Devolver Digital (LON:DEVO) Trading Up 8% – Still a Buy?

Devolver Digital, Inc. (LON:DEVO)’s stock price traded up 8% during mid-day trading on Friday . The company traded as high as GBX 7 and last traded at GBX 6.59. Approximately 21,569,664 shares were traded during trading, an increase of 6,576% from the average daily volume of 323,070 shares. The stock had previously closed at GBX 6.10.

Devolver Digital News Roundup

Here are the key news stories impacting Devolver Digital this week:

• Positive Sentiment: Take-private proposal creates potential valuation support. Devolver said it intends to leave London’s AIM market, roughly five years after going public. A transaction could provide shareholders with a defined exit price and potentially a premium to the depressed market valuation. However, terms, funding details and the final offer price have not been disclosed, and shareholder and regulatory approvals may be required. Devolver Digital intends to go private
• Positive Sentiment: Ball X Pit has surpassed two million copies sold. The strong performance of the roguelite supports Devolver’s publishing strategy and provides evidence that successful releases can generate meaningful revenue. The game is also receiving a final free update, which could help sustain engagement and sales. Ball X Pit reaches two million sales
• Neutral Sentiment: Serious Sam: Shatterverse launches August 31. The upcoming release for PlayStation 5, Xbox Series and PC adds a near-term potential revenue catalyst, but launch performance and critical reception remain uncertain. Serious Sam: Shatterverse launch announcement
• Negative Sentiment: Delisting would reduce public-market liquidity and transparency. Investors may lose the ability to trade DEVO on AIM if the proposal proceeds, while the lack of announced terms leaves uncertainty over whether shareholders will receive an attractive return. The plan also highlights the company’s prolonged share-price decline and broader challenges facing the games industry. Devolver Digital wants to go private

Analyst Ratings Changes

Several brokerages have weighed in on DEVO. Berenberg Bank reaffirmed a “buy” rating and set a GBX 28 price target on shares of Devolver Digital in a report on Wednesday, July 1st. Shore Capital Group restated a “buy” rating and set a GBX 27 price objective on shares of Devolver Digital in a research report on Friday, June 26th. Two analysts have rated the stock with a Buy rating, According to MarketBeat.com, the company presently has a consensus rating of “Buy” and a consensus price target of GBX 27.50.

Devolver Digital Stock Up 8.0%

The company has a current ratio of 1.78, a quick ratio of 4.85 and a debt-to-equity ratio of 0.57. The firm has a market capitalization of £32.67 million, a P/E ratio of -1.94 and a beta of -0.43. The company has a 50 day simple moving average of GBX 18.15 and a two-hundred day simple moving average of GBX 21.55.

About Devolver Digital

Devolver Digital Inc develops, publishes video games for PC and mobile devices in the United States and internationally. Devolver Digital Inc was incorporated in 2008 and is based in Austin, Texas.