DraftKings Inc. (NASDAQ:DKNG) Receives Average Recommendation of “Moderate Buy” from Analysts

DraftKings Inc. (NASDAQ:DKNG) has earned an average recommendation of “Moderate Buy” from the twenty-eight research firms that are covering the stock, MarketBeat.com reports. Two equities research analysts have rated the stock with a sell rating, one has issued a hold rating and twenty-five have issued a buy rating on the company. The average 12 month price target among brokerages that have updated their coverage on the stock in the last year is $47.00.

A number of research firms have recently weighed in on DKNG. Needham & Company LLC increased their price objective on shares of DraftKings from $54.00 to $58.00 and gave the stock a “buy” rating in a research note on Wednesday, March 27th. Truist Financial reiterated a “buy” rating and set a $55.00 price objective (up previously from $45.00) on shares of DraftKings in a research note on Tuesday, February 20th. Susquehanna boosted their price objective on DraftKings from $51.00 to $54.00 and gave the company a “positive” rating in a report on Monday, March 25th. JPMorgan Chase & Co. reaffirmed an “overweight” rating and set a $55.00 target price on shares of DraftKings in a report on Thursday, March 28th. Finally, The Goldman Sachs Group started coverage on DraftKings in a research report on Tuesday. They set a “buy” rating and a $60.00 price target for the company.

DraftKings Trading Down 2.3 %

DraftKings stock opened at $40.68 on Monday. The company has a debt-to-equity ratio of 1.49, a quick ratio of 1.34 and a current ratio of 1.34. The stock has a market cap of $35.25 billion, a PE ratio of -23.25 and a beta of 1.86. The stock has a 50-day moving average of $43.79 and a two-hundred day moving average of $37.92. DraftKings has a one year low of $20.26 and a one year high of $49.57.

DraftKings (NASDAQ:DKNG) last released its earnings results on Friday, February 16th. The company reported ($0.10) earnings per share for the quarter, missing the consensus estimate of $0.06 by ($0.16). DraftKings had a negative return on equity of 87.24% and a negative net margin of 21.88%. The company had revenue of $1.23 billion for the quarter, compared to analysts’ expectations of $1.24 billion. During the same period in the prior year, the firm posted ($0.53) EPS. The firm’s revenue for the quarter was up 43.9% on a year-over-year basis. On average, research analysts anticipate that DraftKings will post -0.25 EPS for the current fiscal year.

Insider Activity

In other DraftKings news, insider Jason Robins sold 200,000 shares of the stock in a transaction dated Monday, January 22nd. The shares were sold at an average price of $37.82, for a total transaction of $7,564,000.00. Following the completion of the transaction, the insider now owns 3,815,698 shares of the company’s stock, valued at $144,309,698.36. The sale was disclosed in a legal filing with the SEC, which is available at this link. In other DraftKings news, insider Jason Robins sold 200,000 shares of the company’s stock in a transaction on Monday, January 22nd. The stock was sold at an average price of $37.82, for a total transaction of $7,564,000.00. Following the transaction, the insider now directly owns 3,815,698 shares in the company, valued at $144,309,698.36. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Paul Liberman sold 510,000 shares of DraftKings stock in a transaction that occurred on Monday, January 29th. The shares were sold at an average price of $40.00, for a total transaction of $20,400,000.00. Following the completion of the transaction, the insider now owns 2,291,406 shares of the company’s stock, valued at approximately $91,656,240. The disclosure for this sale can be found here. Insiders have sold a total of 1,596,101 shares of company stock valued at $65,685,509 in the last quarter. Insiders own 51.19% of the company’s stock.

Institutional Trading of DraftKings

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. AJ Wealth Strategies LLC purchased a new position in shares of DraftKings during the first quarter worth about $306,000. MetLife Investment Management LLC purchased a new position in DraftKings during the 1st quarter worth approximately $387,000. Panagora Asset Management Inc. increased its position in DraftKings by 49.0% during the first quarter. Panagora Asset Management Inc. now owns 29,993 shares of the company’s stock worth $584,000 after buying an additional 9,866 shares during the period. Cibc World Market Inc. lifted its stake in DraftKings by 26.2% in the first quarter. Cibc World Market Inc. now owns 21,719 shares of the company’s stock valued at $423,000 after buying an additional 4,512 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its holdings in shares of DraftKings by 2.6% in the first quarter. Dimensional Fund Advisors LP now owns 49,464 shares of the company’s stock valued at $963,000 after acquiring an additional 1,270 shares during the period. Institutional investors and hedge funds own 37.70% of the company’s stock.

DraftKings Company Profile

DraftKings Inc operates as a digital sports entertainment and gaming company in the United States and internationally. It provides online sports betting and casino, daily fantasy sports, media, and other consumer products, as well as retails sportsbooks. The company also engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators.