Flutter Entertainment (NYSE:FLUT) Shares Down 6.4% - Here's Why

Key Points

• Flutter Entertainment shares fell 6.4% to about $77.87, on trading volume well below the daily average.
• Analysts have broadly lowered price targets, although the stock retains a “Moderate Buy” consensus rating with a target price of $155.48.
• The company’s latest quarter showed revenue rising 3.3% year over year to $4.33 billion, but adjusted earnings of $0.49 per share missed expectations of $0.54.

Flutter Entertainment PLC (NYSE:FLUT - Get Free Report) fell 6.4% on Monday. The stock traded as low as $78.66 and last traded at $77.8690. Approximately 384,192 shares changed hands during trading, a decline of 88% from the average session volume of 3,308,631 shares. The stock had previously closed at $83.23.

Analyst Upgrades and Downgrades

FLUT has been the subject of several research analyst reports. UBS Group cut their price objective on Flutter Entertainment from $160.00 to $140.00 and set a "buy" rating for the company in a report on Thursday, August 6th. Rothschild & Co Redburn reissued a "neutral" rating and issued a $119.00 target price (down from $169.00) on shares of Flutter Entertainment in a research report on Monday, September 21st. Zacks Research downgraded Flutter Entertainment from a "hold" rating to a "strong sell" rating in a research note on Tuesday, August 4th. BTIG Research reduced their price target on shares of Flutter Entertainment from $120.00 to $113.00 and set a "buy" rating for the company in a research report on Wednesday, August 5th. Finally, Stifel Nicolaus lowered their price objective on shares of Flutter Entertainment from $161.00 to $133.00 and set a "buy" rating on the stock in a research note on Thursday, August 6th. Two analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, nine have given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $155.48.

Flutter Entertainment Stock Down 7.2%

The company's fifty day moving average is $98.42 and its 200-day moving average is $102.22. The company has a debt-to-equity ratio of 1.32, a quick ratio of 0.89 and a current ratio of 0.89. The company has a market capitalization of $13.40 billion, a PE ratio of -17.99, a price-to-earnings-growth ratio of 2.11 and a beta of 1.26.

Flutter Entertainment (NYSE:FLUT - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported $0.49 earnings per share for the quarter, missing analysts' consensus estimates of $0.54 by ($0.05). Flutter Entertainment had a negative net margin of 4.39% and a positive return on equity of 7.27%. The firm had revenue of $4.33 billion for the quarter, compared to analysts' expectations of $4.24 billion. During the same quarter last year, the firm posted $2.95 EPS. The firm's quarterly revenue was up 3.3% compared to the same quarter last year. As a group, analysts predict that Flutter Entertainment PLC will post 3.48 EPS for the current fiscal year.

Insider Activity

In other news, COO James Bishop sold 741 shares of the business's stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $97.86, for a total value of $72,514.26. Following the transaction, the chief operating officer owned 16,864 shares of the company's stock, valued at approximately $1,650,311.04. The trade was a 4.21% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Don Liu sold 565 shares of the business's stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $97.86, for a total transaction of $55,290.90. Following the completion of the sale, the insider owned 20,441 shares in the company, valued at approximately $2,000,356.26. The trade was a 2.69% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 6,681 shares of company stock valued at $644,214. Company insiders own 0.13% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Parvus Asset Management Jersey Ltd purchased a new position in shares of Flutter Entertainment in the 2nd quarter worth $1,552,097,267. Hsbc Holdings PLC grew its position in Flutter Entertainment by 33,988.7% in the first quarter. Hsbc Holdings PLC now owns 5,605,543 shares of the company's stock worth $575,185,000 after acquiring an additional 5,589,099 shares in the last quarter. Capital International Investors grew its position in Flutter Entertainment by 146.8% in the fourth quarter. Capital International Investors now owns 8,039,066 shares of the company's stock worth $1,728,772,000 after acquiring an additional 4,782,302 shares in the last quarter. Norges Bank bought a new stake in Flutter Entertainment during the fourth quarter worth approximately $694,009,000. Finally, Amundi raised its position in Flutter Entertainment by 463.7% during the first quarter. Amundi now owns 2,059,906 shares of the company's stock valued at $210,007,000 after purchasing an additional 1,694,474 shares during the period.

Flutter Entertainment Company Profile

Flutter Entertainment plc is a global sports betting and online gaming company headquartered in Dublin, Ireland. The company provides customers with sports wagering, casino, poker, bingo and other gaming products through digital platforms, retail betting shops and other distribution channels.

Flutter's portfolio includes brands such as FanDuel in the United States, Paddy Power and Betfair in the United Kingdom and Ireland, PokerStars internationally, Sky Betting & Gaming, Sisal and tombola.

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