Playtika (NASDAQ:PLTK) Shares Climb 13.1% Following Better-Than-Expected Earnings

Key Points

• Playtika shares rose 13.1% after earnings, reaching an intraday high of $2.50; trading volume was 69% below its average.
• Quarterly EPS was $0.32, beating the $0.22 consensus, and revenue of $673.8 million exceeded estimates of $667 million. Revenue was nevertheless down 0.1% year over year, and the company reported a negative net margin.
• Analysts’ consensus rating is Hold, with an average price target of $3.55.

Shares of Playtika Holding Corp. (NASDAQ:PLTK - Get Free Report) traded up 13.1% during mid-day trading on Thursday following a stronger than expected earnings report. The stock traded as high as $2.50 and last traded at $2.3980. 480,286 shares traded hands during trading, a decline of 69% from the average daily volume of 1,527,095 shares. The stock had previously closed at $2.12.

The company reported $0.32 EPS for the quarter, beating analysts' consensus estimates of $0.22 by $0.10. The business had revenue of $673.80 million for the quarter, compared to analyst estimates of $666.98 million. Playtika had a negative return on equity of 65.82% and a negative net margin of 9.89%. The firm's revenue for the quarter was down .1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.11 EPS.

Analyst Upgrades and Downgrades

PLTK has been the subject of a number of analyst reports. Morgan Stanley set a $4.25 price target on shares of Playtika in a research note on Monday, August 10th. The Goldman Sachs Group set a $3.75 price objective on Playtika in a research note on Friday, August 7th. Wall Street Zen lowered Playtika from a "buy" rating to a "hold" rating in a report on Saturday, August 22nd. Wedbush increased their price target on Playtika from $3.00 to $4.00 and gave the company a "neutral" rating in a research report on Monday, August 3rd. Finally, Roth Capital cut their price objective on Playtika from $3.50 to $2.75 and set a "neutral" rating for the company in a research report on Monday, August 31st. Two research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $3.55.

Institutional Investors Weigh In On Playtika

A number of hedge funds have recently made changes to their positions in PLTK. International Assets Investment Management LLC boosted its stake in shares of Playtika by 89.2% during the third quarter. International Assets Investment Management LLC now owns 22,742 shares of the company's stock valued at $49,000 after purchasing an additional 10,725 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. bought a new position in Playtika during the third quarter worth $52,000. SummerHaven Investment Management LLC acquired a new position in shares of Playtika in the 3rd quarter valued at about $217,000. Williams & Novak Wealth Management LLC boosted its holdings in shares of Playtika by 12.0% during the 3rd quarter. Williams & Novak Wealth Management LLC now owns 110,035 shares of the company's stock worth $235,000 after buying an additional 11,830 shares in the last quarter. Finally, Tidal Investments LLC boosted its stake in Playtika by 153.0% during the second quarter. Tidal Investments LLC now owns 353,984 shares of the company's stock worth $1,317,000 after acquiring an additional 214,093 shares in the last quarter. 11.94% of the stock is currently owned by institutional investors and hedge funds.

Playtika Stock Performance

The company has a market capitalization of $932.57 million, a price-to-earnings ratio of -3.35 and a beta of 1.08. The company has a 50 day moving average price of $2.19 and a 200 day moving average price of $3.06.

Playtika Company Profile

Playtika Holding Corp. is a digital entertainment company that develops and operates free-to-play mobile and web games. Its business focuses on social casino, casual, and other interactive gaming experiences that generate revenue through in-game purchases and advertising.

Playtika's portfolio has included widely recognized titles such as Slotomania, Bingo Blitz, House of Fun, Caesars Slots, and World Series of Poker. The company uses data analytics, live-operations capabilities, and ongoing content updates to engage players and support the long-term performance of its games.

Founded in 2010, Playtika initially helped pioneer free-to-play social casino gaming on social networks and later expanded into mobile platforms.

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