a "buy" rating to a "neutral" rating in a research note on Tuesday, September 29th. Zacks Research cut shares of Inspired Entertainment from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, July 28th. Finally, Weiss Ratings reaffirmed a "sell (d)" rating on shares of Inspired Entertainment in a report on Friday, September 4th. Two equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Inspired Entertainment has a consensus rating of "Reduce" and a consensus price target of $20.00.

Inspired Entertainment Stock Down 5.5%

The company has a market capitalization of $98.85 million, a PE ratio of -11.36 and a beta of 1.23. The firm's 50 day simple moving average is $5.40 and its 200 day simple moving average is $6.63.

Inspired Entertainment (NASDAQ:INSE - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $0.05 earnings per share for the quarter, beating the consensus estimate of $0.03 by $0.02. Inspired Entertainment had a negative net margin of 3.34% and a negative return on equity of 30.08%. The business had revenue of $60.80 million for the quarter, compared to the consensus estimate of $64.04 million. As a group, sell-side analysts predict that Inspired Entertainment, Inc. will post 0.2 EPS for the current fiscal year.

Institutional Trading of Inspired Entertainment

Institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. bought a new position in shares of Inspired Entertainment during the second quarter valued at approximately $19,175,000. Jupiter Topco LLC purchased a new position in Inspired Entertainment during the 2nd quarter valued at $11,047,000. Private Management Group Inc. boosted its holdings in Inspired Entertainment by 0.8% during the 2nd quarter. Private Management Group Inc. now owns 1,282,590 shares of the company's stock valued at $10,581,000 after acquiring an additional 9,711 shares during the period. Janus Henderson Group PLC boosted its holdings in Inspired Entertainment by 2.0% during the 1st quarter. Janus Henderson Group PLC now owns 1,296,095 shares of the company's stock valued at $9,241,000 after acquiring an additional 25,820 shares during the period. Finally, Potomac Capital Management Inc. bought a new position in Inspired Entertainment in the 4th quarter valued at $6,089,000. Institutional investors own 77.38% of the company's stock.

Inspired Entertainment Company Profile

Inspired Entertainment, Inc NASDAQ: INSE is a business-to-business gaming technology company that develops and supplies content, platforms and systems for gaming, betting and leisure operators. Its offerings are designed for use across retail betting shops, gaming venues, casinos, lotteries and online gaming channels.

The company's products include virtual sports and other digital gaming content, electronic gaming machines, server-based gaming systems, online casino games and mobile gaming solutions.

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