There has been a continuous period of uptrend in the stock price. The International Game Technology has hit a low in the previous trading session. The uptrend began from February 11. It can be assumed that the price can be settled under $16, but a further drop in the rates is expected.
IGT is a well-recognised company that has his headquarters in the UK. They provide an array of services and products in lotteries, sports betting, machine gaming and more. They also have an aspect of interactive gaming. It was noted that after Feb, the share price of the International Game Technology is dwindling from about $12 per share. There have been signs that indicate the weakening of the momentum, as the stock price has been going down.
Did jackpot payments drive the rally?
In a period of about a couple of months, the jackpot transactions came to about $7.7 million. That is from where the bullish run started and continued. Only in December, one of the players won a jackpot worth $1 million. If this was not enough, another member received a jackpot payment of $2 million. Another news surfaced earlier in the year on January 2 that another player had won a humongous jackpot. The prize money this time was about $3.08 million. The company has been at the forefront of launching games and gambling activities to retain the interest of the players. They launched their Wheels of Fortune slot way back in 1999. And, since then they have not looked back in terms of organising and maintaining a high level of jackpot payouts. If statistics are to be believed, they have made a total of $3 billion in terms of just paying jackpots. One should not say that the recent payments were not an indicator of the company’s generosity. They had a tough start in 2016, but aims to climb up the ladder again.
Why IGT different from its existing peers, and if it is a good buy?
Like in most other gaming companies, IGT is also in the business of developing machines and technologies. Most of it is used in sportsbooks and casinos. Their online gaming platforms are also an example of their fine work in the gaming field. In terms of having credibility with respect to creating content for online games, it is a fine choice. Hence, the company sells their technologies, but at the same time also makes money out of it. In addition to that the company also generates additional income from their slot machines and the range of online games they have.
One can consider some gaming softwares as their rivals notably Verint Systems, Clone Algo Technologies and CA Inc. While the presence of these companies are primarily more in terms of software business, they also have quite a major stake in applications, cyber security and intelligence. One of the reasons why International Game Technology has not been able to cover up their costs because they incur a lot of operational costs and therefore that can lead to severe financial issues in the long run.