DraftKings (NASDAQ:DKNG) Trading Up 2.8% – Time to Buy?

DraftKings Inc. (NASDAQ:DKNG) was up 2.8% on Wednesday . The company traded as high as $38.75 and last traded at $38.40. Approximately 1,632,003 shares traded hands during mid-day trading, a decline of 76% from the average daily volume of 6,695,284 shares. The stock had previously closed at $37.36.

Analysts Set New Price Targets

DKNG has been the subject of a number of recent research reports. JMP Securities lowered their price objective on shares of DraftKings from $52.00 to $50.00 and set a “market outperform” rating for the company in a research report on Monday. Needham & Company LLC reissued a “buy” rating and issued a $60.00 price target on shares of DraftKings in a report on Friday, November 8th. Wells Fargo & Company increased their target price on DraftKings from $47.00 to $52.00 and gave the stock an “overweight” rating in a research report on Thursday, October 17th. BMO Capital Markets restated an “outperform” rating and set a $48.00 price target on shares of DraftKings in a research report on Wednesday, October 16th. Finally, Benchmark reaffirmed a “buy” rating and issued a $44.00 price objective on shares of DraftKings in a report on Tuesday. Three equities research analysts have rated the stock with a hold rating and twenty-three have assigned a buy rating to the company. Based on data from MarketBeat, DraftKings presently has a consensus rating of “Moderate Buy” and an average price target of $51.08.

DraftKings Stock Up 2.1 %

The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 1.17. The firm has a market capitalization of $33.58 billion, a PE ratio of -43.33 and a beta of 1.90. The business’s 50-day moving average price is $40.32 and its 200-day moving average price is $37.90.

DraftKings (NASDAQ:DKNG) last released its earnings results on Thursday, November 7th. The company reported ($0.60) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.42) by ($0.18). DraftKings had a negative return on equity of 41.23% and a negative net margin of 9.06%. The company had revenue of $1.10 billion during the quarter, compared to analysts’ expectations of $1.12 billion. As a group, equities research analysts predict that DraftKings Inc. will post -0.79 EPS for the current fiscal year.

Insider Activity at DraftKings

In other news, insider R Stanton Dodge sold 228,496 shares of the company’s stock in a transaction dated Monday, December 9th. The stock was sold at an average price of $42.74, for a total transaction of $9,765,919.04. Following the completion of the sale, the insider now owns 541,884 shares in the company, valued at approximately $23,160,122.16. This represents a 29.66 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Paul Liberman sold 532,095 shares of the firm’s stock in a transaction that occurred on Thursday, December 26th. The shares were sold at an average price of $38.30, for a total value of $20,379,238.50. Following the completion of the transaction, the insider now directly owns 68,654 shares in the company, valued at $2,629,448.20. The trade was a 88.57 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 852,183 shares of company stock valued at $33,503,025. Insiders own 51.19% of the company’s stock.

Institutional Trading of DraftKings

Institutional investors and hedge funds have recently modified their holdings of the company. Marshall Wace LLP raised its holdings in DraftKings by 53.3% in the 2nd quarter. Marshall Wace LLP now owns 9,410,431 shares of the company’s stock worth $359,196,000 after acquiring an additional 3,269,932 shares during the period. Jupiter Asset Management Ltd. increased its stake in shares of DraftKings by 1,261.7% in the second quarter. Jupiter Asset Management Ltd. now owns 1,612,405 shares of the company’s stock worth $61,545,000 after purchasing an additional 1,493,995 shares during the period. Fred Alger Management LLC lifted its position in shares of DraftKings by 46.6% during the 3rd quarter. Fred Alger Management LLC now owns 4,643,852 shares of the company’s stock worth $182,039,000 after purchasing an additional 1,476,003 shares during the last quarter. Blue Whale Capital LLP bought a new stake in DraftKings during the 2nd quarter valued at approximately $39,306,000. Finally, AQR Capital Management LLC grew its holdings in DraftKings by 29.0% in the 2nd quarter. AQR Capital Management LLC now owns 3,877,581 shares of the company’s stock valued at $144,905,000 after buying an additional 870,789 shares during the last quarter. 37.70% of the stock is currently owned by institutional investors and hedge funds.

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.