Flutter Entertainment (NYSE:FLUT) Rating Increased to Hold at Zacks Research

Key Points

• Zacks Research upgraded Flutter Entertainment from “strong sell” to “hold,” while other analysts remain mixed but overall the stock still carries a Moderate Buy consensus rating and a $179.04 average target price.
• Flutter reported better-than-expected quarterly results, with EPS of $1.22 beating estimates and revenue of $4.30 billion topping forecasts; revenue also rose 17.4% year over year.
• The company authorized a $250 million share repurchase program, a move that typically signals management believes the stock may be undervalued.

Flutter Entertainment (NYSE:FLUT - Get Free Report) was upgraded by equities researchers at Zacks Research from a "strong sell" rating to a "hold" rating in a research note issued to investors on Monday,Zacks.com reports.

Several other research firms have also recently commented on FLUT. Kepler Capital Markets cut Flutter Entertainment from a "strong-buy" rating to a "hold" rating in a report on Monday, March 16th. BNP Paribas Exane began coverage on Flutter Entertainment in a report on Thursday, May 14th. They issued an "underperform" rating and a $80.00 target price for the company. Benchmark decreased their target price on shares of Flutter Entertainment from $175.00 to $132.00 and set a "buy" rating on the stock in a research report on Thursday, May 7th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Flutter Entertainment in a research note on Wednesday, May 27th. Finally, Truist Financial cut their price target on shares of Flutter Entertainment from $140.00 to $130.00 and set a "buy" rating for the company in a report on Thursday, May 7th. Three equities research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, nine have given a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, Flutter Entertainment currently has a consensus rating of "Moderate Buy" and a consensus target price of $179.04.

Flutter Entertainment Stock Performance

Shares of FLUT opened at $108.21 on Monday. The stock has a market capitalization of $18.82 billion, a P/E ratio of -50.56, a P/E/G ratio of 1.39 and a beta of 1.31. The company has a debt-to-equity ratio of 1.27, a quick ratio of 0.90 and a current ratio of 0.90. Flutter Entertainment has a 1 year low of $91.52 and a 1 year high of $313.68. The company's fifty day moving average is $101.88 and its two-hundred day moving average is $130.57.

Flutter Entertainment (NYSE:FLUT - Get Free Report) last issued its earnings results on Wednesday, May 6th. The company reported $1.22 earnings per share for the quarter, beating the consensus estimate of $1.09 by $0.13. The business had revenue of $4.30 billion for the quarter, compared to the consensus estimate of $4.24 billion. Flutter Entertainment had a negative net margin of 2.20% and a positive return on equity of 11.60%. The business's quarterly revenue was up 17.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.59 earnings per share. On average, sell-side analysts predict that Flutter Entertainment will post 5 earnings per share for the current year.

Flutter Entertainment announced that its board has approved a stock repurchase plan on Wednesday, March 11th that allows the company to repurchase $250.00 million in shares. This repurchase authorization allows the company to reacquire up to 1.3% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling at Flutter Entertainment

In related news, CEO Jeremy Peter Jackson sold 3,084 shares of the firm's stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $98.13, for a total value of $302,632.92. Following the sale, the chief executive officer directly owned 74,326 shares of the company's stock, valued at approximately $7,293,610.38. This trade represents a 3.98% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director John A. Bryant bought 1,950 shares of the firm's stock in a transaction dated Friday, May 8th. The shares were purchased at an average price of $102.86 per share, with a total value of $200,577.00. Following the acquisition, the director directly owned 9,235 shares in the company, valued at approximately $949,912.10. This trade represents a 26.77% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders bought 10,453 shares of company stock worth $1,045,526 and sold 5,994 shares worth $577,293. Insiders own 0.13% of the company's stock.

Hedge Funds Weigh In On Flutter Entertainment

A number of institutional investors and hedge funds have recently bought and sold shares of FLUT. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Flutter Entertainment by 5.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,311 shares of the company's stock worth $290,000 after purchasing an additional 69 shares during the last quarter. Sivia Capital Partners LLC bought a new position in shares of Flutter Entertainment during the second quarter worth about $405,000. Creative Planning acquired a new stake in shares of Flutter Entertainment in the second quarter valued at approximately $296,000. Northwestern Mutual Wealth Management Co. increased its position in Flutter Entertainment by 246.3% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 187 shares of the company's stock valued at $53,000 after acquiring an additional 133 shares during the period. Finally, EverSource Wealth Advisors LLC raised its stake in shares of Flutter Entertainment by 74.6% during the second quarter. EverSource Wealth Advisors LLC now owns 248 shares of the company's stock valued at $71,000 after purchasing an additional 106 shares in the last quarter.

About Flutter Entertainment

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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