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Is It Too Late to Buy Flutter Entertainment Stock?

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs

Flutter Entertainment Plc’s stocks have surged by 5.34 percent on Wednesday. This upbeat movement comes amidst a wave of positive market sentiment, bolstered by key news headlines. Investors are particularly optimistic following the company’s announcement of a strategic partnership with a major tech player, alongside robust quarterly earnings that exceeded expectations. Such favorable developments have undoubtedly driven the stock price upward, reflecting strong investor confidence.

Flutter Entertainment (FLUT) has recently seen significant market activity, driven by various strategic moves and a favorable outlook by analysts. These developments are making headlines and fueling investor interest. But is it too late to get in on the action? Let’s dive into the latest news and the company’s financial performance to uncover the potential.

Recent Developments:

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  • Needham initiated coverage on Flutter Entertainment with a Buy rating and a $270 price target, emphasizing the company’s future EBITDA growth.
  • Flutter Entertainment has agreed to acquire Snaitech S.p.A. for EUR 2.3B, aiming to strengthen its market leadership in Italy.
  • Barclays has given FLUT an Overweight rating and a $263 price target, praising its unmatched scale and global market potential.
  • Flutter acquires a 56% stake in NSX Group for $350M to bolster its presence in Brazil, expecting significant revenue synergies.
  • FanDuel, a Flutter subsidiary, appoints Caralyn Cooley as Chief People Officer, highlighting the company’s focus on strong leadership.

Candlestick Chart

Live Update at 13:42:49 EST: On Wednesday, September 25, 2024 Flutter Entertainment Plc stock [NYSE: FLUT] is trending up by 5.34%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Flutter Entertainment’s Financial Pulse:

Flutter Entertainment has been on a rollercoaster. The stock dipped to close at $240.35 on 25 Sep 2024 from around $229 just a few days earlier. The market seems excited about the company’s strategic acquisitions and favorable analyst ratings. Even though the company’s profitability shows some weaknesses – with an EBIT margin of -5.1% and a pretax profit margin of -5.9% – its growth potential remains strong.

Revenue and Earnings:

Over the past year, Flutter Entertainment has generated over $7.69B in revenue, evidencing its capacity to attract large market shares. Although the earnings report shows an enterprise value of $41.48B and a price-to-sales ratio of 3.83, some key figures like PE ratio remain undefined. This suggests room for growth as the company continues to capture more international markets.

Debt and Liquidity:

Understanding the financial health of FLUT is crucial. The company has a total debt-to-equity ratio of 0.74, indicating moderate leverage. Its current ratio of 0.9 shows that the company can meet its short-term obligations. With an interest coverage ratio of 1.6, Flutter’s earnings can cover its interest expenses, hinting at sustainable financial practices.

More Breaking News

Chart and Market Behavior:

Analyzing the recent stock data reveals insightful trends. For instance, FLUT’s share price was as high as $252.8394 but showcased some volatility, dropping to as low as $240.35 within the same period. This fluctuation could be attributed to market reactions to new acquisitions and analyst ratings.

The company’s intraday movements on 25 Sep 2024 indicate a tight trading band, with fluctuations between $240.67 and $242.68 within hours. These narrow trading windows suggest a stock that’s under keen observation by traders, where every movement is closely watched.

Event-Driven Boost:

Needham’s New Coverage:

Needham initiating coverage with a Buy rating and a $270 price target is a significant endorsement. This rating is based on FLUT’s leadership in the U.S. and the potential for substantial EBITDA growth by 2027. Analysts believe that Flutter’s diverse portfolio and strong market strategies make it a robust choice for growth-focused investors.

Snaitech Acquisition:

FLUT’s agreement to acquire Snaitech S.p.A. for EUR 2.3B is a clear move to solidify its presence in the European market. Expected to close by the second quarter of 2025, this acquisition is seen as immediately accretive to earnings per share, with the potential for substantial operating cost synergies. It’s a strategic move that could balance out the company’s geographic revenue streams.

Barclays’ Overweight Rating:

Barclays covered Flutter Entertainment’s U.S. shares with an Overweight rating and set a $263 price target. Barclays appreciates Flutter’s product moat, scale, and global market opportunity. This rating underscores the company’s strength in core markets and its ability to leverage them for further growth.

Brazilian Market Expansion:

Flutter’s purchase of a 56% stake in NSX Group for $350M amplifies its footprint in the Brazilian market. NSX is projected to hit $256M in revenue next year, driven by the integration of FLUT’s pricing and risk management prowess. This step supports FLUT’s strategy to lead in international markets, creating new revenue streams and operational synergies.

Leadership Touch:

FanDuel appointing Caralyn Cooley as Chief People Officer is indicative of the company’s keen attention to organizational growth. Her experience in expanding global operations and diversity initiatives bodes well for Flutter’s future workforce strategy and talent management – essential elements for scalable growth.

Conclusion: Are FLUT Shares a Late Buy?

Given these strategic advancements and positive analyst coverage, Flutter Entertainment presents an intriguing opportunity. While the stock experienced some dips, the company’s moves in acquisitions, leadership appointments, and favorable ratings from financial heavyweights suggest it’s positioning for a robust future.

Investors looking at FLUT should focus on its strategic global consolidations and growth-driven financial outlook. With the current market buzz and sound strategic steps, FLUT could still be one of the top picks for those eyeing growth in the online entertainment space.

Invest Wisely: Making a decision now depends on your risk appetite and investment horizon. Flutter’s strategic moves paint the picture of long-term growth, but as always, consider consulting with a financial advisor before diving in.

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”