Lancaster Investment Management Cuts Position in Flutter Entertainment PLC $FLUT

Key Points

• Lancaster Investment Management cut its stake in Flutter by 19.1% in Q4, selling 30,405 shares to hold 128,988 shares worth about $27.74 million, which represents ~14.2% of the firm's holdings and is its third-largest position.
• Quarterly results missed estimates—EPS $1.74 vs. $2.11 expected and revenue $4.74B vs. $4.87B—although revenue rose 24.9% year-over-year; the board also approved a $250M buyback (about 1.3% of shares).
• Insider selling accelerated (CEO and CFO sold shares on March 11; insiders sold 17,834 shares worth ~$1.9M over 90 days) as the stock traded down roughly 4% to $103.54 and shows a negative trailing P/E of -57.52.

Lancaster Investment Management lowered its holdings in shares of Flutter Entertainment PLC (NYSE:FLUT - Free Report) by 19.1% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 128,988 shares of the company's stock after selling 30,405 shares during the period. Flutter Entertainment makes up about 14.2% of Lancaster Investment Management's holdings, making the stock its 3rd biggest position. Lancaster Investment Management owned 0.07% of Flutter Entertainment worth $27,738,000 as of its most recent SEC filing.

Other hedge funds have also added to or reduced their stakes in the company. MassMutual Private Wealth & Trust FSB boosted its holdings in shares of Flutter Entertainment by 219.4% during the 4th quarter. MassMutual Private Wealth & Trust FSB now owns 115 shares of the company's stock worth $25,000 after buying an additional 79 shares in the last quarter. JFS Wealth Advisors LLC bought a new stake in shares of Flutter Entertainment in the 3rd quarter valued at $27,000. JCIC Asset Management Inc. acquired a new position in shares of Flutter Entertainment during the 3rd quarter valued at $32,000. Atlantic Union Bankshares Corp bought a new position in Flutter Entertainment during the third quarter worth $34,000. Finally, ORG Partners LLC boosted its stake in Flutter Entertainment by 43.0% during the third quarter. ORG Partners LLC now owns 143 shares of the company's stock worth $36,000 after acquiring an additional 43 shares in the last quarter.

Flutter Entertainment Trading Down 4.0%

FLUT opened at $103.54 on Thursday. Flutter Entertainment PLC has a fifty-two week low of $99.96 and a fifty-two week high of $313.68. The firm has a market capitalization of $18.15 billion, a PE ratio of -57.52, a P/E/G ratio of 0.73 and a beta of 2.30. The company has a debt-to-equity ratio of 1.31, a current ratio of 0.95 and a quick ratio of 0.95. The company's 50-day moving average is $135.72 and its 200 day moving average is $199.50.

Flutter Entertainment (NYSE:FLUT - Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The company reported $1.74 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.11 by ($0.37). The company had revenue of $4.74 billion for the quarter, compared to analyst estimates of $4.87 billion. Flutter Entertainment had a negative net margin of 1.89% and a positive return on equity of 12.12%. Flutter Entertainment's revenue for the quarter was up 24.9% on a year-over-year basis. During the same quarter last year, the firm posted $2.94 EPS. As a group, research analysts predict that Flutter Entertainment PLC will post 4.17 earnings per share for the current fiscal year.

Flutter Entertainment announced that its Board of Directors has approved a stock buyback plan on Wednesday, March 11th that permits the company to repurchase $250.00 million in shares. This repurchase authorization permits the company to buy up to 1.3% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's board of directors believes its stock is undervalued.

Insider Activity at Flutter Entertainment

In related news, CEO Amy Howe sold 8,895 shares of the stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $105.91, for a total value of $942,069.45. Following the completion of the sale, the chief executive officer directly owned 78,889 shares of the company's stock, valued at approximately $8,355,133.99. This represents a 10.13% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Robert Coldrake sold 4,613 shares of the firm's stock in a transaction on Wednesday, March 11th. The shares were sold at an average price of $106.45, for a total value of $491,053.85. Following the transaction, the chief financial officer owned 10,006 shares in the company, valued at approximately $1,065,138.70. This trade represents a 31.55% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 17,834 shares of company stock valued at $1,900,331 over the last 90 days. Insiders own 0.09% of the company's stock.

Analyst Ratings Changes

Several equities analysts have recently weighed in on the stock. Oppenheimer dropped their price objective on shares of Flutter Entertainment from $280.00 to $210.00 and set an "outperform" rating on the stock in a report on Thursday, February 26th. Susquehanna reaffirmed a "positive" rating and set a $228.00 price target on shares of Flutter Entertainment in a research note on Tuesday, January 27th. Benchmark cut their price target on Flutter Entertainment from $285.00 to $175.00 and set a "buy" rating on the stock in a report on Friday, February 27th. Wells Fargo & Company restated an "equal weight" rating and set a $228.00 price objective (down from $248.00) on shares of Flutter Entertainment in a report on Wednesday, January 14th. Finally, Zacks Research lowered Flutter Entertainment from a "hold" rating to a "strong sell" rating in a research report on Monday, January 19th. Two analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $227.65.

Flutter Entertainment Profile

Flutter Entertainment plc is a global sports betting and gaming company that operates a portfolio of consumer-facing brands and digital platforms. The company's primary activities include online sports betting, casino gaming, poker, and daily fantasy sports, delivered through web and mobile applications as well as retail betting locations in select markets. Flutter focuses on product development, customer acquisition and engagement, and compliance with local gambling regulations across the jurisdictions where it operates.

Flutter's brand portfolio includes well-known names in different regional markets, such as FanDuel in the United States, PokerStars, Betfair, Paddy Power and Sky Betting & Gaming in Europe and elsewhere.

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