JPMorgan Chase & Co. Has Lowered Expectations for Flutter Entertainment (NYSE:FLUT) Stock Price

Key Points

• JPMorgan lowered Flutter Entertainment’s price target from $114 to $110 while maintaining a neutral rating, implying roughly 41% upside from the prior close.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and an average price target of $142.70, despite several recent target reductions.
• Flutter shares rose 0.6% to $77.81, while the company’s latest quarterly results missed earnings expectations but exceeded revenue estimates; proposed UK and Ireland restructuring and up to 1,400 job cuts highlight pressure from rising gambling taxes.

Flutter Entertainment (NYSE:FLUT - Get Free Report) had its price target lowered by analysts at JPMorgan Chase & Co. from $114.00 to $110.00 in a report issued on Tuesday, Benzinga reports. The brokerage currently has a "neutral" rating on the stock. JPMorgan Chase & Co.'s target price suggests a potential upside of 41.36% from the company's previous close.

A number of other research firms have also recently commented on FLUT. BTIG Research decreased their price target on Flutter Entertainment from $113.00 to $110.00 and set a "buy" rating for the company in a research note on Thursday, October 1st. Wells Fargo & Company dropped their price target on Flutter Entertainment from $137.00 to $112.00 and set an "equal weight" rating on the stock in a research note on Thursday, August 6th. Barclays cut their price objective on shares of Flutter Entertainment from $151.00 to $133.00 and set an "overweight" rating on the stock in a report on Thursday, August 6th. Freedom Capital raised shares of Flutter Entertainment to a "hold" rating in a research report on Monday, June 22nd. Finally, Citigroup upgraded shares of Flutter Entertainment from a "neutral" rating to a "buy" rating and lowered their target price for the stock from $93.00 to $91.00 in a research note on Wednesday, October 7th. Two analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, nine have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $142.70.

Flutter Entertainment Stock Up 0.6%

Shares of FLUT traded up $0.43 during midday trading on Tuesday, hitting $77.81. 1,203,379 shares of the company's stock traded hands, compared to its average volume of 3,285,130. Flutter Entertainment has a 1 year low of $72.56 and a 1 year high of $255.26. The firm's fifty day moving average is $90.46 and its 200-day moving average is $98.94. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 1.32. The stock has a market capitalization of $13.50 billion, a price-to-earnings ratio of -18.12, a price-to-earnings-growth ratio of 2.43 and a beta of 1.39.

Flutter Entertainment (NYSE:FLUT - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.49 earnings per share for the quarter, missing analysts' consensus estimates of $0.54 by ($0.05). Flutter Entertainment had a positive return on equity of 7.27% and a negative net margin of 4.39%. The business had revenue of $4.33 billion during the quarter, compared to analyst estimates of $4.24 billion. During the same period in the previous year, the business earned $2.95 EPS. The firm's revenue for the quarter was up 3.3% compared to the same quarter last year. As a group, sell-side analysts anticipate that Flutter Entertainment will post 3.48 earnings per share for the current year.

Insider Transactions at Flutter Entertainment

In related news, CEO Jeremy Jackson sold 2,112 shares of Flutter Entertainment stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $93.32, for a total transaction of $197,091.84. Following the completion of the sale, the chief executive officer owned 72,214 shares of the company's stock, valued at $6,739,010.48. The trade was a 2.84% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Don Liu sold 565 shares of the company's stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $97.86, for a total value of $55,290.90. Following the completion of the sale, the insider owned 20,441 shares in the company, valued at approximately $2,000,356.26. This represents a 2.69% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 6,681 shares of company stock valued at $644,214. 0.13% of the stock is owned by company insiders.

Institutional Trading of Flutter Entertainment

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Capricorn Fund Managers Ltd purchased a new stake in shares of Flutter Entertainment in the first quarter valued at approximately $3,670,000. Fjarde AP Fonden Fourth Swedish National Pension Fund lifted its position in shares of Flutter Entertainment by 53.3% during the 1st quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 64,054 shares of the company's stock valued at $6,530,000 after buying an additional 22,270 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its position in shares of Flutter Entertainment by 286.2% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 52,805 shares of the company's stock valued at $5,383,000 after buying an additional 39,133 shares in the last quarter. Sei Investments Co. lifted its position in shares of Flutter Entertainment by 28.7% during the 1st quarter. Sei Investments Co. now owns 74,851 shares of the company's stock valued at $7,631,000 after buying an additional 16,682 shares in the last quarter. Finally, Delta Global Management LP acquired a new stake in Flutter Entertainment in the 1st quarter valued at $1,461,000.

Key Stories Impacting Flutter Entertainment

Here are the key news stories impacting Flutter Entertainment this week:

• Positive Sentiment: The restructuring could reduce operating costs and help offset higher tax expenses, potentially supporting margins and cash flow over time. Flutter Entertainment announces restructure of UKI business
• Neutral Sentiment: Flutter said the changes affect its UK and Ireland business, with the proposed reductions representing a major organizational overhaul. The company is expected to provide further details on implementation and financial impacts. Betting giant Flutter to cut up to 1,400 jobs
• Negative Sentiment: Up to 1,400 employees could lose their jobs, highlighting the severity of the cost pressure facing Flutter’s core UKI operations. The cuts may also create restructuring costs and execution risks before savings are realized. Flutter Entertainment to cut up to 1,400 UK and Ireland jobs
• Negative Sentiment: The announcement underscores concern about recently increased or forthcoming UK gambling taxes, which could pressure Flutter’s revenue, profitability and customer economics in the region. Investors may view the need for such substantial cuts as evidence that the UK market outlook has deteriorated. Flutter to cut up to 1,400 jobs amid UK tax pressures

Flutter Entertainment Company Profile

Flutter Entertainment plc is a global sports betting and online gaming company headquartered in Dublin, Ireland. The company operates a portfolio of betting, gaming, poker and daily fantasy sports brands, serving customers through online platforms, mobile applications and, in some markets, retail locations.

Its principal brands include FanDuel in the United States, Paddy Power and Betfair in the United Kingdom and Ireland, Sky Bet in the United Kingdom, PokerStars internationally, and Sisal and SNAI in Italy.

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