DraftKings (NASDAQ:DKNG) Trading Down 5.2% – Here’s Why

DraftKings Inc. (NASDAQ:DKNG) shares fell 5.2% during trading on Tuesday . The company traded as low as $51.27 and last traded at $50.72. 5,697,972 shares changed hands during mid-day trading, a decline of 39% from the average session volume of 9,283,876 shares. The stock had previously closed at $53.49.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on DKNG shares. Wells Fargo & Company upped their price target on DraftKings from $53.00 to $60.00 and gave the stock an “overweight” rating in a research note on Tuesday. Stifel Nicolaus raised their price target on DraftKings from $48.00 to $57.00 and gave the company a “buy” rating in a report on Tuesday. Macquarie upped their price target on shares of DraftKings from $50.00 to $51.00 and gave the stock an “outperform” rating in a research note on Monday, November 11th. Morgan Stanley raised their price objective on shares of DraftKings from $47.00 to $48.00 and gave the company an “overweight” rating in a research note on Tuesday, October 22nd. Finally, Piper Sandler reiterated an “overweight” rating and set a $60.00 price target (up previously from $48.00) on shares of DraftKings in a report on Tuesday. Three research analysts have rated the stock with a hold rating and twenty-four have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $53.69.

DraftKings Price Performance

The company has a market capitalization of $25.11 billion, a P/E ratio of -58.51, a price-to-earnings-growth ratio of 3.18 and a beta of 1.93. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.00 and a quick ratio of 1.00. The firm’s 50-day moving average is $40.96 and its 200-day moving average is $39.03.

DraftKings (NASDAQ:DKNG) last issued its quarterly earnings data on Thursday, February 13th. The company reported ($0.28) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.35). DraftKings had a negative net margin of 9.06% and a negative return on equity of 41.23%. Analysts predict that DraftKings Inc. will post -0.95 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Jason Robins sold 3,151 shares of the firm’s stock in a transaction on Thursday, November 21st. The shares were sold at an average price of $43.71, for a total transaction of $137,730.21. Following the sale, the insider now directly owns 2,631,033 shares in the company, valued at $115,002,452.43. This trade represents a 0.12 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider R Stanton Dodge sold 228,496 shares of DraftKings stock in a transaction on Monday, December 9th. The shares were sold at an average price of $42.74, for a total transaction of $9,765,919.04. Following the transaction, the insider now owns 541,884 shares in the company, valued at approximately $23,160,122.16. This trade represents a 29.66 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 1,163,742 shares of company stock worth $47,082,888 over the last quarter. 51.19% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On DraftKings

Hedge funds and other institutional investors have recently modified their holdings of the stock. Creative Planning lifted its position in shares of DraftKings by 21.8% in the third quarter. Creative Planning now owns 64,286 shares of the company’s stock worth $2,520,000 after buying an additional 11,511 shares in the last quarter. Bleakley Financial Group LLC boosted its position in shares of DraftKings by 3.7% during the 3rd quarter. Bleakley Financial Group LLC now owns 28,023 shares of the company’s stock valued at $1,098,000 after acquiring an additional 996 shares during the last quarter. V Square Quantitative Management LLC purchased a new position in shares of DraftKings in the third quarter valued at $46,000. Stratos Wealth Advisors LLC increased its position in DraftKings by 7.3% in the third quarter. Stratos Wealth Advisors LLC now owns 27,513 shares of the company’s stock worth $1,079,000 after purchasing an additional 1,877 shares during the last quarter. Finally, Blue Trust Inc. raised its stake in DraftKings by 94.0% during the third quarter. Blue Trust Inc. now owns 10,104 shares of the company’s stock valued at $386,000 after purchasing an additional 4,897 shares in the last quarter. Institutional investors own 37.70% of the company’s stock.

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.