DraftKings Inc. (NASDAQ:DKNG) Sees Large Decline in Short Interest

DraftKings Inc. (NASDAQ:DKNG) was the target of a large decrease in short interest in the month of November. As of November 30th, there was short interest totalling 19,630,000 shares, a decrease of 13.0% from the November 15th total of 22,560,000 shares. Based on an average daily volume of 8,800,000 shares, the days-to-cover ratio is presently 2.2 days.

Wall Street Analyst Weigh In

DKNG has been the topic of a number of research analyst reports. Susquehanna lifted their price target on shares of DraftKings from $48.00 to $50.00 and gave the company a “positive” rating in a research note on Monday, October 7th. Needham & Company LLC reissued a “buy” rating and set a $60.00 price objective on shares of DraftKings in a research report on Friday, November 8th. UBS Group upped their price target on DraftKings from $56.00 to $58.00 and gave the company a “buy” rating in a report on Wednesday, September 4th. BNP Paribas raised DraftKings from an “underperform” rating to a “neutral” rating and set a $35.00 price target for the company in a report on Tuesday, September 10th. Finally, TD Cowen raised their price target on DraftKings from $50.00 to $55.00 and gave the company a “buy” rating in a research report on Tuesday, November 12th. Three investment analysts have rated the stock with a hold rating and twenty-three have given a buy rating to the stock. Based on data from MarketBeat.com, DraftKings currently has a consensus rating of “Moderate Buy” and an average target price of $51.00.

DraftKings Trading Up 3.8 %

NASDAQ:DKNG traded up $1.48 on Tuesday, reaching $40.72. 11,013,090 shares of the stock traded hands, compared to its average volume of 10,137,519. The firm has a market capitalization of $35.86 billion, a price-to-earnings ratio of -46.14 and a beta of 1.87. The company’s 50 day moving average is $40.10 and its 200-day moving average is $37.99. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 1.17. DraftKings has a 1-year low of $28.69 and a 1-year high of $49.57.

DraftKings (NASDAQ:DKNG) last released its earnings results on Thursday, November 7th. The company reported ($0.60) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.42) by ($0.18). The firm had revenue of $1.10 billion for the quarter, compared to analyst estimates of $1.12 billion. DraftKings had a negative net margin of 9.06% and a negative return on equity of 41.23%. Equities research analysts anticipate that DraftKings will post -0.79 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Paul Liberman sold 88,441 shares of the stock in a transaction that occurred on Friday, October 25th. The shares were sold at an average price of $36.41, for a total value of $3,220,136.81. Following the completion of the transaction, the insider now directly owns 1,923,483 shares of the company’s stock, valued at $70,034,016.03. This trade represents a 4.40 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider R Stanton Dodge sold 228,496 shares of the stock in a transaction that occurred on Monday, December 9th. The shares were sold at an average price of $42.74, for a total transaction of $9,765,919.04. Following the completion of the transaction, the insider now directly owns 541,884 shares of the company’s stock, valued at $23,160,122.16. The trade was a 29.66 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 963,742 shares of company stock worth $39,668,077 in the last three months. 48.94% of the stock is owned by company insiders.

Institutional Trading of DraftKings

Several hedge funds have recently modified their holdings of the stock. Oddo BHF Asset Management Sas bought a new stake in shares of DraftKings in the 3rd quarter valued at $1,191,000. Wilmington Savings Fund Society FSB bought a new stake in shares of DraftKings in the 3rd quarter valued at $304,000. Pine Valley Investments Ltd Liability Co increased its stake in shares of DraftKings by 3.7% in the 3rd quarter. Pine Valley Investments Ltd Liability Co now owns 6,924 shares of the company’s stock valued at $271,000 after acquiring an additional 249 shares in the last quarter. Anchor Investment Management LLC grew its position in DraftKings by 11.9% in the 3rd quarter. Anchor Investment Management LLC now owns 9,422 shares of the company’s stock valued at $369,000 after purchasing an additional 1,000 shares during the period. Finally, Westside Investment Management Inc. grew its position in DraftKings by 26.5% in the 3rd quarter. Westside Investment Management Inc. now owns 44,830 shares of the company’s stock valued at $1,757,000 after purchasing an additional 9,385 shares during the period. Institutional investors 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.