Flutter Entertainment (NYSE:FLUT) Upgraded at BNP Paribas Exane

Key Points

• BNP Paribas Exane upgraded Flutter Entertainment to a “strong sell” rating, adding to a mixed analyst picture that now includes a consensus rating of Moderate Buy and an average price target of $189.26.
• Flutter’s latest quarterly results beat expectations, with EPS of $1.22 versus estimates of $1.09 and revenue of $4.30 billion versus $4.24 billion, though the stock has still fallen sharply from its 52-week high.
• The company continues to support shareholder returns through a $250 million buyback authorization, while recent insider buying by the CEO and a director may signal confidence in the stock after its selloff.

Flutter Entertainment (NYSE:FLUT - Get Free Report) was upgraded by equities researchers at BNP Paribas Exane to a "strong sell" rating in a research note issued on Thursday,Zacks.com reports.

Other equities analysts have also recently issued research reports about the stock. Canaccord Genuity Group reduced their price target on shares of Flutter Entertainment from $270.00 to $220.00 and set a "buy" rating on the stock in a research report on Monday, March 2nd. Kepler Capital Markets downgraded Flutter Entertainment from a "strong-buy" rating to a "hold" rating in a report on Monday, March 16th. Citizens Jmp reduced their target price on Flutter Entertainment from $188.00 to $165.00 and set a "market outperform" rating on the stock in a report on Thursday, May 7th. Zacks Research cut Flutter Entertainment from a "hold" rating to a "strong sell" rating in a research note on Monday, January 19th. Finally, Truist Financial reduced their price target on Flutter Entertainment from $140.00 to $130.00 and set a "buy" rating on the stock in a research note on Thursday, May 7th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, seven have given a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $189.26.

Flutter Entertainment Price Performance

FLUT opened at $93.70 on Thursday. The company has a debt-to-equity ratio of 1.27, a quick ratio of 0.90 and a current ratio of 0.90. The stock's 50 day moving average price is $105.79 and its 200-day moving average price is $160.59. The stock has a market capitalization of $16.30 billion, a PE ratio of -43.78, a price-to-earnings-growth ratio of 1.19 and a beta of 1.58. Flutter Entertainment has a 52-week low of $92.02 and a 52-week high of $313.68.

Flutter Entertainment (NYSE:FLUT - Get Free Report) last issued its quarterly earnings data on Wednesday, May 6th. The company reported $1.22 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 company's quarterly revenue was up 17.4% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.59 EPS. On average, equities research analysts predict that Flutter Entertainment will post 5.14 EPS for the current year.

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

Insider Activity at Flutter Entertainment

In other news, CEO Daniel Mark Taylor bought 1,611 shares of the stock in a transaction on Tuesday, May 12th. The shares were bought at an average price of $94.29 per share, with a total value of $151,901.19. Following the completion of the acquisition, the chief executive officer owned 34,584 shares in the company, valued at $3,260,925.36. The trade was a 4.89% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director John A. Bryant bought 1,950 shares of the firm's stock in a transaction that occurred on Friday, May 8th. The stock was bought at an average cost of $102.86 per share, for a total transaction of $200,577.00. Following the completion of the acquisition, the director owned 9,235 shares in the company, valued at $949,912.10. This trade represents a 26.77% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders have purchased 10,453 shares of company stock valued at $1,045,526 and have sold 22,306 shares valued at $2,333,598. 0.09% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in FLUT. Healthcare of Ontario Pension Plan Trust Fund bought a new stake in Flutter Entertainment during the 1st quarter worth approximately $1,499,000. Renaissance Technologies LLC bought a new position in shares of Flutter Entertainment in the first quarter worth approximately $40,562,000. Gabelli Funds LLC boosted its position in shares of Flutter Entertainment by 50.3% in the first quarter. Gabelli Funds LLC now owns 12,400 shares of the company's stock worth $1,264,000 after purchasing an additional 4,150 shares during the period. Public Employees Retirement System of Ohio raised its position in shares of Flutter Entertainment by 9.5% during the 1st quarter. Public Employees Retirement System of Ohio now owns 89,704 shares of the company's stock valued at $9,145,000 after purchasing an additional 7,790 shares during the period. Finally, Arrowstreet Capital Limited Partnership raised its position in shares of Flutter Entertainment by 286.2% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 52,805 shares of the company's stock valued at $5,383,000 after purchasing an additional 39,133 shares during the period.

Trending Headlines about Flutter Entertainment

Here are the key news stories impacting Flutter Entertainment this week:

• Positive Sentiment: CEO Daniel Mark Taylor and director Carolan Lennon bought shares this week, adding to a cluster of insider purchases that can signal management believes FLUT is undervalued after its sharp selloff. Article title
• Positive Sentiment: Several articles highlighted that analysts still broadly rate Flutter a buy or outperform name, with some pointing to meaningful upside if FanDuel recovery continues and the company executes on its buyback program. Article title
• Positive Sentiment: Flutter’s board has also been using its $250 million repurchase authorization, and recent share cancellations reinforce the company’s capital-return story. Article title
• Neutral Sentiment: One report framed Flutter as affected by broader NYSE Composite sentiment, which is more of a market-wide backdrop than a company-specific catalyst. Article title
• Neutral Sentiment: Coverage of a management reshuffle is drawing attention to CEO Peter Jackson, but the leadership review is still a process story rather than a clear operating update. Article title
• Negative Sentiment: Investors remain focused on the post-earnings selloff, which was tied to a Q1 miss, concern that U.S. profit targets may be too ambitious, and worries about FanDuel performance. Article title
• Negative Sentiment: Reporting that BlackRock bought more Flutter shares raised the possibility of a London delisting, adding another layer of uncertainty around the company’s structure and future market access. Article title

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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