Flutter Entertainment PLC (NYSE:FLUT) stock has reversed its premarket gains, down 0.5% at $75.87 at last check, after Citigroup upgraded FLUT to "buy" from "neutral" with a $91 price target. The analyst in coverage called the recent selloff "overblown," after the shares fell to their lowest level since March 2019 less than just a month ago.
Flutter Entertainment stock is down roughly 64% since the start of the year. The shares have shed more than 20% in the last month alone, now attempting a rebound from their Oct. 2 six-year low of $73.50.
A short squeeze could help the sports betting stock extend its rebound. Short interest rose 32% during the two most recent reporting periods, and the 13.83 million shares sold short account for 9.8% of FLUT's available float. At the equity's average pace of trading, it would take shorts nearly five days to buy back their bearish bets.
Furthermore, FLUT's 14-day Relative Strength Index (RSI) sits at 20.3, firmly in "oversold" territory, which often precedes a short-term bounce. It's also worth noting that Flutter Entertainment sports a Schaeffer's Volatility Scorecard (SVS) of 99 out of 100, indicating the stock has consistently exceeded options traders' volatility expectations during the past year.
