FY2024 EPS Estimates for DraftKings Cut by Northland Capmk

DraftKings Inc. (NASDAQ:DKNG) – Stock analysts at Northland Capmk lowered their FY2024 earnings per share (EPS) estimates for DraftKings in a report issued on Monday, November 11th. Northland Capmk analyst G. Gibas now forecasts that the company will post earnings of ($0.79) per share for the year, down from their prior estimate of ($0.41). The consensus estimate for DraftKings’ current full-year earnings is ($0.73) per share. Northland Capmk also issued estimates for DraftKings’ Q4 2024 earnings at ($0.03) EPS, Q1 2025 earnings at ($0.09) EPS, Q3 2025 earnings at ($0.27) EPS and FY2025 earnings at $0.18 EPS.

Other equities research analysts have also recently issued research reports about the company. Bank of America dropped their target price on DraftKings from $54.00 to $50.00 and set a “buy” rating on the stock in a report on Monday, July 22nd. Wells Fargo & Company boosted their target price on DraftKings from $47.00 to $52.00 and gave the stock an “overweight” rating in a report on Thursday, October 17th. UBS Group lifted their price target on shares of DraftKings from $56.00 to $58.00 and gave the stock a “buy” rating in a research report on Wednesday, September 4th. Stifel Nicolaus restated a “buy” rating and issued a $48.00 price target (down previously from $50.00) on shares of DraftKings in a research report on Monday, August 5th. Finally, BNP Paribas upgraded shares of DraftKings from an “underperform” rating to a “neutral” rating and set a $35.00 price target on the stock in a research report on Tuesday, September 10th. Three research analysts have rated the stock with a hold rating and twenty-four have given a buy rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $50.85.

DraftKings Price Performance

Shares of NASDAQ:DKNG opened at $39.84 on Thursday. DraftKings has a 12 month low of $28.69 and a 12 month high of $49.57. The stock has a market cap of $35.00 billion, a price-to-earnings ratio of -45.27 and a beta of 1.82. The stock’s 50 day moving average price is $38.35 and its 200 day moving average price is $37.94. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.00 and a quick ratio of 1.11.

DraftKings (NASDAQ:DKNG) last announced its earnings results on Thursday, November 7th. The company reported ($0.60) EPS for the quarter, missing the consensus estimate of ($0.42) by ($0.18). DraftKings had a negative return on equity of 41.23% and a negative net margin of 9.06%. The firm had revenue of $1.10 billion for the quarter, compared to the consensus estimate of $1.12 billion.

Institutional Trading of DraftKings

A number of institutional investors and hedge funds have recently added to or reduced their stakes in DKNG. Marshall Wace LLP increased its stake in DraftKings by 53.3% in the second quarter. Marshall Wace LLP now owns 9,410,431 shares of the company’s stock valued at $359,196,000 after acquiring an additional 3,269,932 shares during the period. Jupiter Asset Management Ltd. grew its stake in DraftKings by 1,261.7% during the second quarter. Jupiter Asset Management Ltd. now owns 1,612,405 shares of the company’s stock worth $61,545,000 after buying an additional 1,493,995 shares during the last quarter. Fred Alger Management LLC grew its stake in DraftKings by 46.6% during the third quarter. Fred Alger Management LLC now owns 4,643,852 shares of the company’s stock worth $182,039,000 after buying an additional 1,476,003 shares during the last quarter. Blue Whale Capital LLP bought a new stake in DraftKings during the second quarter worth about $39,306,000. Finally, Kodai Capital Management LP bought a new stake in DraftKings during the first quarter worth about $41,276,000. Institutional investors own 37.70% of the company’s stock.

Insider Activity at DraftKings

In other DraftKings news, insider Paul Liberman sold 643,654 shares of the business’s stock in a transaction on Wednesday, September 25th. The shares were sold at an average price of $41.24, for a total transaction of $26,544,290.96. Following the completion of the transaction, the insider now owns 137,308 shares of the company’s stock, valued at $5,662,581.92. The trade was a 82.42 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Jason Robins sold 200,000 shares of the company’s stock in a transaction dated Wednesday, August 21st. The shares were sold at an average price of $35.25, for a total transaction of $7,050,000.00. Following the transaction, the insider now directly owns 2,678,082 shares of the company’s stock, valued at $94,402,390.50. This represents a 6.95 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 1,020,536 shares of company stock valued at $39,966,465. Insiders own 51.19% of the company’s stock.

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.