There has seemingly been no greater influence on share prices in recent history than the Covid-19 pandemic. The travel, hospitality and entertainment industry have seen share prices almost wiped, whereas the likes of Amazon and Tesla, amongst others, have seen their price increase to record levels.
One particular share capital that has gone under the radar is that of Playtech – the software provider that powers a vast array of online casino games, and holds a huge chunk of market share in the online casino world.
After an initial dip when the pandemic began, the firm has seen a substantial rise from a 1-year low of £1.40, to a current high of £4.40. As a result, Playtech is one of the strongest stocks on the market, despite losses in revenue over that period. That said, when accounting for extraordinary circumstances, net revenue is actually up.
According to Stockopedia, the firm has 3 buy recommendations, 2 hold recommendations and no sell recommendations.
Moran Weizer, the firm’s CEO purchased £180,000 worth of shares and could be one of the catalysts that has driven up price so dramatically over the past year. Furthermore, and in addition to this, there has been relatively little insider sales, resulting in overall market confidence and a rise in stock.
That sad, it isn’t all positive for investors looking to purchase. Although net earnings are forecast to grow over 50% in the year, interest payments on debt are still not well covered by earnings. As a result, this could lead to an element of stability returning in the market, and the price may settle at something more indicative of true market value.