DraftKings (NASDAQ:DKNG) Posts Earnings Results, Beats Estimates By $0.07 EPS

DraftKings (NASDAQ:DKNG) issued its earnings results on Thursday. The company reported $0.09 earnings per share for the quarter, topping the consensus estimate of $0.02 by $0.07, Briefing.com reports. DraftKings had a negative net margin of 2.68% and a negative return on equity of 10.88%. The company had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.51 billion. During the same period in the prior year, the business posted $0.30 earnings per share. The firm’s revenue for the quarter was down 4.6% compared to the same quarter last year.

DraftKings Trading Up 4.2%

Shares of DraftKings stock traded up $1.02 during trading hours on Tuesday, hitting $25.29. The company’s stock had a trading volume of 3,623,633 shares, compared to its average volume of 13,909,658. DraftKings has a 1-year low of $20.46 and a 1-year high of $48.78. The business has a fifty day moving average of $25.33 and a 200 day moving average of $24.86. The company has a market capitalization of $12.55 billion, a PE ratio of -66.55 and a beta of 1.66. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 3.03.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on DKNG. Weiss Ratings reiterated a “sell (d)” rating on shares of DraftKings in a research report on Friday. Sanford C. Bernstein set a $27.00 price target on shares of DraftKings in a research report on Thursday. UBS Group increased their price target on shares of DraftKings from $43.00 to $49.00 and gave the company a “buy” rating in a research report on Friday, June 5th. Raymond James Financial upgraded shares of DraftKings from a “market perform” rating to an “outperform” rating in a research report on Friday, April 24th. Finally, Jefferies Financial Group reiterated a “buy” rating on shares of DraftKings in a research report on Wednesday, June 10th. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, DraftKings has a consensus rating of “Moderate Buy” and an average target price of $34.05.

Insider Buying and Selling at DraftKings

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

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Sivia Capital Partners LLC bought a new stake in DraftKings in the 2nd quarter valued at about $603,000. Main Street Financial Solutions LLC bought a new stake in shares of DraftKings during the 4th quarter worth about $230,000. Magnetar Financial LLC bought a new stake in shares of DraftKings during the 4th quarter worth about $227,000. PCM Encore LLC bought a new stake in shares of DraftKings during the 4th quarter worth about $256,000. Finally, Banco Santander S.A. bought a new stake in shares of DraftKings during the 4th quarter worth about $253,000. 37.70% of the stock is owned by institutional investors and hedge funds.

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.