DraftKings Inc. (NASDAQ:DKNG) Receives Average Rating of “Moderate Buy” from Brokerages

Shares of DraftKings Inc. (NASDAQ:DKNG) have earned an average rating of “Moderate Buy” from the forty research firms that are covering the stock, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a sell recommendation, eight have assigned a hold recommendation, twenty-nine have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month price objective among brokerages that have issued a report on the stock in the last year is $34.1097.

A number of equities analysts have commented on the company. Wedbush began coverage on DraftKings in a report on Friday, April 24th. They set an “outperform” rating for the company. Weiss Ratings reaffirmed a “sell (d)” rating on shares of DraftKings in a research note on Friday, August 7th. Truist Financial set a $29.00 price target on DraftKings in a research report on Monday, August 10th. Morgan Stanley reduced their price objective on DraftKings from $39.00 to $36.00 and set an “overweight” rating for the company in a research note on Thursday, July 23rd. Finally, TD Cowen raised their price objective on DraftKings from $30.00 to $35.00 and gave the company a “buy” rating in a report on Friday, July 10th.

Insider Activity at DraftKings

In other news, insider R Stanton Dodge sold 62,500 shares of the 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 completion of the sale, the insider directly owned 556,258 shares in the company, valued at $16,509,737.44. This represents a 10.10% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 47.18% of the stock is owned by company insiders.

Hedge Funds Weigh In On DraftKings

Institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. grew its stake in DraftKings by 3.1% during the 4th quarter. Vanguard Group Inc. now owns 44,758,204 shares of the company’s stock valued at $1,542,368,000 after acquiring an additional 1,354,457 shares in the last quarter. Janus Henderson Group PLC lifted its stake in DraftKings by 9.3% in the 1st 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. Viking Global Investors LP boosted its holdings in shares of DraftKings by 27.4% during the 4th quarter. Viking Global Investors LP now owns 19,119,912 shares of the company’s stock worth $658,872,000 after purchasing an additional 4,116,561 shares during the last quarter. Capital World Investors boosted its holdings in shares of DraftKings by 181.4% during the 4th quarter. Capital World Investors now owns 18,626,429 shares of the company’s stock worth $641,867,000 after purchasing an additional 12,008,357 shares during the last quarter. Finally, AQR Capital Management LLC boosted its holdings in shares of DraftKings by 41.0% during the 4th quarter. AQR Capital Management LLC now owns 16,474,009 shares of the company’s stock worth $567,694,000 after purchasing an additional 4,788,337 shares during the last quarter. 37.70% of the stock is currently owned by institutional investors and hedge funds.

DraftKings Stock Performance

DKNG opened at $25.30 on Thursday. The firm’s fifty day simple moving average is $25.37 and its two-hundred day simple moving average is $24.67. DraftKings has a 52-week low of $20.46 and a 52-week high of $48.78. The company has a market cap of $12.56 billion, a price-to-earnings ratio of -66.58 and a beta of 1.66. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 3.22.

DraftKings (NASDAQ:DKNG) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.09 earnings per share for the quarter, topping the consensus estimate of $0.02 by $0.07. DraftKings had a negative net margin of 2.68% and a negative return on equity of 11.26%. The firm had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.51 billion. During the same quarter in the prior year, the firm earned $0.30 EPS. The company’s revenue for the quarter was down 4.6% on a year-over-year basis. Equities analysts anticipate that DraftKings will post 0.54 earnings per share for the current fiscal 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.