DraftKings (NASDAQ:DKNG) Upgraded by Freedom Capital to “Strong-Buy” Rating

DraftKings (NASDAQ:DKNG) was upgraded by analysts at Freedom Capital to a “strong-buy” rating in a research report issued on Wednesday,Zacks.com reports.

Several other research firms also recently weighed in on DKNG. Northland Securities set a $27.00 target price on DraftKings in a research report on Monday, May 11th. Barclays raised their price target on shares of DraftKings from $33.00 to $35.00 and gave the stock an “overweight” rating in a research note on Monday, May 11th. JPMorgan Chase & Co. decreased their price objective on shares of DraftKings from $32.00 to $31.00 and set an “overweight” rating for the company in a report on Thursday, April 16th. Citigroup boosted their price objective on shares of DraftKings from $29.00 to $30.00 and gave the company a “buy” rating in a research report on Tuesday, May 12th. Finally, Wells Fargo & Company restated an “overweight” rating and issued a $32.00 target price on shares of DraftKings in a research note on Sunday, May 10th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, DraftKings currently has a consensus rating of “Moderate Buy” and a consensus target price of $34.32.

DraftKings Price Performance

DKNG stock opened at $25.40 on Wednesday. DraftKings has a 12 month low of $20.46 and a 12 month high of $48.78. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 3.03. The company has a 50-day moving average price of $23.69 and a 200 day moving average price of $27.96. The stock has a market cap of $12.60 billion, a PE ratio of 423.33 and a beta of 1.67.

DraftKings (NASDAQ:DKNG) last posted its quarterly earnings data on Friday, May 8th. The company reported $0.20 earnings per share for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.02). DraftKings had a return on equity of 13.51% and a net margin of 0.93%.The firm had revenue of $1.65 billion during the quarter, compared to analysts’ expectations of $1.63 billion. During the same period last year, the company earned ($0.07) earnings per share. The business’s revenue for the quarter was up 16.8% compared to the same quarter last year. Equities research analysts anticipate that DraftKings will post 0.62 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Jocelyn Moore sold 2,150 shares of the business’s stock in a transaction that occurred on Friday, March 13th. The stock was sold at an average price of $25.60, for a total value of $55,040.00. Following the completion of the sale, the director directly owned 1,406 shares in the company, valued at $35,993.60. The trade was a 60.46% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Paul Liberman sold 484,417 shares of the company’s stock in a transaction that occurred on Wednesday, March 11th. The stock was sold at an average price of $25.16, for a total value of $12,187,931.72. Following the transaction, the insider directly owned 213,597 shares of the company’s stock, valued at approximately $5,374,100.52. The trade was a 69.40% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 523,684 shares of company stock worth $13,193,934. 47.18% of the stock is owned by company insiders.

Hedge Funds Weigh In On DraftKings

A number of large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its position in shares of DraftKings by 3.1% during the fourth quarter. Vanguard Group Inc. now owns 44,758,204 shares of the company’s stock worth $1,542,368,000 after buying an additional 1,354,457 shares in the last quarter. Citigroup Inc. raised its holdings in shares of DraftKings by 40.6% in the 3rd quarter. Citigroup Inc. now owns 1,939,764 shares of the company’s stock valued at $72,547,000 after purchasing an additional 560,139 shares in the last quarter. Bedell Frazier Investment Counselling LLC purchased a new stake in shares of DraftKings during the 3rd quarter worth $4,492,000. Waycross Partners LLC purchased a new stake in shares of DraftKings during the 4th quarter worth $2,584,000. Finally, DAVENPORT & Co LLC grew its stake in shares of DraftKings by 11.2% during the fourth quarter. DAVENPORT & Co LLC now owns 3,456,735 shares of the company’s stock worth $119,602,000 after purchasing an additional 348,333 shares in the last quarter. 37.70% of the stock is currently 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.