timothy sykes logo

Stock News

Could Flutter Entertainment Stock Make You a Fortune?

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

Flutter Entertainment Plc is experiencing a significant boost, with stocks trading up by 6.96 percent on Wednesday. This surge follows positive news including a new regulatory approval that expands its market reach and a strategic partnership with a major sports organization. These developments add substantial momentum, increasing investor confidence and driving up the stock price.

Key News Updates Driving Flutter Entertainment Stock

  • Needham initiated coverage with a Buy rating and a $270 price target, highlighting potential EBITDA growth.
  • Flutter announces acquisition of Snaitech for EUR 2.3B, bolstering its leadership in Italy.
  • Barclays initiated coverage with an Overweight rating and a $263 price target, emphasizing product moat and market opportunity.
  • Berenberg upgraded the firm’s price target to 18,800 GBp, maintaining a Buy rating.
  • Flutter acquires 56% stake in NSX Group for $350M to increase its presence in Brazil.

Candlestick Chart

Live Update at 11:18:41 EST: On Wednesday, September 25, 2024 Flutter Entertainment Plc stock [NYSE: FLUT] is trending up by 6.96%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Overview of Flutter Entertainment’s Recent Earnings and Key Financial Metrics

Flutter Entertainment has been making quite the buzz lately, and if you’re wondering whether this company might be your golden ticket to riches, you’re not alone. The financial metrics paint an intriguing picture. Despite a fluctuation of stock prices, Flutter’s push into new markets and consistent upgrades from analysts suggest strong potential.

Recent data show a mixed bag for Flutter. From 24 Sep, 2024, the opening was at $249.42 but closed the day at $244.07. This was a minor drop from the previous high of $252.83. However, such volatility is normal and not entirely unexpected in stocks of this kind. Looking deeper into their key ratios, we can note a negative EBIT margin at -5.1% and a similarly worrying pretax profit margin at -5.9%. These figures indicate some operational challenges, but they’re not the whole story.

The move to spend EUR 2.3B on acquiring Snaitech, expected to close by Q2 2025, is particularly crucial. This deal will probably yield significant returns given Snaitech’s dominant market position in Italy. Not only will it be accretive to earnings per share immediately, but there will also be cost synergies of at least 70M euros. This acquisition is fundamentally sound, promising high leverage reduction due to profitable growth. Another strategic move is acquiring a 56% stake in NSX Group for $350M to solidify presence in the burgeoning Brazilian market, expected to pad revenue by $256M in 2024.

Revenue and margins are two sides of the same coin when considering Flutter. A steep revenue of $7.69B with a gross margin of 43.1% is notable, albeit with a downside of a low current ratio at 0.9, suggesting liquidity issues. Furthermore, the price-to-book ratio stands at 2.81, and the leverage ratio hit 2.5 – higher leverage can portend risk but also signal efficient capital use for growth.

From a stock trading perspective, the pricing movement has been just as telling. The last five days show significant trading volume, with price fluctuations reflective of the market’s sentiment:

  • Sep 25, 2024: Opened at $249, closed at $244
  • Sep 24, 2024: Saw a high of $231, closed at $228
  • Sep 23, 2024: Opened at $231, dipped slightly to close at $229
  • Sep 20, 2024: A jump from $229 to $231
  • Sep 19, 2024: Stable opening but dropped from $233 to $229

Translating these into your trading strategies would mean a careful watch at key support levels and possible upside triggers. The recent buzz around such strategic acquisitions and high analyst ratings provide an optimistic outlook.

More Breaking News

The Impact of Recent News on Flutter’s Stock Price

In the world of stock trading, nothing moves the needle like big news, and Flutter has had plenty of those. The recent flurry of positive analyst ratings and strategic acquisitions are not mere blips; they’re potential game-changers.

Needham’s initiation of coverage with a Buy rating and a $270 price target adds to the forward momentum. They’ve identified significant EBITDA growth potential and higher GAAP earnings per share by 2027. This endorsement doesn’t just mean confidence in Flutter’s financial health. It lays a foundation for credence in the company’s strategy. Industry analysts at Needham are well-regarded for their exhaustive research; thus, their “Buy” recommendation speaks volumes.

Similarly, Barclays starting coverage with an Overweight rating and a $263 price target emphasizes their confidence in Flutter’s product moat and market opportunity. In their eyes, Flutter holds an “attractive” position in the market with unparalleled scale and a substantial total addressable market. Such acknowledgment from a heavyweight like Barclays influences investor sentiment immensely.

Now, let’s talk acquisitions—Flutter’s agreement to buy Snaitech for EUR 2.3B could be the magic bullet. Italy is a lucrative market, and with Snaitech under its wing, Flutter will strengthen its grasp. This move shows assertive expansion, calculated risks, and an ultimate goal of market dominance. On a similar front, acquiring a 56% stake in NSX Group for $350M to consolidate its Brazilian market presence is another stroke of strategic brilliance. Together, these acquisitions and targeted expansions highlight Flutter’s ambition, ensuring the company stays ahead in competitive international markets.

These moves herald a profitable path for the company, both in the immediate and long-term future. But as Flutter stretches its wings wider, the stakes get higher. The promising figures in terms of revenue boosts and market positioning can make one fairly confident that the calculated expansion will pay off.

Conclusion: So, Could Flutter Entertainment Stock Make You a Fortune?

In the intricate puzzle of stock market investments, Flutter Entertainment stands out with shining tiles. The need for caution, however, is as essential as ever. While positive ratings, revenue projections, and strategic acquisitions beckon an optimistic future, the flipside—current operational burdens, like negative EBIT margins—cannot be ignored.

Still, with needful diligence, the prevailing bullish sentiments coupled with strategic thrust might very well render Flutter Entertainment a plucky investment. So, if you’re weighing your options, consider which pieces of Flutter’s story resonate most with your financial goals. Keep your eyes peeled for upcoming quarterly reports, acquisition integrations, and market reactions, because these will be the true north guiding Flutter’s—and your—future.

Starting from newsworthy analyst endorsements to strategic acquisitions that align with deepening market penetration, every move Flutter Entertainment makes is as calculated as a chess grandmaster’s. Time will tell if these moves result in checkmate or a shift in strategy, but the plot couldn’t be more engaging for us keen-eyed onlookers.

Curious about this stock and eager to learn more? Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success. Start your journey towards financial growth and trading mastery!

But wait, there’s more! Elevate your trading game with StocksToTrade, the ultimate platform for traders. With specialized tools for swing and day trading, StocksToTrade harnesses the power of Artificial Intelligence to guide you through the market’s twists and turns. Discover insights on Robinhood penny stocks and top biotech picks to fuel your trading journey:

Ready to embark on your financial adventure? Click the links and let the journey unfold.

How much has this post helped you?

(0 votes, average: 0 out of 5)
Leave a reply
Author card Timothy Sykes picture

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”