Flutter Entertainment (NYSE:FLUT) Reaches New 1-Year Low - Here's Why

Key Points

• Flutter Entertainment (FLUT) hit a new 52-week low, trading as low as $93.58 and ending the day down about 7.1% amid heavy volume. The stock is now well below its 50-day and 200-day moving averages.
• Analysts remain mixed but mostly constructive, with a Moderate Buy consensus and an average price target of $194.23. Several firms recently cut targets, though Deutsche Bank reiterated a buy rating with a $167 target.
• The company reported stronger-than-expected quarterly results, including EPS of $1.22 versus $1.09 expected and revenue of $4.30 billion, up 17.4% year over year. Flutter also authorized a $250 million share repurchase plan, signaling management may see value in the stock.

Flutter Entertainment PLC (NYSE:FLUT - Get Free Report)'s share price hit a new 52-week low during trading on Tuesday . The company traded as low as $93.58 and last traded at $94.0140, with a volume of 4551171 shares changing hands. The stock had previously closed at $101.19.

Analysts Set New Price Targets

A number of analysts have recently commented on the company. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $167.00 price target on shares of Flutter Entertainment in a report on Friday. Sanford C. Bernstein dropped their target price on Flutter Entertainment from $125.00 to $115.00 and set a "market perform" rating on the stock in a report on Thursday. Canaccord Genuity Group dropped their target price on Flutter Entertainment from $270.00 to $220.00 and set a "buy" rating on the stock in a report on Monday, March 2nd. Susquehanna dropped their target price on Flutter Entertainment from $160.00 to $143.00 and set a "positive" rating on the stock in a report on Tuesday, March 31st. Finally, BTIG Research dropped their target price on Flutter Entertainment from $137.00 to $126.00 and set a "buy" rating on the stock in a report on Thursday, May 7th. Two analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $194.23.

Flutter Entertainment Stock Down 7.1%

The firm has a market cap of $16.36 billion, a P/E ratio of -43.93, a price-to-earnings-growth ratio of 0.84 and a beta of 1.58. The company has a quick ratio of 0.90, a current ratio of 0.90 and a debt-to-equity ratio of 1.27. The firm has a fifty day moving average of $106.57 and a 200-day moving average of $163.84.

Flutter Entertainment (NYSE:FLUT - Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The company reported $1.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.09 by $0.13. The firm had revenue of $4.30 billion for the quarter, compared to analyst estimates of $4.24 billion. Flutter Entertainment had a positive return on equity of 11.60% and a negative net margin of 2.20%.The business's revenue for the quarter was up 17.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.59 earnings per share. On average, equities research analysts anticipate that Flutter Entertainment PLC will post 5.14 earnings per share for the current year.

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

Insider Buying and Selling at Flutter Entertainment

In other Flutter Entertainment news, CEO Jeremy Peter Jackson sold 4,326 shares of the company's stock in a transaction that occurred on Wednesday, March 11th. The stock was sold at an average price of $108.00, for a total value of $467,208.00. Following the sale, the chief executive officer owned 36,788 shares in the company, valued at $3,973,104. This represents a 10.52% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Robert Coldrake sold 4,613 shares of the company's stock in a transaction that occurred 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 completion of the sale, the chief financial officer owned 10,006 shares in the company, valued at $1,065,138.70. This represents a 31.55% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 17,834 shares of company stock worth $1,900,331 over the last 90 days. Company insiders own 0.09% of the company's stock.

Hedge Funds Weigh In On Flutter Entertainment

Several institutional investors and hedge funds have recently made changes to their positions in FLUT. Cibc World Markets Corp acquired a new position in shares of Flutter Entertainment in the fourth quarter valued at approximately $1,678,841,000. Hsbc Holdings PLC grew its position in shares of Flutter Entertainment by 33,988.7% in the first quarter. Hsbc Holdings PLC now owns 5,605,543 shares of the company's stock valued at $575,185,000 after purchasing an additional 5,589,099 shares during the last quarter. Capital International Investors grew its position in shares of Flutter Entertainment by 146.8% in the fourth quarter. Capital International Investors now owns 8,039,066 shares of the company's stock valued at $1,728,772,000 after purchasing an additional 4,782,302 shares during the last quarter. Norges Bank acquired a new position in shares of Flutter Entertainment in the fourth quarter valued at approximately $694,009,000. Finally, Durable Capital Partners LP grew its position in shares of Flutter Entertainment by 274.2% in the third quarter. Durable Capital Partners LP now owns 1,243,988 shares of the company's stock valued at $315,973,000 after purchasing an additional 911,507 shares during the last quarter.

Flutter Entertainment Company 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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