DraftKings (NASDAQ:DKNG) Trading 5.6% Higher – What’s Next?

DraftKings Inc. (NASDAQ:DKNG)’s stock price shot up 5.6% during mid-day trading on Friday . The stock traded as high as $25.67 and last traded at $25.58. 5,191,186 shares were traded during trading, a decline of 61% from the average daily volume of 13,474,458 shares. The stock had previously closed at $24.22.

Analysts Set New Price Targets

Several equities analysts have commented on the company. JPMorgan Chase & Co. cut their price objective on DraftKings from $34.00 to $33.00 and set an “overweight” rating on the stock in a research report on Monday, August 10th. TD Cowen raised their target price on shares of DraftKings from $30.00 to $35.00 and gave the stock a “buy” rating in a research report on Friday, July 10th. Morgan Stanley reduced their price target on shares of DraftKings from $39.00 to $36.00 and set an “overweight” rating for the company in a report on Thursday, July 23rd. Wall Street Zen downgraded shares of DraftKings from a “hold” rating to a “sell” rating in a research note on Saturday, August 15th. Finally, Mizuho upped their target price on DraftKings from $44.00 to $45.00 and gave the stock an “outperform” rating in a report on Tuesday, May 12th. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $34.11.

DraftKings Trading Up 6.2%

The company’s 50 day moving average price is $24.89 and its two-hundred day moving average price is $24.53. The company has a debt-to-equity ratio of 3.22, a current ratio of 1.02 and a quick ratio of 1.02. The stock has a market capitalization of $12.77 billion, a PE ratio of -67.68 and a beta of 1.66.

DraftKings (NASDAQ:DKNG) last posted its earnings results on Friday, August 7th. The company reported $0.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.02 by $0.07. DraftKings had a negative return on equity of 11.26% and a negative net margin of 2.68%.The company had revenue of $1.44 billion during the quarter, compared to analysts’ expectations of $1.51 billion. During the same quarter last year, the firm earned $0.30 earnings per share. The firm’s quarterly revenue was down 4.6% compared to the same quarter last year. As a group, analysts expect that DraftKings Inc. will post 0.51 earnings per share for the current year.

Insider Transactions at DraftKings

In related news, insider R Stanton Dodge sold 62,500 shares of the business’s stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $29.68, for a total value of $1,855,000.00. Following the sale, the insider directly owned 556,258 shares in the company, valued at approximately $16,509,737.44. The trade was a 10.10% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Jocelyn Moore sold 10,759 shares of the company’s stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $24.05, for a total transaction of $258,753.95. Following the completion of the transaction, the director directly owned 1,881 shares in the company, valued at $45,238.05. The trade was a 85.12% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 47.18% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On DraftKings

A number of institutional investors and hedge funds have recently made changes to their positions in DKNG. Montag A & Associates Inc. boosted its position in shares of DraftKings by 82.5% during the 4th quarter. Montag A & Associates Inc. now owns 1,106 shares of the company’s stock worth $38,000 after purchasing an additional 500 shares during the period. CoreCap Advisors LLC increased its holdings in DraftKings by 336.5% in the 2nd quarter. CoreCap Advisors LLC now owns 1,148 shares of the company’s stock valued at $29,000 after purchasing an additional 885 shares during the last quarter. SHP Wealth Management purchased a new stake in DraftKings in the fourth quarter valued at approximately $42,000. Basecamp Wealth Advisors LLC raised 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 valued at $27,000 after purchasing an additional 1,206 shares during the period. Finally, Ascentis Independent Advisors acquired a new position in DraftKings during the first quarter worth $27,000. 37.70% of the stock is owned by hedge funds and other institutional investors.

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.