DraftKings (NASDAQ:DKNG) Cut to “Sell” at Wall Street Zen

Wall Street Zen lowered shares of DraftKings (NASDAQ:DKNG) from a hold rating to a sell rating in a research note published on Saturday morning.

Several other analysts also recently issued reports on the stock. New Street Research set a $29.00 price target on shares of DraftKings in a research report on Monday, June 1st. Wells Fargo & Company lowered their price objective on DraftKings from $32.00 to $29.00 and set an “overweight” rating for the company in a research note on Monday, July 20th. 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. BNP Paribas Exane began coverage on DraftKings in a report on Thursday, May 14th. They set an “underperform” rating and a $20.00 price target for the company. Finally, Stifel Nicolaus lowered their price target on DraftKings from $40.00 to $38.00 and set a “buy” rating for the company in a research report on Wednesday, July 22nd. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, eight have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $34.11.

DraftKings Stock Performance

NASDAQ DKNG opened at $25.30 on Friday. The company has a market capitalization of $12.56 billion, a P/E ratio of -66.58 and a beta of 1.66. DraftKings has a 12-month low of $20.46 and a 12-month high of $48.78. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 3.22. The firm has a 50-day moving average price of $25.37 and a two-hundred day moving average price of $24.67.

DraftKings (NASDAQ:DKNG) last issued its quarterly earnings results on Thursday, August 6th. The company reported $0.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.02 by $0.07. The company had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.51 billion. DraftKings had a negative return on equity of 11.26% and a negative net margin of 2.68%.The company’s revenue for the quarter was down 4.6% compared to the same quarter last year. During the same quarter last year, the company posted $0.30 EPS. Analysts anticipate that DraftKings will post 0.54 earnings per share for the current year.

Insider Transactions at DraftKings

In related news, insider R Stanton Dodge sold 62,500 shares of the firm’s stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $29.68, for a total transaction of $1,855,000.00. Following the completion of the sale, the insider owned 556,258 shares in the company, valued at approximately $16,509,737.44. This trade represents a 10.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 47.18% of the company’s stock.

Institutional Trading of DraftKings

A number of large investors have recently bought and sold shares of DKNG. Vanguard Group Inc. grew its holdings in DraftKings by 3.1% during the 4th quarter. Vanguard Group Inc. now owns 44,758,204 shares of the company’s stock valued at $1,542,368,000 after buying an additional 1,354,457 shares in the last quarter. Janus Henderson Group PLC lifted its position in DraftKings by 9.3% in the 1st quarter. Janus Henderson Group PLC now owns 27,665,699 shares of the company’s stock worth $588,288,000 after buying an additional 2,351,790 shares during the last quarter. Viking Global Investors LP increased its holdings in shares of DraftKings by 27.4% in the fourth quarter. Viking Global Investors LP now owns 19,119,912 shares of the company’s stock worth $658,872,000 after buying an additional 4,116,561 shares during the period. Capital World Investors raised its holdings in DraftKings by 181.4% during the 4th quarter. Capital World Investors now owns 18,626,429 shares of the company’s stock valued at $641,867,000 after buying an additional 12,008,357 shares during the last quarter. Finally, AQR Capital Management LLC grew its stake in shares of DraftKings by 41.0% in the fourth quarter. AQR Capital Management LLC now owns 16,474,009 shares of the company’s stock worth $567,694,000 after purchasing an additional 4,788,337 shares during the last quarter. 37.70% of the stock is owned by hedge funds and other institutional investors.

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.