JMP Securities Issues Pessimistic Forecast for DraftKings (NASDAQ:DKNG) Stock Price

DraftKings (NASDAQ:DKNG) had its target price decreased by stock analysts at JMP Securities from $52.00 to $50.00 in a note issued to investors on Monday,Benzinga reports. The brokerage presently has a “market outperform” rating on the stock. JMP Securities’ target price indicates a potential upside of 33.83% from the company’s previous close.

A number of other brokerages have also issued reports on DKNG. Needham & Company LLC reiterated a “buy” rating and set a $60.00 price target on shares of DraftKings in a research note on Friday, November 8th. TD Cowen increased their target price on shares of DraftKings from $50.00 to $55.00 and gave the stock a “buy” rating in a report on Tuesday, November 12th. Morgan Stanley boosted their price target on shares of DraftKings from $47.00 to $48.00 and gave the stock an “overweight” rating in a research note on Tuesday, October 22nd. Susquehanna increased their price objective on DraftKings from $48.00 to $50.00 and gave the company a “positive” rating in a research note on Monday, October 7th. Finally, Barclays boosted their target price on DraftKings from $45.00 to $50.00 and gave the stock an “overweight” rating in a research note on Monday, November 11th. Three investment analysts have rated the stock with a hold rating and twenty-three have given a buy rating to the company. According to MarketBeat.com, DraftKings presently has a consensus rating of “Moderate Buy” and a consensus price target of $50.92.

DraftKings Stock Performance

DraftKings stock opened at $37.36 on Monday. The firm has a 50 day simple moving average of $40.32 and a 200-day simple moving average of $37.90. The stock has a market cap of $32.90 billion, a price-to-earnings ratio of -42.45 and a beta of 1.90. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.00 and a quick ratio of 1.00. DraftKings has a 1-year low of $28.69 and a 1-year high of $49.57.

DraftKings (NASDAQ:DKNG) last issued its quarterly earnings data on Thursday, November 7th. The company reported ($0.60) EPS for the quarter, missing the consensus estimate of ($0.42) by ($0.18). DraftKings had a negative return on equity of 41.23% and a negative net margin of 9.06%. The company had revenue of $1.10 billion during the quarter, compared to analyst estimates of $1.12 billion. On average, analysts expect that DraftKings will post -0.79 EPS for the current year.

Insider Transactions at DraftKings

In related news, insider Jason Robins sold 3,151 shares of the firm’s stock in a transaction dated Thursday, November 21st. The shares were sold at an average price of $43.71, for a total value of $137,730.21. Following the completion of the sale, the insider now owns 2,631,033 shares in the company, valued at $115,002,452.43. This trade represents a 0.12 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Paul Liberman sold 88,441 shares of DraftKings 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 sale, the insider now directly owns 1,923,483 shares in the company, valued at $70,034,016.03. This represents a 4.40 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 852,183 shares of company stock worth $33,503,025. Company insiders own 51.19% of the company’s stock.

Institutional Trading of DraftKings

Several hedge funds have recently modified their holdings of DKNG. Alta Advisers Ltd acquired a new stake in DraftKings in the second quarter valued at $38,000. Redwood Wealth Management Group LLC acquired a new stake in shares of DraftKings in the second quarter valued at about $39,000. Delos Wealth Advisors LLC acquired a new stake in shares of DraftKings in the third quarter valued at about $43,000. V Square Quantitative Management LLC purchased a new stake in DraftKings during the third quarter worth about $46,000. Finally, Ashton Thomas Private Wealth LLC acquired a new position in DraftKings during the second quarter worth about $47,000. 37.70% of the stock is owned by institutional investors and hedge funds.

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.