Benchmark Forecasts Strong Price Appreciation for DraftKings (NASDAQ:DKNG) Stock

DraftKings (NASDAQ:DKNG) had its price target lifted by equities researchers at Benchmark from $44.00 to $51.00 in a research report issued on Friday,Benzinga reports. The brokerage currently has a “buy” rating on the stock. Benchmark’s price target points to a potential downside of 4.66% from the company’s current price.

A number of other research analysts also recently commented on DKNG. Canaccord Genuity Group increased their price objective on shares of DraftKings from $54.00 to $60.00 and gave the company a “buy” rating in a research note on Friday. Mizuho increased their price objective on shares of DraftKings from $54.00 to $62.00 and gave the stock an “outperform” rating in a report on Friday, October 18th. Macquarie raised their target price on shares of DraftKings from $50.00 to $51.00 and gave the company an “outperform” rating in a research note on Monday, November 11th. Morgan Stanley raised their target price on shares of DraftKings from $47.00 to $48.00 and gave the company an “overweight” rating in a research note on Tuesday, October 22nd. Finally, Wells Fargo & Company raised their price objective 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 issued a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $51.64.

DraftKings Stock Performance

Shares of DKNG opened at $53.49 on Friday. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 1.17. The stock has a market cap of $26.08 billion, a P/E ratio of -60.78, a PEG ratio of 3.18 and a beta of 1.93. The company has a 50-day moving average of $40.54 and a two-hundred day moving average of $38.73. DraftKings has a 12-month low of $28.69 and a 12-month high of $53.61.

DraftKings (NASDAQ:DKNG) last issued its quarterly earnings results on Thursday, February 13th. The company reported ($0.28) EPS for the quarter, missing the consensus estimate of $0.07 by ($0.35). DraftKings had a negative return on equity of 41.23% and a negative net margin of 9.06%. As a group, research analysts predict that DraftKings will post -0.95 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Paul Liberman sold 532,095 shares of DraftKings stock in a transaction dated Thursday, December 26th. The stock was sold at an average price of $38.30, for a total transaction of $20,379,238.50. Following the completion of the sale, the insider now owns 68,654 shares of the company’s stock, valued at $2,629,448.20. The trade was a 88.57 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Jason Robins sold 200,000 shares of DraftKings stock in a transaction that occurred on Wednesday, February 12th. The shares were sold at an average price of $45.00, for a total value of $9,000,000.00. Following the transaction, the insider now owns 2,678,613 shares of the company’s stock, valued at approximately $120,537,585. This represents a 6.95 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 1,163,742 shares of company stock worth $47,082,888 over the last quarter. Company insiders own 51.19% of the company’s stock.

Hedge Funds Weigh In On DraftKings

A number of institutional investors and hedge funds have recently added to or reduced their stakes in DKNG. Stonebridge Financial Group LLC acquired a new position in shares of DraftKings in the 4th quarter valued at $28,000. Synergy Asset Management LLC acquired a new position in DraftKings during the 4th quarter worth about $30,000. Synergy Investment Management LLC acquired a new position in DraftKings during the 4th quarter worth about $37,000. Delos Wealth Advisors LLC acquired a new position in DraftKings during the 3rd quarter worth about $43,000. Finally, Westpac Banking Corp purchased a new stake in DraftKings during the 4th quarter worth about $44,000. Institutional investors and hedge funds own 37.70% of the company’s stock.

DraftKings Company Profile

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.