DraftKings (NASDAQ:DKNG) Stock Rating Upgraded by Zacks Research

DraftKings (NASDAQ:DKNG) was upgraded by analysts at Zacks Research from a “strong sell” rating to a “hold” rating in a research note issued on Wednesday,Zacks.com reports.

Several other equities research analysts have also weighed in on the stock. Deutsche Bank Aktiengesellschaft lowered shares of DraftKings from a “hold” rating to a “hold” rating in a report on Friday, April 24th. Guggenheim decreased their price objective on shares of DraftKings from $37.00 to $35.00 and set a “buy” rating on the stock in a research note on Monday, May 11th. Morgan Stanley reiterated an “overweight” rating on shares of DraftKings in a research note on Thursday. Rothschild & Co Redburn set a $35.00 price target on DraftKings in a research report on Friday, January 30th. Finally, The Goldman Sachs Group dropped their price target on DraftKings from $54.00 to $31.00 and set a “buy” rating for the company in a report on Tuesday, February 17th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $34.32.

DraftKings Price Performance

Shares of DraftKings stock opened at $25.40 on Wednesday. The firm has a market cap of $12.60 billion, a P/E ratio of 423.33 and a beta of 1.67. The firm’s 50-day simple moving average is $23.69 and its 200-day simple moving average is $27.96. DraftKings has a twelve month low of $20.46 and a twelve month high of $48.78. The company has a debt-to-equity ratio of 3.03, a quick ratio of 1.02 and a current ratio of 1.02.

DraftKings (NASDAQ:DKNG) last released its quarterly earnings data on Friday, May 8th. The company reported $0.20 earnings per share for the quarter, missing the consensus estimate of $0.22 by ($0.02). The company 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 revenue for the quarter was up 16.8% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.07) earnings per share. As a group, research analysts expect that DraftKings will post 0.62 EPS for the current fiscal year.

Insider Transactions at DraftKings

In other news, CAO Erik Bradbury sold 2,883 shares of the company’s stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $24.56, for a total transaction of $70,806.48. Following the transaction, the chief accounting officer owned 38,168 shares of the company’s stock, valued at $937,406.08. This represents a 7.02% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Paul Liberman sold 484,417 shares of DraftKings stock in a transaction dated 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 completion of the sale, the insider 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. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 523,684 shares of company stock valued at $13,193,934 over the last quarter. Corporate insiders own 47.18% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Ariadne Wealth Management LP lifted its stake in DraftKings by 11.8% in the first quarter. Ariadne Wealth Management LP now owns 12,525 shares of the company’s stock valued at $271,000 after buying an additional 1,324 shares during the period. Edgestream Partners L.P. bought a new position in DraftKings during the 1st quarter worth approximately $4,473,000. Janus Henderson Group PLC boosted its position in shares of DraftKings by 9.3% during the first quarter. Janus Henderson Group PLC now owns 27,665,699 shares of the company’s stock worth $588,288,000 after purchasing an additional 2,351,790 shares in the last quarter. Centaurus Financial Inc. grew its holdings in shares of DraftKings by 25.5% in the 1st quarter. Centaurus Financial Inc. now owns 13,769 shares of the company’s stock valued at $298,000 after buying an additional 2,797 shares during the period. Finally, Bull Harbor Capital LLC acquired a new stake in DraftKings during the 1st quarter worth $758,000. 37.70% of the stock is currently owned by institutional investors.

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.