Form 4: Kenneth Dart Increases Flutter Entertainment Swap Position

Reporting person Kenneth Bryan Dart disclosed a new total return swap transaction involving 425,000 notional shares of Flutter Entertainment plc.

Summary

• Kenneth Bryan Dart, a 10% owner of Flutter Entertainment, entered into a total return swap agreement on April 22, 2026.
• The transaction involves 425,000 notional shares at a reference price of $107.3143 per share.
• The swap is scheduled to terminate on March 2, 2028, and will be cash-settled.
• Following this transaction, the reporting person's total notional share position through various entities, including Lake Michigan Limited and LBS Limited, reaches 13,127,970 shares.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral-to-positive signal, as it reflects a major shareholder's continued economic commitment to the company through a long-dated derivative instrument.

Positives

• Significant long-term interest from a major shareholder, indicating confidence in the company's future performance.
• The use of total return swaps allows the investor to maintain economic exposure to the stock without immediate direct equity acquisition.

Negatives

• The transaction is a derivative instrument (swap) rather than a direct purchase of common stock, which does not grant voting rights.
• The reporting person disclaims beneficial ownership of the shares except to the extent of their pecuniary interest.

Risks

• Market price volatility: The reporting person is obligated to pay the counterparty for any decrease in the market price of the referenced shares below the reference price of $107.3143.
• Interest rate risk: The swap requires monthly interest payments based on the Overnight Bank Funding Rate (OBFR).

Future Outlook

The swap agreement indicates a long-term outlook on the stock price, with the contract set to expire in March 2028.

Industry Context

StockSavvy.ai notes that large-scale derivative positions by major shareholders in the gaming and betting sector often signal institutional confidence in long-term growth, though they do not impact immediate voting control.

Comparison to Industry Standards

• The use of total return swaps is a common strategy for institutional investors to gain significant economic exposure to large-cap stocks like Flutter Entertainment without triggering immediate regulatory thresholds for direct ownership changes.

Related Party Transactions

• The transaction involves Lake Michigan Limited, an entity owned by the reporting person.

Stakeholder Impact

• Shareholders may view the increased economic exposure by a major investor as a sign of stability and confidence in the company's long-term valuation.

Next Steps

• The swap will continue until the termination date of March 2, 2028.
• The reporting person will continue to make monthly interest payments based on the OBFR.

Key Dates

Keywords

Flutter Entertainment, FLUT, Total Return Swap, Kenneth Dart, Insider Trading, SEC Form 4, Equity Derivatives