Flutter Entertainment PLC (NYSE:FLUT) Stock Update
Citigroup has upgraded Flutter Entertainment (FLUT) to “buy” from “neutral,” setting a price target of $91. Despite this positive news, FLUT’s stock has dipped by 0.5% to $75.87, reversing some of its premarket gains. The analyst noted that the recent selloff appears “overblown,” as the stock hit its lowest point since March 2019 less than a month ago.
Since the beginning of the year, FLUT’s stock has plummeted approximately 64%, with over 20% of that decline occurring in the last month. The stock is currently trying to rebound from its six-year low of $73.50 reached on October 2.
A potential short squeeze could further aid in the stock’s recovery. Short interest has increased by 32% over the last two reporting periods, with 13.83 million shares shorted, representing 9.8% of FLUT’s float. With the current trading volume, it would take short sellers nearly five days to cover their positions.
Additionally, FLUT’s 14-day Relative Strength Index (RSI) is at 20.3, indicating it is “oversold,” which often leads to a short-term bounce. Flutter Entertainment boasts a Schaeffer’s Volatility Scorecard (SVS) of 99 out of 100, suggesting it has frequently outperformed traders’ volatility expectations throughout the past year.
