Flutter Entertainment (NYSE:FLUT) to Buyback $245.00 million in Outstanding Shares

Key Points

• Flutter Entertainment's Board of Directors has approved a $245 million share buyback plan, allowing the company to repurchase up to 0.5% of its shares as they believe the stock is undervalued.
• The company's recent earnings report showed an EPS of $2.95, exceeding estimates of $2.08, along with a 16.0% increase in revenue year-over-year.
• Analysts have raised price targets for Flutter Entertainment, with target prices now ranging from $340 to $360 and a consensus rating of "Moderate Buy".

Flutter Entertainment (NYSE:FLUT - Get Free Report) announced that its Board of Directors has approved a share buyback plan on Friday, August 8th, RTT News reports. The company plans to repurchase $245.00 million in shares. This repurchase authorization permits the company to buy up to 0.5% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's board believes its stock is undervalued.

Flutter Entertainment Trading Down 8.1%

Shares of FLUT traded down $24.82 during mid-day trading on Friday, reaching $281.25. The company had a trading volume of 7,318,089 shares, compared to its average volume of 2,040,824. Flutter Entertainment has a fifty-two week low of $183.18 and a fifty-two week high of $313.68. The firm has a fifty day simple moving average of $283.14 and a 200-day simple moving average of $260.30. The stock has a market cap of $49.69 billion, a price-to-earnings ratio of 138.55, a price-to-earnings-growth ratio of 1.13 and a beta of 2.31. The company has a current ratio of 0.95, a quick ratio of 0.95 and a debt-to-equity ratio of 0.67.

Flutter Entertainment (NYSE:FLUT - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The company reported $2.95 EPS for the quarter, topping the consensus estimate of $2.08 by $0.87. The firm had revenue of $4.19 billion for the quarter, compared to analyst estimates of $3.06 billion. Flutter Entertainment had a return on equity of 12.28% and a net margin of 2.96%. The firm's revenue for the quarter was up 16.0% compared to the same quarter last year. On average, sell-side analysts anticipate that Flutter Entertainment will post 4.17 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the company. Oppenheimer increased their price target on Flutter Entertainment from $310.00 to $350.00 and gave the company an "outperform" rating in a research report on Tuesday, July 22nd. UBS Group increased their target price on Flutter Entertainment from $340.00 to $360.00 and gave the stock a "buy" rating in a research report on Friday. Canaccord Genuity Group upped their target price on shares of Flutter Entertainment from $330.00 to $340.00 and gave the stock a "buy" rating in a report on Friday. JMP Securities increased their price objective on Flutter Entertainment from $323.00 to $345.00 and gave the stock a "market outperform" rating in a research report on Friday. Finally, Bank of America raised their target price on shares of Flutter Entertainment from $295.00 to $330.00 and gave the company a "buy" rating in a research note on Friday, July 11th. Three investment analysts have rated the stock with a hold rating, twenty-one have issued a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $328.62.

Insider Activity at Flutter Entertainment

In other Flutter Entertainment news, Director Nancy Cruickshank sold 281 shares of Flutter Entertainment stock in a transaction that occurred on Wednesday, June 4th. The stock was sold at an average price of $245.71, for a total value of $69,044.51. Following the completion of the transaction, the director directly owned 1,797 shares in the company, valued at $441,540.87. The trade was a 13.52% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director John A. Bryant sold 418 shares of the company's stock in a transaction that occurred on Wednesday, June 4th. The shares were sold at an average price of $245.71, for a total value of $102,706.78. Following the transaction, the director directly owned 5,956 shares of the company's stock, valued at $1,463,448.76. This trade represents a 6.56% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 2,455 shares of company stock worth $601,632 over the last quarter.

About Flutter Entertainment

Flutter Entertainment plc operates as a sports betting and gaming company in the United Kingdom, Ireland, Australia, the United States, Italy, and internationally. The company operates through four segments: UK & Ireland, Australia, International, and US. It offers sports betting, iGaming, daily fantasy sports, online racing wagering, and TV broadcasting products; sportsbooks and exchange sports betting products, and gaming products; and online sports betting.

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