DraftKings (NASDAQ:DKNG) Sets New 12-Month Low – Time to Sell?

DraftKings Inc. (NASDAQ:DKNG)’s share price reached a new 52-week low during mid-day trading on Wednesday. The company traded as low as $18.50 and last traded at $18.7550, with a volume of 6,669,281 shares trading hands. The stock had previously closed at $19.72.

Wall Street Analyst Weigh In

Several brokerages have recently commented on DKNG. Bank of America upgraded shares of DraftKings from a “neutral” rating to a “buy” rating and set a $27.00 price target for the company in a research report on Monday, October 5th. Wall Street Zen downgraded shares of DraftKings from a “hold” rating to a “sell” rating in a research note on Saturday, August 15th. Citigroup cut their price objective on shares of DraftKings from $32.00 to $28.00 and set a “buy” rating on the stock in a report on Monday. TD Cowen raised their price objective on shares of DraftKings from $30.00 to $35.00 and gave the company a “buy” rating in a research note on Friday, July 10th. Finally, Wolfe Research initiated coverage on shares of DraftKings in a research note on Wednesday, September 2nd. They issued an “outperform” rating and a $40.00 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, DraftKings currently has a consensus rating of “Moderate Buy” and an average price target of $33.70.

DraftKings Stock Down 5.2%

The business has a fifty day moving average of $22.96 and a 200 day moving average of $24.03. 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 market cap of $9.28 billion, a P/E ratio of -49.22, a P/E/G ratio of 1.98 and a beta of 1.61.

DraftKings (NASDAQ:DKNG) last issued its earnings results on Friday, August 7th. The company reported $0.09 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.02 by $0.07. The firm had revenue of $1.44 billion for the quarter, compared to analysts’ expectations 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 was down 4.6% compared to the same quarter last year. During the same quarter last year, the business earned $0.30 earnings per share. On average, equities research analysts predict that DraftKings Inc. will post 0.40 EPS for the current year.

Insiders Place Their Bets

In other news, Director Jocelyn Moore sold 10,759 shares of DraftKings stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $24.05, for a total transaction of $258,753.95. Following the transaction, the director directly owned 1,881 shares of the company’s stock, valued at $45,238.05. This trade represents a 85.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 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

Hedge funds have recently added to or reduced their stakes in the business. CoreCap Advisors LLC boosted its holdings in shares of DraftKings by 336.5% in the 2nd 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 last quarter. SHP Wealth Management bought a new stake in shares of DraftKings in the 4th quarter valued at about $42,000. Basecamp Wealth Advisors LLC raised its holdings 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 valued at $27,000 after purchasing an additional 1,206 shares during the period. Ascentis Independent Advisors bought a new stake in shares of DraftKings in the 1st quarter valued at about $27,000. Finally, Strategic Investment Solutions Inc. IL acquired a new stake in DraftKings in the 4th quarter valued at about $69,000. Institutional investors and hedge funds own 37.70% of the company’s stock.

DraftKings Company Profile

DraftKings Inc is a digital sports entertainment and gaming company that provides online sports betting, daily fantasy sports and internet-based casino gaming. Its products are delivered through mobile applications and websites, allowing customers to wager on professional and collegiate sports, participate in fantasy contests and play a range of casino games where permitted by law.

The company also offers sports and betting-related content through DraftKings Network and operates additional gaming and entertainment products, including online lottery services in select markets.