DraftKings (NASDAQ:DKNG) Stock Price Up 10.7% – Here’s Why

DraftKings Inc. (NASDAQ:DKNG) rose 10.7% on Tuesday . The stock traded as high as $27.58 and last traded at $27.4430. Approximately 4,217,692 shares traded hands during trading, a decline of 70% from the average daily volume of 14,022,433 shares. The stock had previously closed at $24.78.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on DKNG shares. BTIG Research raised their target price on DraftKings from $28.00 to $30.00 and gave the company a “buy” rating in a report on Friday, May 8th. Truist Financial decreased their target price on shares of DraftKings from $33.00 to $30.00 and set a “buy” rating on the stock in a research report on Tuesday, April 21st. Oppenheimer decreased their target price on shares of DraftKings from $50.00 to $35.00 and set an “outperform” rating on the stock in a research report on Tuesday, February 17th. Roth Mkm upgraded shares of DraftKings from a “sell” rating to a “buy” rating in a report on Friday, April 24th. Finally, Freedom Capital raised shares of DraftKings to a “strong-buy” rating in a research note on Wednesday, May 20th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $34.21.

DraftKings Stock Performance

The stock has a 50-day simple moving average of $23.87 and a 200-day simple moving average of $27.57. The company has a market capitalization of $13.42 billion, a price-to-earnings ratio of 451.70 and a beta of 1.66. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 3.03.

DraftKings (NASDAQ:DKNG) last announced its earnings results on Friday, May 8th. The company reported $0.20 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.02). The business had revenue of $1.65 billion during the quarter, compared to analyst estimates of $1.63 billion. DraftKings had a net margin of 0.93% and a return on equity of 13.51%. The business’s revenue for the quarter was up 16.8% on a year-over-year basis. During the same period in the previous year, the company earned ($0.07) earnings per share. On average, analysts anticipate that DraftKings Inc. will post 0.6 earnings per share for the current year.

Insider Activity

In other news, insider Paul Liberman sold 484,417 shares of DraftKings stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $25.16, for a total transaction of $12,187,931.72. Following the transaction, the insider directly owned 213,597 shares in the company, valued at approximately $5,374,100.52. This trade represents a 69.40% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Jocelyn Moore sold 2,150 shares of DraftKings stock in a transaction on Friday, March 13th. The shares were sold at an average price of $25.60, for a total value of $55,040.00. Following the transaction, the director owned 1,406 shares in the company, valued at approximately $35,993.60. This trade represents a 60.46% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 521,663 shares of company stock worth $13,144,962. 47.18% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of DKNG. Dagco Inc. acquired a new position in shares of DraftKings in the 4th quarter valued at $26,000. Ascentis Independent Advisors purchased a new position in DraftKings in the 1st quarter worth about $27,000. Ameriflex Group Inc. increased its stake in DraftKings by 100.0% in the 3rd quarter. Ameriflex Group Inc. now owns 810 shares of the company’s stock worth $30,000 after purchasing an additional 405 shares in the last quarter. Asset Dedication LLC purchased a new position in DraftKings in the 3rd quarter worth about $37,000. Finally, Montag A & Associates Inc. increased its stake in DraftKings by 82.5% in the 4th quarter. Montag A & Associates Inc. now owns 1,106 shares of the company’s stock worth $38,000 after purchasing an additional 500 shares in the last quarter. 37.70% of the stock is owned by institutional investors and hedge funds.

About DraftKings

DraftKings Inc is a leading digital sports entertainment and gaming company specializing in daily fantasy sports, sports betting and iGaming products. The company provides an integrated platform where users can participate in daily fantasy contests, place wagers on professional sports events, and enjoy a range of online casino-style games. DraftKings’ proprietary technology supports real-time odds, live scoring and advanced analytics to enhance the user experience across mobile and desktop applications.

Founded in 2012 by co-founders Jason Robins, Matthew Kalish and Paul Liberman, DraftKings began as a daily fantasy sports provider and rapidly expanded into regulated sports betting following legislative changes in the United States.