DraftKings Inc. (NASDAQ:DKNG) Given Consensus Recommendation of “Moderate Buy” by Brokerages

Shares of DraftKings Inc. (NASDAQ:DKNG) have been given a consensus recommendation of “Moderate Buy” by the forty analysts that are covering the company, Marketbeat.com reports. Two analysts have rated the stock with a sell recommendation, eight have issued a hold recommendation, twenty-nine have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month price objective among brokers that have covered the stock in the last year is $34.3677.

Several research analysts have commented on DKNG shares. New Street Research set a $29.00 target price on DraftKings in a research note on Monday, June 1st. Wedbush assumed coverage on shares of DraftKings in a research note on Friday, April 24th. They issued an “outperform” rating on the stock. TD Cowen lifted their price target on shares of DraftKings from $30.00 to $35.00 and gave the company a “buy” rating in a report on Friday, July 10th. Wells Fargo & Company lowered their price objective on shares of DraftKings from $32.00 to $29.00 and set an “overweight” rating for the company in a research report on Monday. Finally, Benchmark reissued a “buy” rating on shares of DraftKings in a research note on Monday.

DraftKings Price Performance

DraftKings stock opened at $22.81 on Friday. The company has a debt-to-equity ratio of 3.03, a quick ratio of 1.02 and a current ratio of 1.02. DraftKings has a 52 week low of $20.46 and a 52 week high of $48.78. The stock has a market capitalization of $11.32 billion, a P/E ratio of 380.17 and a beta of 1.65. The stock has a fifty day moving average of $25.70 and a 200-day moving average of $25.77.

DraftKings (NASDAQ:DKNG) last released 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 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 quarterly revenue was up 16.8% compared to the same quarter last year. During the same period last year, the business earned ($0.07) earnings per share. On average, sell-side analysts expect that DraftKings will post 0.54 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Woodrow Levin sold 34,234 shares of the stock in a transaction on Monday, May 18th. The stock was sold at an average price of $25.71, for a total value of $880,156.14. Following the completion of the transaction, the director directly owned 29,820 shares in the company, valued at approximately $766,672.20. This represents a 53.45% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider R Stanton Dodge sold 62,500 shares of the firm’s 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 sale, the insider directly owned 556,258 shares in the company, valued at approximately $16,509,737.44. This trade represents a 10.10% decrease in their position. The SEC filing for this sale provides additional information. 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. Insiders own 47.18% of the company’s stock.

Hedge Funds Weigh In On DraftKings

A number of institutional investors and hedge funds have recently bought and sold shares of DKNG. Dagco Inc. bought a new position in DraftKings in the fourth quarter valued at about $26,000. Ascentis Independent Advisors bought a new stake in shares of DraftKings during the first quarter worth about $27,000. Basecamp Wealth Advisors LLC grew its holdings in shares of DraftKings by 3,547.1% during the first quarter. Basecamp Wealth Advisors LLC now owns 1,240 shares of the company’s stock worth $27,000 after purchasing an additional 1,206 shares during the last quarter. CoreCap Advisors LLC increased its stake in shares of DraftKings by 336.5% in the second quarter. CoreCap Advisors LLC now owns 1,148 shares of the company’s stock valued at $29,000 after buying an additional 885 shares during the period. Finally, Montag A & Associates Inc. increased its stake in shares of DraftKings by 82.5% in the fourth quarter. Montag A & Associates Inc. now owns 1,106 shares of the company’s stock valued at $38,000 after buying an additional 500 shares during the period. Institutional investors and hedge funds own 37.70% of the company’s stock.

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.