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

DraftKings Inc. (NASDAQ:DKNG) has received a consensus rating of “Moderate Buy” from the thirty-two analysts that are presently covering the company, MarketBeat reports. Two research analysts have rated the stock with a sell rating, four have given a hold rating and twenty-six have issued a buy rating on the company. The average 1-year price target among analysts that have updated their coverage on the stock in the last year is $48.3793.

Several equities analysts have recently issued reports on the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of DraftKings in a research report on Wednesday, October 8th. Benchmark reaffirmed a “buy” rating on shares of DraftKings in a report on Monday. Susquehanna cut their price target on shares of DraftKings from $59.00 to $48.00 and set a “positive” rating for the company in a report on Monday, November 10th. BMO Capital Markets reduced their price objective on shares of DraftKings from $65.00 to $63.00 and set an “outperform” rating for the company in a research report on Tuesday, November 4th. Finally, Guggenheim dropped their target price on shares of DraftKings from $55.00 to $45.00 and set a “buy” rating on the stock in a report on Monday, November 10th.

DraftKings Stock Down 2.6%

DraftKings stock opened at $28.82 on Tuesday. DraftKings has a 52 week low of $26.23 and a 52 week high of $53.61. The stock has a market cap of $14.35 billion, a price-to-earnings ratio of -50.56, a PEG ratio of 0.99 and a beta of 1.86. The company’s 50-day moving average price is $35.81 and its two-hundred day moving average price is $39.34. The company has a current ratio of 1.10, a quick ratio of 1.09 and a debt-to-equity ratio of 2.51.

DraftKings (NASDAQ:DKNG) last posted its quarterly earnings data on Friday, November 7th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.01 by ($0.27). DraftKings had a negative net margin of 4.90% and a negative return on equity of 22.84%. The company had revenue of $1.14 billion during the quarter, compared to the consensus estimate of $1.40 billion. During the same quarter last year, the business earned ($0.60) earnings per share. The company’s revenue was up 4.4% on a year-over-year basis. On average, analysts expect that DraftKings will post 0.64 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider R Stanton Dodge sold 105,554 shares of the stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $47.37, for a total transaction of $5,000,092.98. Following the completion of the sale, the insider owned 512,181 shares in the company, valued at approximately $24,262,013.97. This represents a 17.09% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Harry Sloan acquired 25,000 shares of DraftKings stock in a transaction dated Tuesday, November 11th. The shares were bought at an average cost of $30.30 per share, with a total value of $757,500.00. Following the completion of the purchase, the director owned 249,712 shares in the company, valued at approximately $7,566,273.60. This represents a 11.13% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have sold 295,919 shares of company stock valued at $12,109,102 in the last three months. Insiders own 47.08% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in DKNG. Keystone Financial Group lifted its position in shares of DraftKings by 1.9% in the 3rd quarter. Keystone Financial Group now owns 32,241 shares of the company’s stock valued at $1,206,000 after acquiring an additional 586 shares in the last quarter. Jacobs Levy Equity Management Inc. lifted its holdings in shares of DraftKings by 24.1% in the third quarter. Jacobs Levy Equity Management Inc. now owns 60,405 shares of the company’s stock valued at $2,259,000 after purchasing an additional 11,737 shares in the last quarter. NewEdge Advisors LLC boosted its position in shares of DraftKings by 2.9% in the third quarter. NewEdge Advisors LLC now owns 24,841 shares of the company’s stock worth $929,000 after buying an additional 704 shares during the period. Dark Forest Capital Management LP grew its holdings in shares of DraftKings by 295.3% during the third quarter. Dark Forest Capital Management LP now owns 43,672 shares of the company’s stock valued at $1,633,000 after buying an additional 32,625 shares in the last quarter. Finally, Utah Retirement Systems raised its position in DraftKings by 4.4% during the third quarter. Utah Retirement Systems now owns 79,312 shares of the company’s stock valued at $2,966,000 after buying an additional 3,308 shares during the period. 37.70% of the stock is owned by hedge funds and other institutional investors.

About DraftKings

DraftKings Inc operates as a digital sports entertainment and gaming company in the United States and internationally. It provides online sports betting and casino, daily fantasy sports, media, and other consumer products, as well as retails sportsbooks. The company also engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators.