Brokerages Set DraftKings Inc. (NASDAQ:DKNG) Price Target at $34.32

Shares of DraftKings Inc. (NASDAQ:DKNG) have received a consensus recommendation of “Moderate Buy” from the thirty-nine ratings firms that are currently covering the firm, MarketBeat reports. Two research analysts have rated the stock with a sell rating, nine have assigned a hold rating, twenty-seven have assigned a buy rating and one has issued a strong buy rating on the company. The average twelve-month price objective among brokerages that have issued a report on the stock in the last year is $34.1467.

Several research firms have recently weighed in on DKNG. Moffett Nathanson cut DraftKings from a “buy” rating to a “neutral” rating and reduced their price objective for the company from $38.00 to $27.00 in a research report on Friday, April 24th. BNP Paribas Exane began coverage on DraftKings in a research report on Thursday, May 14th. They issued an “underperform” rating and a $20.00 target price for the company. Raymond James Financial raised DraftKings from a “market perform” rating to an “outperform” rating in a research report on Friday, April 24th. The Goldman Sachs Group reduced their target price on DraftKings from $54.00 to $31.00 and set a “buy” rating for the company in a research report on Tuesday, February 17th. Finally, Truist Financial reduced their target price on DraftKings from $33.00 to $30.00 and set a “buy” rating for the company in a research report on Tuesday, April 21st.

Insider Activity

In other DraftKings news, insider Paul Liberman sold 484,417 shares of DraftKings stock in a transaction that occurred on Wednesday, March 11th. The stock was sold at an average price of $25.16, for a total transaction of $12,187,931.72. Following the sale, the insider directly 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Jocelyn Moore sold 2,150 shares of DraftKings stock in a transaction that occurred 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 in the company, valued at $35,993.60. The trade was a 60.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 521,663 shares of company stock worth $13,144,962. Corporate insiders own 47.18% of the company’s stock.

Institutional Investors Weigh In On DraftKings

A number of institutional investors have recently added to or reduced their stakes in DKNG. Viking Global Investors LP acquired a new position in DraftKings during the third quarter worth $561,125,000. Capital World Investors raised its stake in DraftKings by 181.4% during the fourth quarter. Capital World Investors now owns 18,626,429 shares of the company’s stock worth $641,867,000 after acquiring an additional 12,008,357 shares in the last quarter. Janus Henderson Group PLC raised its stake in DraftKings by 50.8% during the fourth quarter. Janus Henderson Group PLC now owns 25,313,909 shares of the company’s stock worth $858,893,000 after acquiring an additional 8,524,923 shares in the last quarter. Norges Bank acquired a new position in DraftKings during the fourth quarter worth $284,466,000. Finally, Spruce House Investment Management LLC raised its stake in DraftKings by 129.6% during the first quarter. Spruce House Investment Management LLC now owns 9,650,000 shares of the company’s stock worth $208,633,000 after acquiring an additional 5,446,166 shares in the last quarter. 37.70% of the stock is owned by institutional investors and hedge funds.

DraftKings Stock Down 0.7%

DKNG opened at $25.12 on Friday. DraftKings has a 1-year low of $20.46 and a 1-year high of $48.78. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 3.03. The stock has a market capitalization of $12.46 billion, a price-to-earnings ratio of 418.62 and a beta of 1.66. The business has a 50 day moving average of $23.69 and a 200-day moving average of $27.66.

DraftKings (NASDAQ:DKNG) last posted 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). DraftKings had a net margin of 0.93% and a return on equity of 13.51%. The business had revenue of $1.65 billion during the quarter, compared to the consensus estimate of $1.63 billion. During the same period in the prior year, the company posted ($0.07) earnings per share. The firm’s revenue was up 16.8% compared to the same quarter last year. As a group, sell-side analysts anticipate that DraftKings will post 0.6 earnings per share for the current year.

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.