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

DraftKings Inc. (NASDAQ:DKNG) has earned a consensus rating of “Moderate Buy” from the twenty-seven analysts that are presently covering the company, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and twenty-four have issued a buy rating on the company. The average twelve-month price objective among analysts that have issued ratings on the stock in the last year is $49.56.

A number of equities analysts recently commented on the stock. Wells Fargo & Company lowered their target price on shares of DraftKings from $53.00 to $47.00 and set an “overweight” rating for the company in a research note on Monday, August 5th. The Goldman Sachs Group dropped their price objective on DraftKings from $60.00 to $54.00 and set a “buy” rating on the stock in a report on Monday, August 5th. Guggenheim decreased their target price on DraftKings from $53.00 to $52.00 and set a “buy” rating for the company in a research note on Wednesday, June 26th. Bank of America dropped their price target on shares of DraftKings from $54.00 to $50.00 and set a “buy” rating on the stock in a research note on Monday, July 22nd. Finally, Stifel Nicolaus restated a “buy” rating and set a $48.00 price objective (down previously from $50.00) on shares of DraftKings in a research report on Monday, August 5th.

DraftKings Price Performance

DKNG stock opened at $35.25 on Friday. The business’s 50-day moving average is $36.45 and its two-hundred day moving average is $40.38. The company has a debt-to-equity ratio of 1.51, a current ratio of 1.34 and a quick ratio of 1.34. The firm has a market capitalization of $30.64 billion, a P/E ratio of -29.87 and a beta of 1.81. DraftKings has a 1 year low of $25.73 and a 1 year high of $49.57.

DraftKings (NASDAQ:DKNG) last issued its earnings results on Thursday, August 1st. The company reported $0.12 earnings per share for the quarter, beating the consensus estimate of ($0.01) by $0.13. DraftKings had a negative net margin of 9.45% and a negative return on equity of 49.31%. The firm had revenue of $1.10 billion for the quarter, compared to analysts’ expectations of $1.11 billion. During the same quarter last year, the company earned ($0.17) earnings per share. The firm’s revenue was up 26.2% compared to the same quarter last year. Analysts anticipate that DraftKings will post -0.31 earnings per share for the current fiscal year.

Insider Buying and Selling

In other DraftKings news, insider Jason Robins sold 200,000 shares of DraftKings stock in a transaction that occurred on Thursday, August 8th. The stock was sold at an average price of $30.72, for a total value of $6,144,000.00. Following the sale, the insider now owns 2,699,815 shares of the company’s stock, valued at approximately $82,938,316.80. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. In other DraftKings news, insider Jason Robins sold 200,000 shares of the firm’s stock in a transaction on Thursday, August 8th. The stock was sold at an average price of $30.72, for a total value of $6,144,000.00. Following the completion of the sale, the insider now owns 2,699,815 shares of the company’s stock, valued at $82,938,316.80. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Jocelyn Moore sold 1,450 shares of the company’s stock in a transaction dated Wednesday, June 5th. The stock was sold at an average price of $35.92, for a total transaction of $52,084.00. Following the transaction, the director now owns 6,814 shares in the company, valued at $244,758.88. The disclosure for this sale can be found here. Insiders sold 1,183,546 shares of company stock valued at $44,171,617 over the last ninety days. Corporate insiders own 51.19% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of DKNG. Vanguard Group Inc. increased its position in DraftKings by 1.9% during the first quarter. Vanguard Group Inc. now owns 40,011,855 shares of the company’s stock worth $1,816,938,000 after buying an additional 747,937 shares in the last quarter. Marshall Wace LLP increased its position in DraftKings by 53.3% during the 2nd quarter. Marshall Wace LLP now owns 9,410,431 shares of the company’s stock worth $359,196,000 after purchasing an additional 3,269,932 shares in the last quarter. Massachusetts Financial Services Co. MA raised its stake in DraftKings by 8.3% in the 2nd quarter. Massachusetts Financial Services Co. MA now owns 5,777,271 shares of the company’s stock valued at $220,518,000 after purchasing an additional 441,975 shares during the last quarter. Norges Bank purchased a new position in DraftKings in the 4th quarter valued at about $192,140,000. Finally, First Trust Advisors LP boosted its stake in shares of DraftKings by 148.2% during the 4th quarter. First Trust Advisors LP now owns 4,235,008 shares of the company’s stock worth $149,284,000 after purchasing an additional 2,528,503 shares during the last quarter. 37.70% of the stock is currently owned by institutional investors and hedge funds.

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.