TD Cowen Forecasts Strong Price Appreciation for DraftKings (NASDAQ:DKNG) Stock

DraftKings (NASDAQ:DKNG) had its price objective upped by equities researchers at TD Cowen from $30.00 to $35.00 in a research note issued on Friday,Benzinga reports. The brokerage currently has a “buy” rating on the stock. TD Cowen’s target price would suggest a potential upside of 30.26% from the stock’s current price.

Other analysts have also issued reports about the company. BTIG Research lifted their price target on DraftKings from $28.00 to $30.00 and gave the company a “buy” rating in a research note on Friday, May 8th. BNP Paribas Exane began coverage on shares of DraftKings in a report on Thursday, May 14th. They issued an “underperform” rating and a $20.00 target price on the stock. Scotiabank upgraded DraftKings to an “outperform” rating in a report on Friday, April 24th. Wedbush started coverage on DraftKings in a research note on Friday, April 24th. They issued an “outperform” rating for the company. Finally, Guggenheim reissued a “buy” rating and issued a $35.00 price target on shares of DraftKings in a research report on Wednesday, June 24th. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $34.46.

DraftKings Stock Up 2.2%

Shares of DKNG opened at $26.87 on Friday. The company has a debt-to-equity ratio of 3.03, a current ratio of 1.02 and a quick ratio of 1.02. DraftKings has a one year low of $20.46 and a one year high of $48.78. The company has a market cap of $13.33 billion, a P/E ratio of 444.95 and a beta of 1.65. The firm has a 50 day simple moving average of $25.65 and a two-hundred day simple moving average of $26.48.

DraftKings (NASDAQ:DKNG) last announced its quarterly earnings data on Friday, May 8th. The company reported $0.20 earnings per share for the quarter, missing the consensus estimate of $0.22 by ($0.02). The business had revenue of $1.65 billion for the quarter, compared to the consensus estimate of $1.63 billion. DraftKings had a return on equity of 13.51% and a net margin of 0.93%.DraftKings’s quarterly revenue was up 16.8% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($0.07) earnings per share. Research analysts forecast that DraftKings will post 0.6 EPS for the current fiscal year.

Insider Activity at DraftKings

In related news, Director Woodrow Levin sold 34,234 shares of the company’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $25.71, for a total transaction of $880,156.14. Following the completion of the sale, the director owned 29,820 shares in the company, valued at approximately $766,672.20. This represents a 53.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider R Stanton Dodge sold 62,500 shares of the stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $29.68, for a total value of $1,855,000.00. Following the completion of the sale, the insider directly owned 556,258 shares of the company’s stock, valued at $16,509,737.44. The trade was a 10.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 97,596 shares of company stock worth $2,756,991. 47.18% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Dagco Inc. purchased a new stake in DraftKings in the 4th quarter valued at about $26,000. Ascentis Independent Advisors bought a new position in shares of DraftKings during the 1st quarter worth approximately $27,000. Basecamp Wealth Advisors LLC boosted its stake in shares of DraftKings by 3,547.1% in the 1st quarter. Basecamp Wealth Advisors LLC now owns 1,240 shares of the company’s stock worth $27,000 after buying an additional 1,206 shares during the last quarter. CoreCap Advisors LLC boosted its stake in shares of DraftKings by 336.5% in the 2nd quarter. CoreCap Advisors LLC now owns 1,148 shares of the company’s stock worth $29,000 after buying an additional 885 shares during the last quarter. Finally, Asset Dedication LLC bought a new position in shares of DraftKings in the third quarter valued at approximately $37,000. 37.70% of the stock is currently owned by hedge funds and other institutional investors.

DraftKings Company Profile

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.