Flutter buybacks shares, aims to buy back $350 million by end of first quarter

Posted: January 4, 2025, 07:00 pm.

Last updated: January 4, 2025, 02:24 pm.

Flutter Entertainment (NYSE: FLUT) is off to a solid start with its previously announced $5 billion share repurchase program as the sportsbook operator bought back approximately 9,600 of its shares on the last trading day of 2024.

This was followed by purchases of more than 13,000 shares on January 2 – the first trading day of 2025. Goldman Sachs executed the open market buyback on behalf of the Dublin-based gaming company. Flutter previously said it planned to begin buying back its stock in November.

The redemption is part of Flutter's intention to buy back up to $350 million of ordinary shares over the period through March 31, 2025 following the announcement of the share buyback program on November 13, 2024 (the “Buyback”). . to buyback $5 billion of shares announced on September 25, 2024,” according to a statement.

Following the repurchase activity, the FanDuel parent will have “177,881,080 ordinary shares in issue.”

Finding Some Value in Buybacks Flutter

Flutter closed at $256.76 on Friday, or about 10% below its 52-week high of $284.79. Based on the space between the 52-week high and repurchase prices, the gaming company is finding some value in its shares.

If Wall Street is correct in its outlook, Flutter's market cap is poised to soar. 20 of the 22 analysts covering the stock have assigned a “strong buy” or equivalent rating of “buy” and have an average price target on shares of $303.90, or 18.36% higher than the January 3 close.

FanDuel is one of the most valuable gaming brands in the world and in the US, it is part of an online sports betting duopoly with DraftKings (NASDAQ: DKNG).

Flutter is going bigger with buybacks

Betfair's parent company said in September that it planned to buyback $5 billion of its shares over the next several years. This was good for one of the largest buyback plans announced in the gaming industry in 2024 and was five times more than the buyback plan announced by rival DraftKings a month earlier.

Flutter's plan to return capital to shareholders in the form of a buyback program is the operator's first such announcement since its listing on the New York Stock Exchange (NYSE) in early 2024. In the middle of last year, the company shifted its primary listing to the US.

This serves the purpose of expanding Flutter's investor base, particularly among US professional market participants, while promoting liquidity in the shares.