Stock Buyback Program Initiated by Flutter Entertainment (NYSE:FLUT) Board

Key Points

• The board approved a $250 million share repurchase program to buy back up to 1.3% of outstanding shares, a move that typically signals management believes the stock is undervalued.
• Latest quarter missed estimates—reported EPS $1.74 vs. $2.11 expected and revenue $4.74B vs. $4.87B—and the stock trades near $109.70, well below its 52-week high of $313.68.
• Analysts have a consensus rating of "Moderate Buy" with a $234.65 price target, though several firms have recently lowered targets or adjusted ratings, reflecting mixed sentiment.

Flutter Entertainment (NYSE:FLUT - Get Free Report) announced that its board has approved a stock repurchase program on Wednesday, March 11th, RTT News reports. The company plans to buyback $250.00 million in outstanding shares. This buyback authorization authorizes the company to purchase up to 1.3% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's leadership believes its shares are undervalued.

Flutter Entertainment Price Performance

Shares of Flutter Entertainment stock traded up $2.45 on Wednesday, reaching $109.70. The company's stock had a trading volume of 3,280,678 shares, compared to its average volume of 5,034,541. 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 company has a market capitalization of $19.23 billion, a P/E ratio of -60.94, a PEG ratio of 0.73 and a beta of 2.30. The stock has a 50-day moving average price of $156.89 and a 200-day moving average price of $213.08. Flutter Entertainment has a 52-week low of $99.96 and a 52-week high of $313.68.

Flutter Entertainment (NYSE:FLUT - Get Free Report) last announced its earnings results on Thursday, February 26th. The company reported $1.74 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.11 by ($0.37). The business had revenue of $4.74 billion for the quarter, compared to analysts' expectations of $4.87 billion. Flutter Entertainment had a negative net margin of 1.89% and a positive return on equity of 12.12%. The company's quarterly revenue was up 24.9% on a year-over-year basis. During the same quarter last year, the business earned $2.94 EPS. Analysts expect that Flutter Entertainment will post 4.17 EPS for the current year.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on FLUT shares. Bank of America decreased their price target on Flutter Entertainment from $250.00 to $210.00 and set a "neutral" rating for the company in a report on Thursday, January 22nd. Truist Financial cut their target price on shares of Flutter Entertainment from $260.00 to $160.00 and set a "buy" rating for the company in a report on Friday, February 27th. Susquehanna reiterated a "positive" rating and issued a $228.00 target price on shares of Flutter Entertainment in a research note on Tuesday, January 27th. BTIG Research lowered their price target on shares of Flutter Entertainment from $230.00 to $180.00 and set a "buy" rating on the stock in a report on Friday, February 27th. Finally, Wells Fargo & Company restated an "equal weight" rating and set a $228.00 price target (down from $248.00) on shares of Flutter Entertainment in a research report on Wednesday, January 14th. Three research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, five have issued a Hold rating and two 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 price target of $234.65.

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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