DraftKings’ (DKNG) Under Perform Rating Reiterated at Northland Securities

Northland Securities reissued their under perform rating on shares of DraftKings (NASDAQ:DKNG) in a report released on Wednesday, Marketbeat reports. They currently have a $33.00 price target on the stock, down from their prior price target of $53.00.

A number of other equities analysts have also recently weighed in on DKNG. Citigroup reaffirmed a “buy” rating on shares of DraftKings in a research note on Friday, July 11th. Jefferies Financial Group set a $54.00 price target on shares of DraftKings in a research note on Thursday, August 21st. Stifel Nicolaus lowered their price target on shares of DraftKings from $53.00 to $51.00 and set a “buy” rating on the stock in a research note on Wednesday, July 16th. Benchmark upped their price target on shares of DraftKings from $50.00 to $53.00 and gave the stock a “buy” rating in a research note on Thursday, August 7th. Finally, JMP Securities lowered their price target on shares of DraftKings from $54.00 to $51.00 and set a “market outperform” rating on the stock in a research note on Wednesday. Twenty-six research analysts have rated the stock with a Buy rating, one has given a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $53.89.

DraftKings Stock Performance

Shares of DKNG opened at $35.37 on Wednesday. The company has a debt-to-equity ratio of 1.82, a quick ratio of 1.34 and a current ratio of 1.34. The stock has a market capitalization of $17.56 billion, a P/E ratio of -54.42, a P/E/G ratio of 0.91 and a beta of 1.99. The company’s fifty day moving average is $44.25 and its two-hundred day moving average is $39.79. DraftKings has a 1 year low of $29.64 and a 1 year high of $53.61.

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

Insider Transactions at DraftKings

In related news, insider R Stanton Dodge sold 105,554 shares of the stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $47.37, for a total value of $5,000,092.98. Following the sale, the insider directly owned 512,181 shares of the company’s stock, valued at approximately $24,262,013.97. This represents a 17.09% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Alan Wayne Ellingson sold 44,693 shares of the firm’s stock in a transaction dated Tuesday, August 19th. The stock was sold at an average price of $44.90, for a total transaction of $2,006,715.70. Following the sale, the chief financial officer directly owned 128,131 shares in the company, valued at $5,753,081.90. This represents a 25.86% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 658,331 shares of company stock worth $29,285,365 in the last 90 days. Insiders own 51.19% of the company’s stock.

Institutional Investors Weigh In On DraftKings

Hedge funds have recently modified their holdings of the company. FNY Investment Advisers LLC acquired a new stake in shares of DraftKings during the 1st quarter worth about $26,000. Smallwood Wealth Investment Management LLC acquired a new stake in shares of DraftKings during the 1st quarter worth about $27,000. GPS Wealth Strategies Group LLC boosted its stake in shares of DraftKings by 197.9% during the 1st quarter. GPS Wealth Strategies Group LLC now owns 849 shares of the company’s stock worth $28,000 after purchasing an additional 564 shares during the last quarter. Bank of Jackson Hole Trust acquired a new stake in shares of DraftKings during the 1st quarter worth about $31,000. Finally, MassMutual Private Wealth & Trust FSB boosted its stake in shares of DraftKings by 44.8% during the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 1,024 shares of the company’s stock worth $34,000 after purchasing an additional 317 shares during the last quarter. 37.70% of the stock is 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.