DraftKings Sees Unusually Large Options Volume (NASDAQ:DKNG)

DraftKings Inc. (NASDAQ:DKNG) was the recipient of some unusual options trading on Tuesday. Traders bought 72,898 call options on the stock. This is an increase of approximately 37% compared to the typical daily volume of 53,170 call options.

Insider Activity at DraftKings

In other news, insider Jason Robins sold 3,151 shares of the company’s stock in a transaction 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 completion of the transaction, the insider now owns 2,631,033 shares in the company, valued at approximately $115,002,452.43. This represents a 0.12 % decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Paul Liberman sold 532,095 shares of DraftKings stock in a transaction on 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 sale, the insider now owns 68,654 shares in the company, valued at $2,629,448.20. This represents a 88.57 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 963,742 shares of company stock valued at $38,082,888 over the last quarter. 48.94% of the stock is owned by insiders.

Hedge Funds Weigh In On DraftKings

Large investors have recently added to or reduced their stakes in the business. Lingotto Investment Management LLP acquired a new position in shares of DraftKings in the 4th quarter valued at $2,812,000. Amalgamated Bank raised its position in shares of DraftKings by 1.1% in the 4th quarter. Amalgamated Bank now owns 29,911 shares of the company’s stock worth $1,113,000 after buying an additional 327 shares during the period. IFP Advisors Inc boosted its holdings in DraftKings by 23.1% in the fourth quarter. IFP Advisors Inc now owns 41,477 shares of the company’s stock valued at $1,543,000 after acquiring an additional 7,785 shares during the last quarter. Greystone Financial Group LLC grew its position in DraftKings by 2.5% during the fourth quarter. Greystone Financial Group LLC now owns 19,949 shares of the company’s stock valued at $742,000 after acquiring an additional 490 shares during the period. Finally, Compass Capital Corp MA ADV acquired a new stake in DraftKings during the fourth quarter worth about $359,000. 37.70% of the stock is currently owned by hedge funds and other institutional investors.

DraftKings Stock Performance

NASDAQ:DKNG opened at $41.75 on Wednesday. DraftKings has a 1-year low of $28.69 and a 1-year high of $49.57. The firm has a 50 day simple moving average of $40.43 and a 200-day simple moving average of $38.26. The firm has a market cap of $36.77 billion, a PE ratio of -47.44, a P/E/G ratio of 3.14 and a beta of 1.93. 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 (NASDAQ:DKNG) last issued its quarterly earnings results on Thursday, November 7th. The company reported ($0.60) earnings per share for the quarter, missing the consensus estimate of ($0.42) by ($0.18). DraftKings had a negative net margin of 9.06% and a negative return on equity of 41.23%. The business had revenue of $1.10 billion during the quarter, compared to analyst estimates of $1.12 billion. On average, equities analysts expect that DraftKings will post -0.93 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Macquarie increased their price target on shares of DraftKings from $50.00 to $51.00 and gave the stock an “outperform” rating in a research note on Monday, November 11th. Morgan Stanley increased their target price 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. Needham & Company LLC reissued a “buy” rating and set a $60.00 price target on shares of DraftKings in a report on Friday, November 8th. TD Cowen reduced their price objective on DraftKings from $55.00 to $51.00 and set a “buy” rating for the company in a research note on Tuesday. Finally, Wells Fargo & Company lifted their target price on DraftKings from $47.00 to $52.00 and gave the company an “overweight” rating in a research note on Thursday, October 17th. Three research analysts have rated the stock with a hold rating and twenty-three have assigned a buy rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $50.92.

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.