Freedom Capital Upgrades DraftKings (NASDAQ:DKNG) to “Strong-Buy”

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

A number of other brokerages also recently issued reports on DKNG. Wedbush began coverage on DraftKings in a research report on Friday, April 24th. They set an “outperform” rating on the stock. Rothschild & Co Redburn set a $35.00 target price on DraftKings in a research report on Friday, January 30th. Wells Fargo & Company reissued an “overweight” rating and issued a $32.00 target price on shares of DraftKings in a research report on Sunday, May 10th. Zacks Research downgraded DraftKings from a “hold” rating to a “strong sell” rating in a research report on Thursday, February 19th. Finally, Argus downgraded DraftKings from a “buy” rating to a “hold” rating in a research report on Tuesday, March 17th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $34.32.

DraftKings Stock Performance

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

DraftKings (NASDAQ:DKNG) last issued its quarterly earnings results on Friday, May 8th. The company reported $0.20 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.02). The business had revenue of $1.65 billion for the quarter, compared to analyst estimates of $1.63 billion. DraftKings had a return on equity of 13.51% and a net margin of 0.93%.The business’s revenue for the quarter was up 16.8% on a year-over-year basis. During the same period in the previous year, the company posted ($0.07) earnings per share. Analysts expect that DraftKings will post 0.62 earnings per share for the current fiscal year.

Insider Transactions at DraftKings

In other DraftKings news, Director Jocelyn Moore sold 2,150 shares of the company’s stock in a transaction on Friday, March 13th. The shares were sold at an average price of $25.60, for a total value of $55,040.00. Following the sale, the director directly owned 1,406 shares of the company’s stock, valued at approximately $35,993.60. This represents a 60.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Woodrow Levin sold 34,234 shares of the company’s stock in a transaction on Monday, May 18th. The shares were sold at an average price of $25.71, for a total transaction of $880,156.14. Following the completion of the sale, the director directly owned 29,820 shares in the company, valued at approximately $766,672.20. The trade was a 53.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 523,684 shares of company stock valued at $13,193,934 in the last quarter. Insiders own 47.18% of the company’s stock.

Institutional Investors Weigh In On DraftKings

Several hedge funds have recently added to or reduced their stakes in the business. IHT Wealth Management LLC boosted its holdings in DraftKings by 4.1% in the second quarter. IHT Wealth Management LLC now owns 6,271 shares of the company’s stock valued at $269,000 after purchasing an additional 248 shares during the last quarter. Orion Porfolio Solutions LLC boosted its holdings in DraftKings by 3.1% in the third quarter. Orion Porfolio Solutions LLC now owns 10,608 shares of the company’s stock valued at $397,000 after purchasing an additional 321 shares during the last quarter. Global Retirement Partners LLC boosted its holdings in DraftKings by 3.8% in the fourth quarter. Global Retirement Partners LLC now owns 10,365 shares of the company’s stock valued at $357,000 after purchasing an additional 379 shares during the last quarter. Ameriflex Group Inc. boosted its holdings in 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 purchasing an additional 405 shares during the last quarter. Finally, Centaurus Financial Inc. boosted its holdings in DraftKings by 4.1% in the third quarter. Centaurus Financial Inc. now owns 10,511 shares of the company’s stock valued at $393,000 after purchasing an additional 410 shares during the last quarter. 37.70% of the stock is owned by hedge funds and other 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.