DraftKings (NASDAQ:DKNG) Trading Up 2.8% – Here’s What Happened

DraftKings Inc. (NASDAQ:DKNG)’s share price shot up 2.8% on Wednesday . The company traded as high as $38.75 and last traded at $38.40. 1,632,003 shares traded hands during trading, a decline of 76% from the average session volume of 6,695,284 shares. The stock had previously closed at $37.36.

Analyst Ratings Changes

DKNG has been the topic of a number of research analyst reports. Susquehanna cut their price target on DraftKings from $56.00 to $54.00 and set a “positive” rating on the stock in a report on Wednesday. Morgan Stanley increased their price target on DraftKings from $47.00 to $48.00 and gave the stock an “overweight” rating in a report on Tuesday, October 22nd. Benchmark reiterated a “buy” rating and issued a $44.00 target price on shares of DraftKings in a report on Tuesday. BMO Capital Markets reaffirmed an “outperform” rating and issued a $48.00 price objective on shares of DraftKings in a research note on Wednesday, October 16th. Finally, Wells Fargo & Company raised their price target on shares of DraftKings from $47.00 to $52.00 and gave the company an “overweight” rating in a research report on Thursday, October 17th. Three analysts have rated the stock with a hold rating and twenty-three have given a buy rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $51.08.

DraftKings Trading Up 3.0 %

The company has a debt-to-equity ratio of 1.17, a quick ratio of 1.00 and a current ratio of 1.00. The firm has a market cap of $34.78 billion, a P/E ratio of -44.87 and a beta of 1.90. The firm has a 50 day simple moving average of $40.41 and a 200 day simple moving average of $37.90.

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

Insider Buying and Selling at DraftKings

In other DraftKings news, insider R Stanton Dodge sold 228,496 shares of the business’s stock in a transaction on Monday, December 9th. The shares were sold at an average price of $42.74, for a total value of $9,765,919.04. Following the completion of the sale, 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 transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Jason Robins sold 3,151 shares of the stock in a transaction that occurred on Thursday, November 21st. The shares were sold at an average price of $43.71, for a total value of $137,730.21. Following the sale, the insider now directly owns 2,631,033 shares of the company’s stock, valued at approximately $115,002,452.43. This trade represents a 0.12 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 852,183 shares of company stock valued at $33,503,025 in the last 90 days. Corporate insiders own 51.19% of the company’s stock.

Institutional Investors Weigh In On DraftKings

Several hedge funds have recently made changes to their positions in DKNG. Marshall Wace LLP grew its position in shares of DraftKings by 53.3% in the 2nd quarter. Marshall Wace LLP now owns 9,410,431 shares of the company’s stock worth $359,196,000 after buying an additional 3,269,932 shares during the period. Geode Capital Management LLC lifted its holdings in shares of DraftKings by 3.7% during the third quarter. Geode Capital Management LLC now owns 7,985,021 shares of the company’s stock valued at $312,361,000 after purchasing an additional 284,131 shares during the last quarter. FMR LLC grew its stake in shares of DraftKings by 14.7% in the 3rd quarter. FMR LLC now owns 6,467,066 shares of the company’s stock worth $253,509,000 after buying an additional 826,626 shares during the last quarter. Massachusetts Financial Services Co. MA grew its stake in shares of DraftKings by 8.3% in the 2nd quarter. Massachusetts Financial Services Co. MA now owns 5,777,271 shares of the company’s stock worth $220,518,000 after buying an additional 441,975 shares during the last quarter. Finally, Fred Alger Management LLC grew its position in DraftKings by 46.6% during the 3rd quarter. Fred Alger Management LLC now owns 4,643,852 shares of the company’s stock valued at $182,039,000 after purchasing an additional 1,476,003 shares during the last quarter. 37.70% of the stock is currently owned by institutional investors.

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.