LAS VEGAS—Scott Edward Peterson, the Chief Financial Officer of PLAYSTUDIOS, Inc. (NASDAQ:MYPS), recently executed a sale of company shares, according to a recent SEC filing. On October 16, Peterson sold 25,000 shares of Class A Common Stock at an average price of $1.50 per share, resulting in a total transaction value of $37,500. This transaction was conducted under a pre-established Rule 10b5-1 trading plan.
Following this sale, Peterson, through the Scott E Peterson Trust, holds 583,998 shares of PLAYSTUDIOS. Additionally, Peterson's spouse holds 33,874 shares, although he disclaims beneficial ownership of these shares.
Peterson's transaction was part of a broader set of holdings, including various stock options and restricted stock units, which remain unchanged following this sale.
In other recent news, PlayStudios has experienced a mix of strategic growth and financial challenges. The company reported a 7% decrease in net revenues year-over-year, amounting to $72.6 million, in its Q2 2024 earnings. Despite this, the company saw a significant increase in daily active users and launched new games successfully. PlayStudios' consolidated adjusted EBITDA dropped to $14.1 million, though adjusted EBITDA margins saw improvement.
Oppenheimer has maintained its Outperform rating on PlayStudios, anticipating growth in its casual game portfolio and the expansion of the Tetris franchise. However, the company's stock rating was downgraded from a Buy to a Hold status by Craig-Hallum due to growing competition in the iGaming industry. PlayStudios' revenue guidance for 2024 was revised downwards, reflecting a shift from expected growth to a potential decline.
Despite these challenges, PlayStudios maintains a strong balance sheet with $106 million in cash reserves and continues to make strategic decisions regarding capital allocation. These are the recent developments for PlayStudios.
InvestingPro Insights
The recent share sale by PLAYSTUDIOS' CFO Scott Edward Peterson comes at a time when the company's stock is trading near its 52-week low, according to InvestingPro data. This sale occurred at an average price of $1.50 per share, which is significantly below the fair value of $3.50 suggested by analyst targets.
Despite the recent insider sale, InvestingPro Tips highlight some positive aspects of PLAYSTUDIOS' financial position. The company holds more cash than debt on its balance sheet, indicating a strong liquidity position. Additionally, PLAYSTUDIOS' liquid assets exceed short-term obligations, suggesting financial stability in the near term.
However, investors should note that PLAYSTUDIOS has not been profitable over the last twelve months, with a negative P/E ratio of -11.25. On a more optimistic note, analysts predict the company will be profitable this year, which could potentially improve investor sentiment.
For those interested in a deeper analysis, InvestingPro offers 12 additional tips for PLAYSTUDIOS, providing a more comprehensive view of the company's financial health and market position.
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