Traders Purchase High Volume of Call Options on DraftKings (NASDAQ:DKNG)

DraftKings Inc. (NASDAQ:DKNGGet Free Report) was the recipient of some unusual options trading on Friday. Investors bought 113,910 call options on the company. This represents an increase of approximately 50% compared to the typical daily volume of 76,022 call options.

Insider Buying and Selling at DraftKings

In other news, CFO Jason Park sold 750,000 shares of the company’s stock in a transaction on Tuesday, November 21st. The stock was sold at an average price of $38.27, for a total value of $28,702,500.00. Following the sale, the chief financial officer now directly owns 105,217 shares in the company, valued at $4,026,654.59. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. In other news, insider R Stanton Dodge sold 686,101 shares of the firm’s stock in a transaction on Thursday, February 8th. The stock was sold at an average price of $43.06, for a total transaction of $29,543,509.06. Following the sale, the insider now owns 200,239 shares in the company, valued at $8,622,291.34. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Jason Park sold 750,000 shares of the company’s stock in a transaction on Tuesday, November 21st. The shares were sold at an average price of $38.27, for a total value of $28,702,500.00. Following the completion of the transaction, the chief financial officer now owns 105,217 shares of the company’s stock, valued at $4,026,654.59. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 3,390,485 shares of company stock worth $132,291,151. 51.19% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. Westfield Capital Management Co. LP acquired a new stake in shares of DraftKings during the 4th quarter valued at approximately $59,467,000. Nomura Asset Management Co. Ltd. raised its holdings in shares of DraftKings by 8.1% during the fourth quarter. Nomura Asset Management Co. Ltd. now owns 107,140 shares of the company’s stock worth $3,777,000 after purchasing an additional 8,000 shares during the period. Advisory Services Network LLC boosted its holdings in shares of DraftKings by 6.1% in the 4th quarter. Advisory Services Network LLC now owns 11,403 shares of the company’s stock valued at $402,000 after buying an additional 660 shares during the period. Oxford Asset Management LLP bought a new stake in shares of DraftKings during the 4th quarter valued at about $2,086,000. Finally, SageView Advisory Group LLC bought a new position in shares of DraftKings during the fourth quarter valued at approximately $184,000. Institutional investors and hedge funds own 32.84% of the company’s stock.

DraftKings Stock Performance

Shares of DKNG stock opened at $43.38 on Friday. The stock has a market capitalization of $37.27 billion, a price-to-earnings ratio of -19.90 and a beta of 1.87. DraftKings has a one year low of $15.56 and a one year high of $44.04. The company’s 50-day simple moving average is $36.70 and its 200-day simple moving average is $32.99. The company has a debt-to-equity ratio of 1.56, a quick ratio of 1.29 and a current ratio of 1.29.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on DKNG. Needham & Company LLC reiterated a “buy” rating and set a $50.00 price objective on shares of DraftKings in a report on Tuesday, December 26th. BMO Capital Markets assumed coverage on shares of DraftKings in a research note on Tuesday, January 9th. They set an “outperform” rating and a $43.00 price objective for the company. Truist Financial upped their price objective on DraftKings from $44.00 to $45.00 and gave the stock a “buy” rating in a report on Monday, November 6th. Stifel Nicolaus upgraded DraftKings from a “hold” rating to a “buy” rating and upped their price target for the stock from $40.00 to $45.00 in a research note on Friday, January 19th. Finally, UBS Group raised their price objective on DraftKings from $39.00 to $44.00 and gave the stock a “buy” rating in a report on Tuesday, November 7th. Two equities research analysts have rated the stock with a sell rating, two have issued a hold rating and twenty-two have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $38.56.

Check Out Our Latest Analysis on DKNG

DraftKings Company Profile

(Get Free Report)

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.

Further Reading

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