Stocks Tracker: Tax hikes, acquisitions and company unrest drive stock price fluctuations
EGR analyses the share price movements of key industry players, including Flutter, PENN Entertainment and Better Collective
Flutter Entertainment
1 May closing: $189.76
31 May closing: $192.09
Peak May closing: $211.72
It proved to be a rollercoaster of a month for Flutter Entertainment, the online gambling industries most valuable public company.
The Dublin-headquartered operator kicked off May 2024 with gradual growth when compared to the previous month.
The share price then rose rapidly after the company announced it was relocating its primary listing to the New York Stock Exchange (NYSE) – a move backed by 98% of Flutter shareholders during its AGM.
The impending transition from the London Stock Exchange (LSE) to New York sparked a 6.9% increase in Flutter’s stock between 1 May and 6 May – rising from $189.76 to $202.90.
This upward trajectory continued well into the month, with Flutter peaking at $211.72 by 15 May.
The growth in the first half of the month was to be mirrored by a significant crash. News emerged that lawmakers in Illinois were one step closer to introducing a 40% top tax rate for operators in the state.
This triggered an 8% slump to $188.30, as concerns FanDuel would be one of two firms subject to the top rate, alongside DraftKings, spooked investors.
The end of the month saw Flutter complete its primary listing on the NYSE, as well as the unexpected resignation of CFO Paul Edgecliffe-Johnson. The finance chief stepped down, citing family commitments, and will be replaced by Flutter International head Rob Coldrake.
The company ended May at $192.09 – up from the start of the month, but some way off the lofty peaks, as the industry giant settles into a new era as a US-first business.
PENN Entertainment
1 May closing: $16.44
31 May closing: $17.50
Peak May closing: $17.50
Drastic swings in share price bookended PENN Entertainment’s May 2024, as a faltering Q1 performance was augmented by investor unrest at the Wyomissing-based land-based and online operator.
The announcement of the company’s Q1 financial results at the start of the month revealed lower than projected revenue – $208m – for the company’s online division, spearheaded by ESPN Bet but also including Hollywood Casino. This resulted in the share price sliding 8.76% to $15 to kickstart Q2.
Following the initial setback, PENN’s stock price gradually rose as the month went on, reaching $16.90 by 14 May.
During that time, the company’s independent chairman, David Handler, bought up $624,000 worth of stock.
The most significant movement in the share price came right at the end of the month, though. An open letter penned by an activist PENN investor, The Donerail Group, slammed the leadership of CEO Jay Snowden and called for the sale of PENN’s land-based operations.
The group’s M&A strategy, including the purchase of Barstool Sports and theScore, was also heavily criticised as Snowden’s remuneration package was also called into question.
The immediate reaction to the strongly worded six-page letter was a 19% jump in the stock, closing at $17.50 on 31 May.
Better Collective
1 May closing: SEK288.50
31 May closing: SEK243.50
Peak May closing: SEK303.00
Better Collective kicked off the month of May at SEK288.50, down slightly from the end of April, but a negative reaction to the affiliate giant’s Q1 report, despite once again flexing its M&A muscles, failed to fill investors with much confidence.
After sight fluctuations over the following weeks, Better Collective’s shares hit their highest point for May – SEK303 – midway through the month, following the €42m acquisition of UK affiliate and bet calculator AceOdds.
CEO Jesper Søgaard described the acquisition as being “spot on” for the firm’s portfolio plans, with the market appearing to agree as the Copenhagen-headquartered business saw its stock leap.
However, a significant dip came later on in the month after the company revealed its Q1 financial results on 21 May.
There was a 6% drop in organic revenue quarter on quarter, as well as rising costs partially attributed to an increase in employee headcount from the previous quarter.
Shares plunged 19.23% to SEK241.50, which was the lowest level of the entire month, with concerns over Google’s recent updates impacting the affiliate sector continuing to take their toll.
Better Collective ended the month at SEK243.50, putting an end to the steady growth experienced at the start of the year.