It makes sense and dollars to buy Playtika Holding Corp. (PLTK) stock

Playtika Holding Corp. (NASDAQ: PLTK) stock jumped 7.48% on Friday to $10.20 against a previous-day closing price of $9.49. With 1.41 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.21 million shares. During the session, the Electronic Gaming & Multimedia company that operates in wider Communication Services sector, reached to the highest price of $10.32 whereas the lowest price it dropped to was $9.61. The 52-week range on PLTK shows that it touched its highest point at $21.45 and its lowest point at $7.81 during that stretch. It currently has a 1-year price target of $15.60.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of PLTK was up-trending over the past week, with a rise of 7.48%, but this was up by 23.04% over a month. Three-month performance surged to 7.82% while six-month performance fell -21.54%. The stock lost -46.96% in the past year, while it has gained 19.86% so far this year. A look at the trailing 12-month EPS for PLTK yields 0.70 with Next year EPS estimates of 0.83. For the next quarter, that number is 0.17. This implies an EPS growth rate of 215.10% for this year and 31.07% for next year. EPS is expected to grow by 10.10% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 30.60%.

Float and Shares Shorts:

At present, 412.70 million PLTK shares are outstanding with a float of 45.98 million shares on hand for trading. On Oct 13, 2022, short shares totaled 13.02 million, which was 3.61% higher than short shares on Sep 14, 2022. In addition to Mr. Robert Antokol as the firm’s Co-Founder, Chairperson of the Board of Directors & CEO, Mr. Craig J. Abrahams serves as its Pres & CFO.

Institutional Ownership:

Through their ownership of 17.36% of PLTK’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 92.19% of PLTK, in contrast to 5.03% held by mutual funds. Shares owned by individuals account for 15.79%. As the largest shareholder in PLTK with 2.04% of the stake, Millennium Management LLC holds 7,375,777 shares worth 7,375,777. A second-largest stockholder of PLTK, Senvest Management LLC, holds 6,724,067 shares, controlling over 1.86% of the firm’s shares. AQR Capital Management LLC is the third largest shareholder in PLTK, holding 4,536,744 shares or 1.26% stake. With a 0.65% stake in PLTK, the Government Pension Fund – Global is the largest stakeholder. A total of 2,333,978 shares are owned by the mutual fund manager. The Pacer Fds. Tr. – US Cash Cows 100, which owns about 0.54% of PLTK stock, is the second-largest Mutual Fund holder. It holds 1,951,475 shares valued at 16.61 million. Vanguard Extended Market Index Fu holds 0.35% of the stake in PLTK, owning 1,251,639 shares worth 10.65 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for PLTK since 11 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With PLTK analysts setting a high price target of $29.00 and a low target of $9.00, the average target price over the next 12 months is $15.60. Based on these targets, PLTK could surge 184.31% to reach the target high and fall by -11.76% to reach the target low. Reaching the average price target will result in a growth of 52.94% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. PLTK will report FY 2022 earnings on 02/23/2024. Analysts have provided yearly estimates in a range of $0.74 being high and $0.59 being low. For PLTK, this leads to a yearly average estimate of $0.63. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Playtika Holding Corp. surprised analysts by -$0.00 when it reported $0.17 EPS against a consensus estimate of $0.17. The surprise factor in the prior quarter was -$0.10. Based on analyst estimates, the high estimate for the next quarter is $0.23 and the low estimate is $0.13. The average estimate for the next quarter is thus $0.17.

Summary of Insider Activity:

Insiders traded PLTK stock several times over the past three months with 8 Buys and 1 Sells. In these transactions, 1,690,000 shares were bought while 15,262 shares were sold. The number of buy transactions has increased to 19 while that of sell transactions has risen to 5 over the past year. The total number of shares bought during that period was 1,751,748 while 27,960,712 shares were sold.

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