Short Interest in DraftKings Inc. (NASDAQ:DKNG) Grows By 9.6%

DraftKings Inc. (NASDAQ:DKNG) was the recipient of a large increase in short interest during the month of August. As of August 15th, there was short interest totalling 21,660,000 shares, an increase of 9.6% from the July 31st total of 19,760,000 shares. Based on an average daily volume of 10,420,000 shares, the days-to-cover ratio is presently 2.1 days.

Analyst Upgrades and Downgrades

Several research firms have commented on DKNG. UBS Group raised their target price on shares of DraftKings from $56.00 to $60.00 and gave the company a “buy” rating in a research note on Wednesday, May 15th. Berenberg Bank raised DraftKings to a “hold” rating in a report on Friday, May 31st. Susquehanna cut their price target on shares of DraftKings from $49.00 to $47.00 and set a “positive” rating for the company in a report on Thursday, August 1st. Needham & Company LLC reaffirmed a “buy” rating and issued a $60.00 price objective on shares of DraftKings in a research note on Tuesday. Finally, Bank of America cut their target price on shares of DraftKings from $54.00 to $50.00 and set a “buy” rating for the company in a research note on Monday, July 22nd. One investment analyst has rated the stock with a sell rating, two have given a hold rating and twenty-four have issued a buy rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $49.56.

DraftKings Stock Down 2.5 %

Shares of DraftKings stock traded down $0.85 during trading on Tuesday, hitting $33.65. 7,665,233 shares of the stock traded hands, compared to its average volume of 10,765,119. The company has a fifty day moving average price of $35.48 and a two-hundred day moving average price of $39.94. DraftKings has a twelve month low of $25.73 and a twelve month high of $49.57. The stock has a market cap of $29.56 billion, a P/E ratio of -28.52 and a beta of 1.81. The company has a debt-to-equity ratio of 0.97, a quick ratio of 1.11 and a current ratio of 1.11.

DraftKings (NASDAQ:DKNG) last posted its earnings results on Thursday, August 1st. The company reported $0.12 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.01) by $0.13. The firm had revenue of $1.10 billion during the quarter, compared to analysts’ expectations of $1.11 billion. DraftKings had a negative net margin of 9.45% and a negative return on equity of 43.11%. The company’s revenue was up 26.2% compared to the same quarter last year. During the same period in the previous year, the company earned ($0.17) earnings per share. Equities research analysts predict that DraftKings will post -0.31 EPS for the current fiscal year.

Insider Activity at DraftKings

In other DraftKings news, Director Jocelyn Moore sold 1,450 shares of the firm’s stock in a transaction that occurred on Wednesday, June 5th. The shares were sold at an average price of $35.92, for a total value of $52,084.00. Following the sale, the director now owns 6,814 shares in the company, valued at $244,758.88. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. In related news, Director Jocelyn Moore sold 1,450 shares of the stock in a transaction that occurred on Wednesday, June 5th. The stock was sold at an average price of $35.92, for a total value of $52,084.00. Following the completion of the transaction, the director now directly owns 6,814 shares of the company’s stock, valued at approximately $244,758.88. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Harry Sloan sold 250,000 shares of DraftKings stock in a transaction on Friday, June 14th. The shares were sold at an average price of $38.15, for a total value of $9,537,500.00. Following the sale, the director now directly owns 250,000 shares in the company, valued at approximately $9,537,500. The disclosure for this sale can be found here. Insiders have sold a total of 1,471,987 shares of company stock worth $54,373,654 in the last ninety days. 51.19% of the stock is owned by insiders.

Institutional Investors Weigh In On DraftKings

Several institutional investors and hedge funds have recently modified their holdings of the business. Norges Bank acquired a new stake in shares of DraftKings in the fourth quarter worth about $192,140,000. Marshall Wace LLP grew its holdings in DraftKings by 53.3% during the second quarter. Marshall Wace LLP now owns 9,410,431 shares of the company’s stock valued at $359,196,000 after purchasing an additional 3,269,932 shares during the last quarter. First Trust Advisors LP raised its position in shares of DraftKings by 148.2% in the fourth quarter. First Trust Advisors LP now owns 4,235,008 shares of the company’s stock valued at $149,284,000 after purchasing an additional 2,528,503 shares during the period. Eagle Asset Management Inc. acquired a new stake in shares of DraftKings in the fourth quarter worth $87,829,000. Finally, Vanguard Group Inc. boosted its holdings in shares of DraftKings by 6.0% during the 4th quarter. Vanguard Group Inc. now owns 39,263,918 shares of the company’s stock worth $1,384,053,000 after buying an additional 2,225,759 shares during the period. Institutional investors and hedge funds own 37.70% 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.