Flutter Entertainment (NYSE:FLUT) Shares Gap Up - What's Next?

Key Points

• Shares gapped up—FLUT opened at $114.85 after a prior close of $104.81 and was last trading around $111.99, up roughly 6% with about 674,249 shares traded.
• Flutter's board authorized a $250 million share repurchase program (about 1.3% of shares), signaling the company may view the stock as undervalued.
• In the latest quarter Flutter missed EPS ($1.74 vs. $2.11 expected) and revenue of $4.74B also fell short, while analysts maintain a "Moderate Buy" consensus with an average price target of $234.65.

Flutter Entertainment PLC (NYSE:FLUT - Get Free Report)'s share price gapped up before the market opened on Monday . The stock had previously closed at $104.81, but opened at $114.85. Flutter Entertainment shares last traded at $111.9940, with a volume of 674,249 shares trading hands.

Analyst Ratings Changes

Several equities research analysts have recently commented on the stock. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Flutter Entertainment in a research report on Monday, December 29th. Citigroup restated an "outperform" rating on shares of Flutter Entertainment in a research report on Monday, January 5th. Morgan Stanley reduced their target price on shares of Flutter Entertainment from $352.00 to $315.00 and set an "overweight" rating for the company in a report on Friday, December 12th. Needham & Company LLC decreased their price target on shares of Flutter Entertainment from $300.00 to $150.00 and set a "buy" rating on the stock in a research report on Friday, February 27th. Finally, HSBC upgraded shares of Flutter Entertainment from a "hold" rating to a "buy" rating and dropped their price target for the stock from $265.00 to $228.00 in a research note on Monday, November 24th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $234.65.

Flutter Entertainment Trading Up 6.0%

The stock has a 50-day moving average price of $141.50 and a two-hundred day moving average price of $202.79. The stock has a market capitalization of $19.48 billion, a PE ratio of -62.00, a PEG ratio of 0.71 and a beta of 2.32. The company has a debt-to-equity ratio of 1.31, a quick ratio of 0.95 and a current ratio of 0.95.

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

Flutter Entertainment declared that its Board of Directors has authorized a stock repurchase program 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 shares through open market purchases. Shares repurchase programs are generally a sign that the company's board believes its stock is undervalued.

Insider Buying and Selling at Flutter Entertainment

In related news, CEO Jeremy Peter Jackson sold 4,326 shares of the stock in a transaction dated Wednesday, March 11th. The stock was sold at an average price of $108.00, for a total transaction of $467,208.00. Following the completion of the sale, the chief executive officer owned 36,788 shares in the company, valued at approximately $3,973,104. This trade represents a 10.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Robert Coldrake sold 4,613 shares of Flutter Entertainment 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 sale, the chief financial officer directly owned 10,006 shares in the company, valued at $1,065,138.70. This trade represents a 31.55% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 17,834 shares of company stock valued at $1,900,331 over the last ninety days. 0.09% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. MassMutual Private Wealth & Trust FSB raised its position in shares of Flutter Entertainment by 219.4% during the fourth quarter. MassMutual Private Wealth & Trust FSB now owns 115 shares of the company's stock valued at $25,000 after buying an additional 79 shares during the last quarter. JFS Wealth Advisors LLC bought a new position in shares of Flutter Entertainment during the third quarter worth $27,000. Zions Bancorporation National Association UT grew its stake in Flutter Entertainment by 1,685.7% during the fourth quarter. Zions Bancorporation National Association UT now owns 125 shares of the company's stock valued at $27,000 after acquiring an additional 118 shares in the last quarter. JCIC Asset Management Inc. bought a new stake in Flutter Entertainment in the 3rd quarter valued at $32,000. Finally, Atlantic Union Bankshares Corp bought a new stake in Flutter Entertainment in the 3rd quarter valued at $34,000.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.