Stock Traders Purchase High Volume of DraftKings Call Options (NASDAQ:DKNG)

DraftKings Inc. (NASDAQ:DKNG) was the recipient of unusually large options trading activity on Tuesday. Traders purchased 85,472 call options on the stock. This is an increase of 37% compared to the typical volume of 62,374 call options.

DraftKings Stock Down 5.5%

DKNG stock opened at $31.16 on Wednesday. The company’s 50 day simple moving average is $40.69 and its 200-day simple moving average is $39.67. The firm has a market capitalization of $15.47 billion, a PE ratio of -47.94, a P/E/G ratio of 1.03 and a beta of 1.99. DraftKings has a 12 month low of $29.64 and a 12 month high of $53.61. The company has a debt-to-equity ratio of 1.82, a current ratio of 1.34 and a quick ratio of 1.34.

DraftKings (NASDAQ:DKNG) last released its quarterly earnings results on Thursday, August 7th. The company reported $0.30 EPS for the quarter, beating the consensus estimate of $0.16 by $0.14. The business had revenue of $1.51 billion for the quarter, compared to analyst estimates of $1.39 billion. DraftKings had a negative net margin of 5.63% and a negative return on equity of 30.06%. The company’s quarterly revenue was up 36.9% on a year-over-year basis. During the same period in the prior year, the business earned $0.12 earnings per share. DraftKings has set its FY 2025 guidance at EPS. Equities analysts expect that DraftKings will post 0.64 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Matthew Kalish sold 210,000 shares of the stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $42.90, for a total transaction of $9,009,000.00. Following the completion of the transaction, the insider directly owned 4,190,233 shares of the company’s stock, valued at $179,760,995.70. This represents a 4.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, Director Jocelyn Moore sold 4,861 shares of the stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $43.21, for a total transaction of $210,043.81. Following the transaction, the director directly owned 1,461 shares of the company’s stock, valued at $63,129.81. This represents a 76.89% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 605,554 shares of company stock valued at $26,515,100 over the last ninety days. 47.08% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On DraftKings

Institutional investors and hedge funds have recently modified their holdings of the company. Smallwood Wealth Investment Management LLC purchased a new position in shares of DraftKings during the first quarter valued at approximately $27,000. Bank of Jackson Hole Trust purchased a new position in shares of DraftKings during the first quarter valued at approximately $31,000. TD Private Client Wealth LLC lifted its stake in shares of DraftKings by 54.4% during the second quarter. TD Private Client Wealth LLC now owns 800 shares of the company’s stock valued at $34,000 after buying an additional 282 shares during the period. Summit Securities Group LLC lifted its stake in shares of DraftKings by 349.1% during the first quarter. Summit Securities Group LLC now owns 1,042 shares of the company’s stock valued at $35,000 after buying an additional 810 shares during the period. Finally, Atlantic Union Bankshares Corp purchased a new position in shares of DraftKings during the second quarter valued at approximately $45,000. Hedge funds and other institutional investors own 37.70% of the company’s stock.

Analysts Set New Price Targets

Several research analysts have weighed in on the stock. Wall Street Zen lowered shares of DraftKings from a “buy” rating to a “hold” rating in a research report on Friday, October 3rd. Barclays restated an “overweight” rating and set a $54.00 target price (up from $51.00) on shares of DraftKings in a research report on Friday, August 8th. Mizuho lowered their target price on shares of DraftKings from $58.00 to $54.00 and set an “outperform” rating on the stock in a research report on Tuesday, October 7th. Deutsche Bank Aktiengesellschaft set a $47.00 target price on shares of DraftKings and gave the stock a “hold” rating in a research report on Friday, August 8th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of DraftKings in a research report on Wednesday, October 8th. Twenty-seven investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $52.79.

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.