Playtika Holding Corp . (NASDAQ:PLTK) has seen significant stock sales by its major shareholders, according to recent filings with the Securities and Exchange Commission. The sales, which took place on December 12 and 13, involved a total of 661,068 shares of common stock, resulting in a total transaction value of approximately $5.26 million. The timing is notable as the stock has declined over 11% in the past week, according to InvestingPro data.
The shares were sold at prices ranging from $7.7767 to $8.1717 per share. These transactions were executed by entities including Playtika Holding UK II Ltd, Chongqing Cibi Business Information Consultancy Co. Ltd., and Alpha Frontier Ltd, among others. These entities are associated with Giant Network Group Co. Ltd., which holds significant economic interests in Playtika. The company maintains strong financial health with a current ratio of 3.25, indicating robust liquidity.
Following these transactions, the shareholders collectively retained approximately 200.63 million shares. The sales were made for the economic benefit of a non-affiliated entity with an interest in about 1% of Playtika's outstanding shares. InvestingPro analysis suggests the stock is currently undervalued, with a strong free cash flow yield of 17%. For deeper insights into Playtika's valuation and access to additional ProTips, subscribers can explore the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Playtika Holding Corp. has reported mixed results for its Q3 earnings, with revenues of $620.8 million and net income of $39.3 million, indicating a slight decline in revenues and a significant drop in net income. The company's direct-to-consumer (DTC) segment, however, showed growth, generating $174.4 million in revenue. In light of these results, Playtika adjusted its full-year revenue guidance to between $2.505 billion and $2.52 billion, and raised its credit adjusted EBITDA guidance to between $755 million and $765 million.
In a strategic move, Playtika has also announced the acquisition of SuperPlay, a mobile gaming company known for its successful titles Dice Dreams and Domino Dreams. The acquisition, which includes two additional games in development, is expected to drive significant growth for Playtika by enhancing its game portfolio. SuperPlay's proven expertise in production value, marketing, and analytics is seen as a potential catalyst for future innovations within Playtika's game development.
These recent developments reflect a mix of challenges and strategic initiatives aimed at long-term growth for Playtika. The company's commitment to diversifying its portfolio and refining its approach to monetization, as evidenced by the SuperPlay acquisition and the growth of the DTC segment, suggest potential areas for recovery and growth.
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