DraftKings (NASDAQ:DKNG) Stock Rating Cut to Strong Sell at Zacks Research

Zacks Research downgraded shares of DraftKings (NASDAQ:DKNG) from a hold rating to a strong sell rating in a research report sent to investors on Tuesday morning,Zacks reports.

DKNG has been the subject of several other research reports. Wolfe Research assumed coverage on shares of DraftKings in a research note on Wednesday, September 2nd. They issued an “outperform” rating and a $40.00 target price for the company. Benchmark increased their target price on shares of DraftKings from $29.00 to $30.00 and gave the stock a “buy” rating in a report on Friday, August 7th. Susquehanna reduced their price target on shares of DraftKings from $33.00 to $27.00 and set a “positive” rating on the stock in a research report on Thursday, October 8th. UBS Group decreased their price target on shares of DraftKings from $49.00 to $48.00 and set a “buy” rating for the company in a report on Friday, September 18th. Finally, Stifel Nicolaus decreased their price target on shares of DraftKings from $40.00 to $38.00 and set a “buy” rating for the company in a report on Wednesday, July 22nd. One investment analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating, six have issued a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $33.70.

DraftKings Price Performance

DraftKings stock opened at $18.90 on Tuesday. The firm has a market capitalization of $9.38 billion, a P/E ratio of -49.74, a PEG ratio of 1.99 and a beta of 1.61. DraftKings has a 1 year low of $18.50 and a 1 year high of $36.98. The business has a 50-day moving average of $22.90 and a 200-day moving average of $24.01. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 3.22.

DraftKings (NASDAQ:DKNG) last announced its quarterly earnings results on Friday, August 7th. The company reported $0.09 earnings per share for the quarter, beating analysts’ consensus estimates of $0.02 by $0.07. DraftKings had a negative net margin of 2.68% and a negative return on equity of 11.26%. The business had revenue of $1.44 billion for the quarter, compared to the consensus estimate of $1.51 billion. During the same period last year, the company posted $0.30 EPS. DraftKings’s revenue for the quarter was down 4.6% on a year-over-year basis. On average, equities analysts anticipate that DraftKings will post 0.40 EPS for the current year.

Insiders Place Their Bets

In other DraftKings news, Director Jocelyn Moore sold 10,759 shares of the company’s stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $24.05, for a total transaction of $258,753.95. Following the completion of the transaction, the director owned 1,881 shares of the company’s stock, valued at $45,238.05. This represents a 85.12% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 47.18% of the stock is currently owned by company insiders.

Institutional Trading of DraftKings

Institutional investors have recently made changes to their positions in the business. Janus Henderson Group PLC raised its stake in shares of DraftKings by 9.3% during the 1st quarter. Janus Henderson Group PLC now owns 27,665,699 shares of the company’s stock worth $588,288,000 after purchasing an additional 2,351,790 shares in the last quarter. Spruce House Investment Management LLC increased its stake in shares of DraftKings by 129.6% during the 1st quarter. Spruce House Investment Management LLC now owns 9,650,000 shares of the company’s stock worth $208,633,000 after purchasing an additional 5,446,166 shares during the last quarter. Eminence Capital LP increased its stake in shares of DraftKings by 34.3% during the 4th quarter. Eminence Capital LP now owns 8,426,755 shares of the company’s stock worth $290,386,000 after purchasing an additional 2,151,892 shares during the last quarter. Bamco Inc. NY increased its stake in shares of DraftKings by 13.8% during the 4th quarter. Bamco Inc. NY now owns 4,674,455 shares of the company’s stock worth $161,082,000 after purchasing an additional 568,487 shares during the last quarter. Finally, Swiss National Bank raised its holdings in shares of DraftKings by 7.4% in the 1st quarter. Swiss National Bank now owns 1,314,864 shares of the company’s stock valued at $28,427,000 after purchasing an additional 90,400 shares during the period. Institutional investors own 37.70% of the company’s stock.

DraftKings Company Profile

DraftKings Inc is a digital sports entertainment and gaming company that provides online sports betting, daily fantasy sports and internet-based casino gaming. Its products are delivered through mobile applications and websites, allowing customers to wager on professional and collegiate sports, participate in fantasy contests and play a range of casino games where permitted by law.

The company also offers sports and betting-related content through DraftKings Network and operates additional gaming and entertainment products, including online lottery services in select markets.