TORONTO - Bragg Gaming Group Inc. (NASDAQ: BRAG, TSX: BRAG), a global provider of iGaming content and technology solutions, has reported significant insider share purchases by its management team, suggesting strong confidence in the value of the company's stock. Currently trading at $3.28 with a market capitalization of $81.7 million, the stock has experienced significant volatility, declining over 40% in the past year according to InvestingPro data. The news comes alongside the company's reaffirmation of a positive outlook for 2025, expecting double-digit revenue growth, expanding profit margins, and increased operational leverage, with formal guidance to be provided in early 2025.
CEO Matevž Mazij emphasized the insider purchases as a reflection of the management's belief in Bragg's near-term potential and their commitment to creating shareholder value. InvestingPro analysis indicates the stock is currently undervalued, with a "Fair" overall financial health score of 2.47 out of 5. Subscribers can access 7 additional ProTips and comprehensive valuation metrics through the Pro Research Report. The company aims to enhance liquidity through strategic transactions or other initiatives. Although the strategic review process has concluded, Mazij stated that it has provided valuable insights into improving the company's financial metrics and has reinforced their focus on achieving the targets set for 2025.
Bragg's optimistic 2025 outlook is based on a robust pipeline of opportunities that the company believes will drive momentum into the next year. These projections and the recent insider purchases are considered forward-looking statements and involve risks and uncertainties that could cause actual results to differ.
The company's forward-looking statements are subject to a number of assumptions and factors that could influence the actual outcomes, including regulatory environments, the company's operations, product and service offerings, customer growth, and market expansion efforts.
Bragg Gaming Group operates in various regulated iGaming markets globally, providing exclusive content and technology solutions to both online and land-based gaming operators. The company generates annual revenue of $109.3 million with a solid gross profit margin of 51.2%. For deeper insights into Bragg's financial metrics, growth potential, and expert analysis, access the full InvestingPro Research Report, part of our coverage of over 1,400 US-listed companies. The company's portfolio includes in-house brands such as Wild Streak Gaming, Atomic Slot Lab, and Indigo Magic, and it distributes games built on its technology through the Bragg Hub content delivery platform.
This report is based on a press release statement and contains forward-looking information that is subject to risks and uncertainties. Investors are reminded that forward-looking statements are not guarantees of future performance and actual results may differ materially.
In other recent news, Bragg Gaming Group reported robust Q3 earnings, revealing a 16% increase in year-over-year revenue, and a gross profit increase of 18% to EUR 14 million. The company also announced significant growth in the U.S. market, with a 40% increase in proprietary content revenue. Financial analysis firm, Benchmark, adjusted their stock price target for Bragg Gaming from $8.00 to $4.00, while maintaining a Speculative Buy rating. This adjustment followed the conclusion of a strategic review by Bragg Gaming, which led to the removal of the acquisition premium consideration from the company's valuation.
Bragg Gaming continues to anticipate significant growth opportunities, particularly in the U.S. and Brazil. The company's CEO, Matevz Mazij, concluded a strategic review, affirming that the current strategy remains the best path to enhance shareholder value. The company also maintains its full-year guidance, expecting robust growth in the U.S. and expansion into new markets.
These recent developments reflect Bragg Gaming Group's focus on key markets in the U.S., Canada, Latin America, and Europe, and its plans for expansion into emerging markets. The company's revenue guidance is set at EUR 102 million to EUR 109 million, with adjusted EBITDA expected to be between EUR 15.2 million and EUR 18.5 million.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.