[ad_1]
Posting date: 17 May 2024 at 01:44h
Last Updated on: May 17, 20,24, 01h44h
ValueAct, an San Francisco hedge fund, acquired a stake of FanDuel’s parent company Flutter Entertainment Inc. (NYSE:FLUT) during the first quarter.
According to the Securities and Exchange Commission’s (SEC), the money manager purchased 495,135 of the gaming company based in Dublin, valued at $78.18 millions, during the first quarter of this year..
This is a brand new position and ValueAct’s only direct exposure to sports betting. The regulatory document lists 12 positions in equity. Flutter is listed as one. ValueAct now has 1.72% Flutter in its portfolio.
ValueAct Investment Justifies Flutter’s Move to NYSE
ValueAct’s stake of $78.18 millions in Flutter is a tiny percentage of its $37.33 billion valuation. However, this investment may be a reason for Sportsbook Operator to decide to list their shares at the New York Stock Exchange.
The following are some of the ways to get in touch with us: On Jan. 29, a move took place. Flutter had told its investors that it was listing in New York to increase the number of investors who were professional. ValueAct’s stake in Flutter is an example of how the NYSE listing was already validated. But there’s much more to the story.
According to SEC filings for the first quarter 13F, at least 135 investors own Flutter shares. Most likely, these positions date back to before the New York listing of the gaming company. However, it’s possible that ValueAct was not the only professional who initiated a trade in FanDuel in the first 3 months of 2024.
This growing group of investors could be one reason why shareholders of Flutter approved in a resounding vote earlier this year the company’s plans to relocate its business. Primary listing on the NYSE — a move Jefferies Equity Research analyst James Wheatcroft expects could occur as soon as May 31. His $275 target price implies an upside of 35% over current levels. Wheatcroft wrote to his clients earlier in the week to say that Flutter was trading at 17x Cash Flow, which implied it is deeply discounted compared to DraftKings. DraftKings (NASDAQ: DKNG), Flutter’s principal US rival, is valued at 39x its cash flow.
What Flutter Might Offer ValueAct
ValueAct, as it is known in certain circles, has an acronym. InvestorThis implies that it is pushing for Flutter to make some changes or get board seats. But the hedge fund is yet to announce such plans, and the amount of equity it currently owns in Flutter’s gaming division may be too low for any significant changes.
ValueAct is an investor who has made investments in more than 100 companies. ValueAct also serves on 47 board positions. ValueAct describes itself as a “long-term” investor and says it can hold the Flutter investment for a while.
“Our aim is to leave an investment in a more profitable position than we found it when first investing in the company. Positions are usually held for 3 to 5 years. The hedge fund said that they sometimes hold positions up to 10 years.
[ad_2]
