DraftKings (NASDAQ:DKNG) Stock: Insider Gregory Westin Wendt Purchases 5,000 Shares

DraftKings Inc. (NASDAQ:DKNG) Director Gregory Wendt acquired 5,000 shares of DraftKings stock in a transaction on Wednesday, November 11th. The shares were purchased at an average cost of $19.76 per share, with a total value of $98,800.00. Following the completion of the acquisition, the director owned 22,920 shares of the company’s stock, valued at $452,899.20. This trade represents a 27.90% increase in their position. The acquisition was disclosed in a filing with the SEC, which is accessible through the SEC website.

DraftKings Stock Performance

NASDAQ:DKNG traded down $0.23 during trading hours on Friday, reaching $18.89. The stock had a trading volume of 12,121,178 shares, compared to its average volume of 17,835,516. The stock has a market cap of $9.41 billion, a P/E ratio of -23.61, a price-to-earnings-growth ratio of 2.51 and a beta of 1.65. The stock has a 50 day simple moving average of $20.99 and a 200 day simple moving average of $23.77. The company has a debt-to-equity ratio of 12.21, a quick ratio of 1.02 and a current ratio of 0.99. DraftKings Inc. has a 12-month low of $16.55 and a 12-month high of $36.98.

DraftKings (NASDAQ:DKNG) last issued its quarterly earnings results on Thursday, November 5th. The company reported ($0.53) EPS for the quarter, missing analysts’ consensus estimates of ($0.41) by ($0.12). The firm had revenue of $1.33 billion for the quarter, compared to analysts’ expectations of $1.39 billion. DraftKings had a negative net margin of 5.91% and a negative return on equity of 43.92%. The firm’s quarterly revenue was up 16.2% on a year-over-year basis. During the same period in the prior year, the company earned ($0.26) EPS. On average, research analysts forecast that DraftKings Inc. will post 0.31 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the stock. Berenberg Bank lowered shares of DraftKings from a “buy” rating to a “hold” rating and cut their target price for the stock from $27.50 to $20.00 in a research report on Tuesday, November 10th. Wall Street Zen lowered shares of DraftKings from a “sell” rating to a “strong sell” rating in a research report on Saturday. Sanford C. Bernstein dropped their price target on shares of DraftKings from $27.00 to $22.00 and set an “outperform” rating on the stock in a research note on Monday, November 9th. Morgan Stanley dropped their price target on shares of DraftKings from $36.00 to $31.00 and set an “overweight” rating on the stock in a research note on Monday, October 19th. Finally, Benchmark raised their price objective on shares of DraftKings from $29.00 to $30.00 and gave the stock a “buy” rating in a report on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating, eleven have given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $27.61.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Spruce House Investment Management LLC grew its position in DraftKings by 129.6% during the 1st quarter. Spruce House Investment Management LLC now owns 9,650,000 shares of the company’s stock worth $208,633,000 after acquiring an additional 5,446,166 shares during the last quarter. Janus Henderson Group PLC lifted its position in DraftKings by 9.3% in the first quarter. Janus Henderson Group PLC now owns 27,665,699 shares of the company’s stock valued at $588,288,000 after purchasing an additional 2,351,790 shares during the last quarter. Bank of New York Mellon Corp bought a new stake in DraftKings in the second quarter valued at approximately $24,014,000. Renaissance Technologies LLC bought a new stake in DraftKings in the first quarter valued at approximately $17,660,000. Finally, Quantinno Capital Management LP boosted its stake in shares of DraftKings by 273.9% during the first quarter. Quantinno Capital Management LP now owns 898,241 shares of the company’s stock valued at $19,420,000 after purchasing an additional 658,006 shares during the period. Institutional investors own 37.70% of the company’s stock.

Top DraftKings Stories

Investors following DKNG have been watching these stories:

• Positive Sentiment: Director Gregory Wendt bought 5,000 shares for about $98,800, increasing his personal stake by nearly 28%. The purchase may signal confidence from an insider, though it does not resolve the company’s business risks. Director share purchase
• Neutral Sentiment: Zacks Research raised its rating from “strong sell” to “hold,” a less negative view but not a buy recommendation. Zacks rating change
• Negative Sentiment: Analyst caution has also weighed on sentiment: Wells Fargo downgraded the stock, and several firms cut price targets. The latest reported quarter also missed analyst expectations for both adjusted earnings per share and revenue, despite year-over-year revenue growth. Wells Fargo downgrade

About DraftKings

DraftKings Inc. is a digital sports and entertainment company founded in 2012. It began as a daily fantasy sports platform and has since expanded into online sports betting and gaming. The company offers daily fantasy contests, a sportsbook and online casino products, including games such as slots and table games. Its services are available in a range of U.S. jurisdictions and in Ontario, Canada, where permitted by local regulations. DraftKings is headquartered in Boston, Massachusetts. Co-founder Jason Robins serves as the company’s chief executive officer.