DraftKings (NASDAQ:DKNG) Upgraded to “Strong Sell” at BNP Paribas Exane

BNP Paribas Exane upgraded shares of DraftKings (NASDAQ:DKNG) to a strong sell rating in a research note published on Thursday,Zacks.com reports.

Several other research analysts have also commented on the stock. Citizens Jmp dropped their price target on shares of DraftKings from $38.00 to $34.00 and set a “market outperform” rating on the stock in a research note on Wednesday, April 1st. Guggenheim reduced their price objective on shares of DraftKings from $37.00 to $35.00 and set a “buy” rating for the company in a research note on Monday. 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. Needham & Company LLC reissued a “buy” rating and set a $35.00 target price on shares of DraftKings in a research report on Monday. Finally, Mizuho boosted their price target on DraftKings from $44.00 to $45.00 and gave the stock an “outperform” rating in a research report on Tuesday. Twenty-seven research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $34.32.

DraftKings Stock Performance

Shares of NASDAQ DKNG opened at $25.15 on Thursday. The company has a debt-to-equity ratio of 3.03, a current ratio of 1.02 and a quick ratio of 1.03. DraftKings has a one year low of $20.46 and a one year high of $48.78. The business’s 50-day moving average price is $23.68 and its two-hundred day moving average price is $28.16. The company has a market capitalization of $12.48 billion, a P/E ratio of 419.17, a price-to-earnings-growth ratio of 1.17 and a beta of 1.67.

DraftKings (NASDAQ:DKNG) last announced its quarterly earnings results on Thursday, May 7th. The company reported $0.20 EPS for the quarter, missing the consensus estimate of $0.22 by ($0.02). The firm had revenue of $1.65 billion during the quarter, compared to the consensus estimate of $1.63 billion. DraftKings had a net margin of 0.93% and a return on equity of 13.51%. The company’s quarterly revenue was up 16.8% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.07) EPS. Analysts anticipate that DraftKings will post 0.56 earnings per share for the current fiscal year.

Insider Activity

In other DraftKings news, insider Paul Liberman sold 484,417 shares of the business’s stock in a transaction on Wednesday, March 11th. The shares were sold at an average price of $25.16, for a total transaction of $12,187,931.72. Following the completion of the transaction, the insider owned 213,597 shares of the company’s stock, valued at $5,374,100.52. The trade was a 69.40% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Harry Sloan purchased 100,000 shares of the firm’s stock in a transaction on Tuesday, February 17th. The shares were purchased at an average price of $21.85 per share, with a total value of $2,185,000.00. Following the completion of the acquisition, the director directly owned 350,219 shares of the company’s stock, valued at approximately $7,652,285.15. This trade represents a 39.96% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders sold a total of 496,718 shares of company stock valued at $12,477,308 in the last quarter. 47.18% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On DraftKings

Large investors have recently made changes to their positions in the business. Dagco Inc. acquired a new stake in DraftKings in the 4th quarter valued at approximately $26,000. Ascentis Independent Advisors bought a new stake in shares of DraftKings in the first quarter valued at approximately $27,000. Ameriflex Group Inc. boosted its position in shares of DraftKings by 100.0% in the third quarter. Ameriflex Group Inc. now owns 810 shares of the company’s stock valued at $30,000 after acquiring an additional 405 shares during the period. Root Financial Partners LLC acquired a new stake in shares of DraftKings in the third quarter worth $33,000. Finally, Asset Dedication LLC bought a new position in DraftKings during the third quarter worth $37,000. Institutional investors and hedge funds own 37.70% of the company’s stock.

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.