DraftKings Inc. (NASDAQ:DKNG) Receives Consensus Recommendation of “Moderate Buy” from Analysts

DraftKings Inc. (NASDAQ:DKNG) has been assigned an average recommendation of “Moderate Buy” from the twenty-nine brokerages that are currently covering the company, MarketBeat.com reports. Two equities research analysts have rated the stock with a sell recommendation, two have given a hold recommendation and twenty-five have assigned a buy recommendation to the company. The average 1-year price objective among analysts that have updated their coverage on the stock in the last year is $49.24.

DKNG has been the topic of several analyst reports. BMO Capital Markets lifted their target price on DraftKings from $51.00 to $54.00 and gave the company an “outperform” rating in a research note on Monday, May 6th. Deutsche Bank Aktiengesellschaft lifted their price target on DraftKings from $34.00 to $35.00 and gave the company a “hold” rating in a research note on Monday, May 6th. Stifel Nicolaus decreased their price target on DraftKings from $51.00 to $50.00 and set a “buy” rating on the stock in a research note on Wednesday, May 29th. Wells Fargo & Company decreased their price target on DraftKings from $54.00 to $53.00 and set an “overweight” rating on the stock in a research note on Tuesday. Finally, Guggenheim decreased their price target on DraftKings from $53.00 to $52.00 and set a “buy” rating on the stock in a research note on Wednesday.

Insider Activity

In other news, Director Jocelyn Moore sold 1,450 shares of the company’s stock in a transaction 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 completion of the transaction, the director now directly owns 6,814 shares in the company, valued at $244,758.88. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In other DraftKings news, Director Jocelyn Moore sold 1,450 shares of the stock in a transaction on Wednesday, June 5th. The shares were sold at an average price of $35.92, for a total transaction of $52,084.00. Following the transaction, the director now directly owns 6,814 shares in the company, valued at approximately $244,758.88. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Jason Robins sold 200,000 shares of the stock in a transaction on Wednesday, May 8th. The shares were sold at an average price of $42.67, for a total transaction of $8,534,000.00. Following the transaction, the insider now owns 2,849,215 shares in the company, valued at $121,576,004.05. The disclosure for this sale can be found here. Over the last three months, insiders sold 1,520,340 shares of company stock worth $60,996,583. 51.19% of the stock is currently owned by company insiders.

Institutional Trading of DraftKings

Large investors have recently modified their holdings of the company. Vanguard Group Inc. increased its stake in DraftKings by 1.9% during the 1st quarter. Vanguard Group Inc. now owns 40,011,855 shares of the company’s stock valued at $1,816,938,000 after buying an additional 747,937 shares during the period. Jericho Capital Asset Management L.P. boosted its position in shares of DraftKings by 39.4% during the 3rd quarter. Jericho Capital Asset Management L.P. now owns 7,153,967 shares of the company’s stock valued at $210,613,000 after purchasing an additional 2,022,000 shares in the last quarter. Norges Bank bought a new position in shares of DraftKings during the 4th quarter valued at about $192,140,000. Ameriprise Financial Inc. boosted its position in shares of DraftKings by 345.7% during the 3rd quarter. Ameriprise Financial Inc. now owns 4,440,494 shares of the company’s stock valued at $130,742,000 after purchasing an additional 3,444,107 shares in the last quarter. Finally, Massachusetts Financial Services Co. MA boosted its position in shares of DraftKings by 21.4% during the 4th quarter. Massachusetts Financial Services Co. MA now owns 4,424,931 shares of the company’s stock valued at $155,979,000 after purchasing an additional 781,058 shares in the last quarter. Institutional investors and hedge funds own 37.70% of the company’s stock.

DraftKings Price Performance

Shares of NASDAQ DKNG opened at $38.17 on Friday. The company has a debt-to-equity ratio of 1.51, a quick ratio of 1.34 and a current ratio of 1.34. DraftKings has a fifty-two week low of $24.97 and a fifty-two week high of $49.57. The firm has a market capitalization of $33.18 billion, a PE ratio of -32.35 and a beta of 1.81. The stock’s 50-day simple moving average is $40.72 and its 200-day simple moving average is $40.54.

DraftKings (NASDAQ:DKNG) last released its quarterly earnings results on Thursday, May 2nd. The company reported ($0.30) EPS for the quarter, missing the consensus estimate of ($0.28) by ($0.02). The firm had revenue of $1.18 billion for the quarter, compared to analyst estimates of $1.12 billion. DraftKings had a negative return on equity of 62.74% and a negative net margin of 13.45%. The company’s quarterly revenue was up 52.7% on a year-over-year basis. During the same period last year, the firm earned ($0.87) EPS. As a group, equities research analysts forecast that DraftKings will post -0.22 EPS for the current fiscal year.

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.