Flutter Entertainment plc (FLUT) Down 7.3% — Time to Exit?
Key Points
Flutter Entertainment plc (FLUT) suffered a sharp decline on the NYSE, plummeting 7.31% and shedding $10.33 from its previous close to finish at $131.04. The steep drop placed the stock under severe pressure, erasing recent gains in a single trading session and cementing a volatile near-term outlook. With sellers dominating throughout the day, FLUT's collapse represented a decisive bearish reversal rather than routine market fluctuation.
Trading volume remained elevated yet controlled. Activity reached 2,044,453 shares, falling short of the 90-day average of 2,924,217, indicating the decline occurred without overwhelming panic selling. Nevertheless, the price action displayed consistent downward momentum, positioning the stock significantly below crucial reference points from the past twelve months. At $131.04, FLUT now trades approximately 58% below its 52-week peak of $313.69, illustrating the dramatic retreat from last year's highs and the substantial recovery required to restore previous upward trajectory.
Today's decline distinguished FLUT as particularly vulnerable, even when compared to other struggling names like Caesars Entertainment (CZR,), DraftKings Inc. (DKNG) and MGM Resorts International (MGM). Given this context, FLUT's disproportionate weakness suggests the stock remains in a defensive stance, with near-term sentiment encountering persistent headwinds and market conditions favoring continued caution until selling pressure subsides.
Why Flutter Entertainment plc Price is Moving Lower
Flutter Entertainment plc (FLUT) reached a fresh 52-week low on Feb. 11, 2026, trading within the $140–$148 range following a dramatic 26% decline over the past month. This weakness stems from deteriorating conditions in the U.S. online sports betting market, which has dampened investor confidence across the sector and intensified demands for clearer evidence of sustainable growth prospects. Despite maintaining Street consensus support with average price targets well above current trading levels, recent analyst downgrades reflect growing concerns about diminished growth visibility and increasingly conservative projections for 2026–2027—creating an overhang that pressures valuations during momentum shifts.
Fundamental challenges at the company level compound these headwinds. The most recent quarterly results revealed revenue of $3.79 billion, representing a -9.5% sequential decline from the prior quarter's $4.19 billion, highlighting how seasonal variations and market dynamics can produce volatile top-line performance. Profitability pressures persist as well, with a negative -1.43% profit margin amplifying downside volatility when investors gravitate toward more stable earnings profiles. While ownership developments—including Kenneth Dart's disclosed 18.6% passive stake and Bank of America's significant holdings notification—may signal institutional interest, these factors have proven insufficient to counteract the prevailing risk-averse sentiment. With the next earnings announcement scheduled for Mar. 3 (EPS estimate $1.62), prudence remains advisable as markets await updated guidance and clearer insights into demand trajectories.
What is the Flutter Entertainment plc Rating - Should I Sell?
Weiss Ratings assigns FLUT an E rating with a current Sell recommendation. The stock received a downgrade on 1/16/2026, signaling that the overall risk/reward equation has deteriorated significantly. An E grade indicates that downside risks substantially outweigh potential upside opportunities, regardless of any superficially attractive business narrative elements.
Several underlying metrics explain Flutter Entertainment's inability to protect shareholder value. The Weak Growth Index contrasts with a seemingly robust 16.81% revenue growth rate, suggesting that top-line expansion fails to translate into higher-quality growth when accounting for cost structures, margin sustainability, and operational consistency. This disconnect manifests in profitability metrics: the -1.43% profit margin maintains pressure on earnings power, while a -107.69 forward P/E underscores the outlook's dependence on future improvements rather than current profitability.
Operational excellence presents additional concerns. The Very Weak Efficiency Index reflects poor capital returns and limited evidence that scale advantages translate into sustainable value creation. Meanwhile, the Weak Total Return Index and Weak Volatility Index highlight subpar risk-adjusted performance and challenging drawdown periods—two critical factors that maintain an E rating even amid revenue growth.
Relative to Consumer Discretionary competitors, FLUT's E rating positions it at the bottom of an already-struggling group, alongside Caesars Entertainment, Inc. (CZR, E+). The stock also underperforms DraftKings Inc. (DKNG, D-) and MGM Resorts International (MGM, D+), which achieve higher rankings while remaining in Sell territory. The sole positive factor is balance sheet strength, reflected in the Good Solvency Index, though this alone cannot offset weak returns and fragile profitability.
About Flutter Entertainment plc
Flutter Entertainment plc (FLUT) operates as a Consumer Discretionary company within the Consumer Services industry, specializing in sports betting and online gaming across the United States, United Kingdom, Ireland, Australia, Italy, and various international markets. The company manages an extensive portfolio of gambling brands and platforms spanning regulated and highly competitive jurisdictions, where stringent licensing requirements, compliance obligations, and responsible gaming protocols create demanding operational environments. While Flutter's scale provides market reach, it also exposes the business to evolving regulatory landscapes and scrutiny across multiple oversight bodies.
The company's operational framework encompasses online sportsbooks and comprehensive iGaming offerings featuring casino-style entertainment including blackjack, roulette, slot machines, poker, rummy, and lottery products. Additionally, Flutter provides sports betting-related services through the Betfair betting exchange, daily fantasy sports platforms, and horse racing wagering via the TVG brand. Consumers access these services through an extensive network of websites including fanduel.com, tvg.com, betfair.com, paddypower.com, paddypower.ie, sportsbet.com.au, pokerstars.com, sisal.it, jungleegames.com, maxbet.rs, and adjarabet.com.
Flutter's brand portfolio includes FanDuel, Sky Betting & Gaming, Sportsbet, PokerStars, Paddy Power, Sisal, tombola, Betfair, TVG, Junglee Games, Adjarabet, and MaxBet, complemented by live poker tours and events. The company also offers business-to-business pricing and risk management services, capabilities that support trading operations while adding operational complexity. Originally established as Paddy Power Betfair plc, the company rebranded to Flutter in 2019. Founded in 1958 and headquartered in New York, New York.
Investor Outlook
With a Weiss Rating of E (Sell), Flutter Entertainment plc (FLUT) demands heightened caution, as the overall risk/reward profile remains distinctly unfavorable. Investors should monitor whether the stock can establish support near recent lows while tracking broader Consumer Discretionary sector sentiment for signs of improving risk appetite, remaining vigilant for factors that could further compromise returns or amplify volatility. Comprehensive rankings of all E-rated Consumer Discretionary stocks are available within the Weiss Stock Screener.
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