DraftKings (NASDAQ:DKNG) Director Purchases $98,800.00 in Stock

DraftKings Inc. (NASDAQ:DKNG) Director Gregory Wendt bought 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, for a total transaction of $98,800.00. Following the acquisition, the director owned 22,920 shares in the company, valued at $452,899.20. The trade was a 27.90% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink.

DraftKings Stock Performance

Shares of DKNG traded down $0.23 during mid-day trading on Friday, hitting $18.89. The stock had a trading volume of 12,121,178 shares, compared to its average volume of 17,835,516. DraftKings Inc. has a fifty-two week low of $16.55 and a fifty-two week high of $36.98. The company has a quick ratio of 1.02, a current ratio of 0.99 and a debt-to-equity ratio of 12.21. The company has a market cap of $9.41 billion, a PE ratio of -23.61, a PEG ratio of 2.51 and a beta of 1.65. The company’s fifty day simple moving average is $20.99 and its two-hundred day simple moving average is $23.77.

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

Institutional Trading of DraftKings

Several hedge funds have recently made changes to their positions in DKNG. Ascentis Independent Advisors bought a new position in DraftKings during the 1st quarter worth $27,000. Basecamp Wealth Advisors LLC increased its position in DraftKings by 3,547.1% in the first quarter. Basecamp Wealth Advisors LLC now owns 1,240 shares of the company’s stock worth $27,000 after buying an additional 1,206 shares during the period. CoreCap Advisors LLC lifted its stake in DraftKings by 336.5% in the second 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. Heritage Family Offices LLP acquired a new position in shares of DraftKings during the third quarter valued at $44,000. Finally, Mirae Asset Global Investments Co. Ltd. acquired a new position in shares of DraftKings during the third quarter valued at $48,000. Institutional investors own 37.70% of the company’s stock.

Analyst Upgrades and Downgrades

Several analysts have weighed in on DKNG shares. Northland Securities set a $28.00 target price on shares of DraftKings in a research note on Monday, August 10th. Zacks Research upgraded shares of DraftKings from a “strong sell” rating to a “hold” rating in a research report on Wednesday. Stifel Nicolaus downgraded shares of DraftKings from a “buy” rating to a “hold” rating and reduced their price target for the stock from $32.00 to $21.00 in a research report on Monday, November 9th. Needham & Company LLC decreased their price target on shares of DraftKings from $30.00 to $25.00 and set a “buy” rating for the company in a report on Monday, November 9th. Finally, Sanford C. Bernstein lowered their price objective on shares of DraftKings from $27.00 to $22.00 and set an “outperform” rating for the company in a research report on Monday, November 9th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating, eleven have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $27.61.

Latest DraftKings News

Here’s some of the latest news about DKNG:

• 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
• Negative Sentiment: The main concern is DraftKings’ planned increase in investment in its Predictions business. A report says the company disclosed that its annual investment would double before year-end, prompting a sharp selloff and raising concerns about near-term costs and profitability. Securities investigation notice
• 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.