DraftKings (NASDAQ:DKNG) Sees Large Volume Increase Following Analyst Upgrade

DraftKings Inc. (NASDAQ:DKNG) shares saw unusually-high trading volume on Friday after Benchmark raised their price target on the stock from $50.00 to $52.00. Benchmark currently has a buy rating on the stock. Approximately 10,770,857 shares were traded during trading, a decline of 7% from the previous session’s volume of 11,519,905 shares.The stock last traded at $42.23 and had previously closed at $43.03.

DKNG has been the subject of several other research reports. Wells Fargo & Company lifted their price target on shares of DraftKings from $39.00 to $53.00 and gave the stock an “overweight” rating in a research report on Tuesday, February 20th. Stifel Nicolaus upgraded shares of DraftKings from a “hold” rating to a “buy” rating and upped their target price for the company from $40.00 to $45.00 in a research report on Friday, January 19th. Morgan Stanley raised their price target on DraftKings from $49.00 to $50.00 and gave the stock an “overweight” rating in a research report on Tuesday, April 9th. Moffett Nathanson upped their price objective on DraftKings from $52.00 to $55.00 and gave the company a “buy” rating in a report on Thursday, March 28th. Finally, JPMorgan Chase & Co. reissued an “overweight” rating and issued a $55.00 target price on shares of DraftKings in a research note on Thursday, March 28th. Two investment analysts have rated the stock with a sell rating, one has issued a hold rating and twenty-five have given a buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $47.45.

Insiders Place Their Bets

In other news, insider Jason Robins sold 200,000 shares of the stock in a transaction that occurred on Monday, April 22nd. The stock was sold at an average price of $40.91, for a total value of $8,182,000.00. Following the completion of the sale, the insider now owns 3,043,231 shares of the company’s stock, valued at approximately $124,498,580.21. The transaction was disclosed in a legal filing with the SEC, which is available at this link. In other news, insider Jason Robins sold 200,000 shares of the company’s stock in a transaction dated Monday, April 22nd. The shares were sold at an average price of $40.91, for a total value of $8,182,000.00. Following the sale, the insider now directly owns 3,043,231 shares of the company’s stock, valued at approximately $124,498,580.21. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, insider R Stanton Dodge sold 686,101 shares of the firm’s stock in a transaction dated Thursday, February 8th. The shares were sold at an average price of $43.06, for a total transaction of $29,543,509.06. Following the completion of the sale, the insider now owns 200,239 shares of the company’s stock, valued at $8,622,291.34. The disclosure for this sale can be found here. Insiders have sold 1,086,101 shares of company stock valued at $45,903,509 in the last 90 days. 51.19% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Highlander Capital Management LLC increased its holdings in shares of DraftKings by 180.0% in the fourth quarter. Highlander Capital Management LLC now owns 700 shares of the company’s stock valued at $25,000 after purchasing an additional 450 shares during the last quarter. LifeSteps Financial Inc. acquired a new position in DraftKings in the 1st quarter valued at about $33,000. Transcendent Capital Group LLC acquired a new position in DraftKings in the 4th quarter valued at about $26,000. Concord Wealth Partners raised its holdings in DraftKings by 140.2% in the 1st quarter. Concord Wealth Partners now owns 776 shares of the company’s stock valued at $35,000 after acquiring an additional 453 shares during the period. Finally, Montag A & Associates Inc. acquired a new stake in DraftKings during the fourth quarter worth approximately $29,000. 37.70% of the stock is owned by institutional investors and hedge funds.

DraftKings Trading Down 2.8 %

The company has a market cap of $36.24 billion, a P/E ratio of -23.90 and a beta of 1.87. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 1.49. The business has a fifty day moving average price of $43.57 and a 200-day moving average price of $38.70.

DraftKings (NASDAQ:DKNG) last released its quarterly earnings results on Thursday, May 2nd. The company reported ($0.30) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.28) by ($0.02). The firm had revenue of $1.18 billion during the quarter, compared to the consensus estimate of $1.12 billion. DraftKings had a negative net margin of 21.88% and a negative return on equity of 87.24%. The business’s revenue for the quarter was up 52.7% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.87) earnings per share. On average, analysts forecast that DraftKings Inc. will post -0.24 earnings per share for the current year.

DraftKings Company Profile

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.