Needham & Company LLC Lowers Flutter Entertainment (NYSE:FLUT) Price Target to $135.00

Key Points

• Needham lowered its price target for Flutter from $150 to $135 while maintaining a "buy" rating, implying about a 36% upside, though the consensus analyst target remains much higher at an average of $206.14 with a "Moderate Buy" consensus.
• Mixed Q1 results and margin pressure: Flutter reported $1.74 EPS (vs. $2.11 consensus) and $4.76B revenue (slightly below estimates) despite 24.9% YoY revenue growth, with profitability and US-related costs cited as drivers of recent weakness.
• Corporate moves and leadership change: The board authorized a $250 million share buyback (part of a larger $5bn programme and recent share cancellations), while FanDuel CEO Amy Howe's departure and insider sales (CEO and CFO reduced holdings) add near-term execution and investor-sentiment risk.

Flutter Entertainment (NYSE:FLUT - Get Free Report) had its price objective reduced by stock analysts at Needham & Company LLC from $150.00 to $135.00 in a note issued to investors on Thursday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Needham & Company LLC's price target indicates a potential upside of 36.27% from the company's current price.

A number of other equities research analysts have also recently issued reports on the company. Kepler Capital Markets cut Flutter Entertainment from a "strong-buy" rating to a "hold" rating in a research report on Monday, March 16th. Stifel Nicolaus decreased their target price on Flutter Entertainment from $216.00 to $189.00 and set a "buy" rating for the company in a research report on Thursday, April 9th. Oppenheimer decreased their target price on Flutter Entertainment from $210.00 to $160.00 and set an "outperform" rating for the company in a research report on Monday, April 13th. Texas Capital raised Flutter Entertainment to a "strong-buy" rating in a research report on Thursday, January 8th. Finally, Citizens Jmp decreased their target price on Flutter Entertainment from $195.00 to $188.00 and set a "market outperform" rating for the company in a research report on Wednesday, April 8th. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $206.14.

Flutter Entertainment Stock Down 4.1%

Shares of Flutter Entertainment stock opened at $99.07 on Thursday. The stock has a market capitalization of $17.28 billion, a P/E ratio of -55.04, a PEG ratio of 1.59 and a beta of 1.58. The company has a quick ratio of 0.95, a current ratio of 0.95 and a debt-to-equity ratio of 1.31. The stock has a 50 day moving average price of $107.86 and a two-hundred day moving average price of $167.06. Flutter Entertainment has a 12-month low of $97.94 and a 12-month high of $313.68.

Flutter Entertainment (NYSE:FLUT - Get Free Report) last announced its earnings results on Friday, February 27th. The company reported $1.74 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.11 by ($0.37). The company had revenue of $4.76 billion for the quarter, compared to the consensus estimate of $4.87 billion. Flutter Entertainment had a positive return on equity of 12.12% and a negative net margin of 1.89%.The firm's revenue for the quarter was up 24.9% compared to the same quarter last year. During the same period in the previous year, the company earned $2.94 EPS. Equities analysts expect that Flutter Entertainment will post 5.14 earnings per share for the current year.

Flutter Entertainment announced that its board has authorized 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 repurchase up to 1.3% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's management believes its shares are undervalued.

Insider Activity

In other news, CEO Amy Howe sold 8,895 shares of the stock in a transaction that occurred on Wednesday, March 11th. The stock was sold at an average price of $105.91, for a total value of $942,069.45. Following the completion of the sale, the chief executive officer directly owned 78,889 shares of the company's stock, valued at approximately $8,355,133.99. This represents a 10.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Robert Coldrake sold 4,613 shares of the firm's stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $106.45, for a total value of $491,053.85. Following the completion of the transaction, the chief financial officer directly owned 10,006 shares of the company's stock, valued at approximately $1,065,138.70. This trade represents a 31.55% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 17,834 shares of company stock valued at $1,900,331. 0.09% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. MassMutual Private Wealth & Trust FSB lifted its position in Flutter Entertainment by 219.4% in the fourth quarter. MassMutual Private Wealth & Trust FSB now owns 115 shares of the company's stock worth $25,000 after purchasing an additional 79 shares during the period. JFS Wealth Advisors LLC acquired a new position in Flutter Entertainment during the third quarter worth $27,000. Zions Bancorporation National Association UT raised 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 worth $27,000 after acquiring an additional 118 shares in the last quarter. JCIC Asset Management Inc. acquired a new position in Flutter Entertainment during the third quarter worth $32,000. Finally, Atlantic Union Bankshares Corp acquired a new position in Flutter Entertainment during the third quarter worth $34,000.

Flutter Entertainment News Roundup

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

• Positive Sentiment: Share repurchase activity — Flutter cancelled 253,947 ordinary shares as part of its ongoing $5bn buyback programme, signalling continued capital return and share-count reduction. Read More.
• Positive Sentiment: Top-line beat — Q1 revenue came in ahead of estimates (~$4.30B vs consensus ~$4.24B) and some outlets reported EPS slightly topping expectations (Zacks reported $1.22 vs $1.15 est.), showing demand growth despite margin pressure. Read More.
• Neutral Sentiment: Analyst view — Consensus brokerage coverage remains constructive (consensus "Moderate Buy"), which supports medium-term demand for the shares. Read More.
• Neutral Sentiment: Corporate schedule/IR access — Management will appear at a J.P. Morgan fireside chat next week, giving investors a chance for more direct color on US strategy and outlook. Read More.
• Negative Sentiment: Profitability and US drag — Investors focused on the bottom line: net income fell sharply (reports cite ~38% decline to $209M, EPS down ~22%), and higher costs from acquisitions and investment in US prediction markets pressured margins — a key reason for the intraday selloff. Read More.
• Negative Sentiment: Leadership upheaval at FanDuel — FanDuel CEO Amy Howe has departed and Flutter restructured US leadership (Dan Taylor to oversee US operations), adding near-term execution risk while management transitions occur. Read More. Read More.

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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