Scott Edward Peterson, the Chief Financial Officer of PLAYSTUDIOS, Inc. (NASDAQ:MYPS), recently sold a portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Peterson sold 25,000 shares of Class A Common Stock on November 18, 2024. The shares were sold at an average price of $1.736, totaling approximately $43,400.
After this transaction, Peterson holds 558,998 shares indirectly through the Scott E Peterson Trust. The sale was conducted under a pre-established Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined schedule for selling stocks. This plan was adopted on June 13, 2024, and had been previously disclosed in the company's quarterly report filed in August.
Peterson's spouse also holds 33,874 shares, though Peterson disclaims beneficial ownership of these shares. Additionally, Peterson maintains various derivative securities, including Restricted Stock Units and Performance Stock Units, which are contingent on future vesting and performance criteria.
In other recent news, PlayStudios has reported mixed Q3 results, with revenues declining by 6% year-over-year to $71.2 million, while the adjusted EBITDA increased by 8% to $14.6 million. Amid a significant restructuring plan, the company reduced its workforce by 30% and suspended certain games, expecting to save between $25 million to $30 million annually. Macquarie reiterated an Outperform rating for PlayStudios and maintained a $3.00 price target, following the company's earnings which surpassed expectations.
In addition to these developments, PlayStudios is entering the sweepstakes casino market with an initial offering planned for the first half of 2025. This move is seen as a potential counter to industry challenges the company has faced. However, Macquarie has not included potential gains from this initiative in its current projections, pending further details.
Furthermore, PlayStudios is actively exploring merger and acquisition opportunities, supported by over $100 million in net cash. The company has also shown confidence by restarting its share repurchase program, buying back nearly 10% of its stock this year. These are among the recent developments as the company navigates industry pressures and performance concerns with some of its games.
InvestingPro Insights
PLAYSTUDIOS, Inc. (NASDAQ:MYPS) has been experiencing some interesting financial dynamics that provide context to CFO Scott Edward Peterson's recent stock sale. According to InvestingPro data, the company's market capitalization stands at $211.34 million, with a price-to-book ratio of 0.76 as of the last twelve months ending Q3 2024. This relatively low valuation multiple suggests the stock might be undervalued compared to its book value.
Despite the recent insider sale, there are positive signals for PLAYSTUDIOS. An InvestingPro Tip indicates that management has been aggressively buying back shares, which often signals confidence in the company's future prospects. Additionally, the company holds more cash than debt on its balance sheet, providing financial flexibility in a challenging market environment.
It's worth noting that PLAYSTUDIOS has shown a strong return over the last month, with a 21.99% price total return. This recent performance might have influenced the timing of Peterson's stock sale. However, the company is not currently profitable, with a negative P/E ratio of -9.6 for the last twelve months ending Q3 2024.
Interestingly, analysts predict that PLAYSTUDIOS will be profitable this year, which could be a turning point for the company's financial health. This projection aligns with another InvestingPro Tip suggesting that net income is expected to grow this year.
For investors seeking more comprehensive insights, InvestingPro offers 11 additional tips for PLAYSTUDIOS, providing a deeper understanding of the company's financial position and future outlook.
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