Short Interest in DraftKings Inc. (NASDAQ:DKNG) Increases By 10.0%

DraftKings Inc. (NASDAQ:DKNG) saw a large growth in short interest in the month of September. As of September 15th, there was short interest totalling 25,800,000 shares, a growth of 10.0% from the August 31st total of 23,450,000 shares. Based on an average trading volume of 9,110,000 shares, the days-to-cover ratio is currently 2.8 days.

DraftKings Trading Down 1.8 %

Shares of NASDAQ:DKNG traded down $0.71 during midday trading on Tuesday, reaching $38.49. The company had a trading volume of 5,663,446 shares, compared to its average volume of 10,606,893. The company has a fifty day simple moving average of $35.67 and a two-hundred day simple moving average of $39.34. The company has a debt-to-equity ratio of 0.97, a quick ratio of 1.11 and a current ratio of 1.11. The firm has a market cap of $33.46 billion, a price-to-earnings ratio of -33.22 and a beta of 1.80. DraftKings has a 1-year low of $25.73 and a 1-year high of $49.57.

DraftKings (NASDAQ:DKNG) last announced its earnings results on Thursday, August 1st. The company reported $0.12 EPS for the quarter, topping the consensus estimate of ($0.01) by $0.13. DraftKings had a negative net margin of 9.45% and a negative return on equity of 43.11%. The company had revenue of $1.10 billion during the quarter, compared to analysts’ expectations of $1.11 billion. The business’s revenue for the quarter was up 26.2% on a year-over-year basis. During the same period last year, the company posted ($0.17) earnings per share. Research analysts predict that DraftKings will post -0.31 earnings per share for the current year.

Insiders Place Their Bets

In related news, insider Paul Liberman sold 643,654 shares of the stock in a transaction on Wednesday, September 25th. The stock was sold at an average price of $41.24, for a total transaction of $26,544,290.96. Following the completion of the sale, the insider now directly owns 137,308 shares of the company’s stock, valued at $5,662,581.92. The sale was disclosed in a filing with the SEC, which is available through the SEC website. In related news, insider Jason Robins sold 200,000 shares of DraftKings stock in a transaction on Wednesday, August 21st. The stock was sold at an average price of $35.25, for a total transaction of $7,050,000.00. Following the completion of the transaction, the insider now directly owns 2,678,082 shares of the company’s stock, valued at $94,402,390.50. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, insider Paul Liberman sold 643,654 shares of the company’s stock in a transaction on Wednesday, September 25th. The shares were sold at an average price of $41.24, for a total value of $26,544,290.96. Following the completion of the sale, the insider now directly owns 137,308 shares in the company, valued at approximately $5,662,581.92. The disclosure for this sale can be found here. In the last ninety days, insiders sold 1,195,301 shares of company stock valued at $45,355,362. 51.19% of the stock is owned by company insiders.

Institutional Trading of DraftKings

Several hedge funds and other institutional investors have recently modified their holdings of the business. Centaurus Financial Inc. increased its holdings in DraftKings by 5.6% in the second quarter. Centaurus Financial Inc. now owns 16,170 shares of the company’s stock worth $617,000 after buying an additional 859 shares during the last quarter. Sanctuary Advisors LLC acquired a new stake in shares of DraftKings in the second quarter worth about $1,530,000. Coronation Fund Managers Ltd. lifted its position in shares of DraftKings by 6.9% in the second quarter. Coronation Fund Managers Ltd. now owns 296,419 shares of the company’s stock worth $11,314,000 after buying an additional 19,127 shares during the last quarter. Truist Financial Corp boosted its stake in shares of DraftKings by 3.4% during the 2nd quarter. Truist Financial Corp now owns 122,608 shares of the company’s stock worth $4,680,000 after acquiring an additional 3,975 shares in the last quarter. Finally, EP Wealth Advisors LLC grew its holdings in DraftKings by 22.6% during the second quarter. EP Wealth Advisors LLC now owns 8,684 shares of the company’s stock valued at $331,000 after purchasing an additional 1,602 shares during the last quarter. Institutional investors and hedge funds own 37.70% of the company’s stock.

Analyst Ratings Changes

Several analysts have recently commented on DKNG shares. Barclays lowered their price target on shares of DraftKings from $53.00 to $43.00 and set an “overweight” rating on the stock in a research report on Monday, August 5th. JPMorgan Chase & Co. boosted their target price on shares of DraftKings from $48.00 to $54.00 and gave the company an “overweight” rating in a report on Thursday, September 26th. UBS Group upped their price target on shares of DraftKings from $56.00 to $58.00 and gave the stock a “buy” rating in a research report on Wednesday, September 4th. The Goldman Sachs Group decreased their price target on shares of DraftKings from $60.00 to $54.00 and set a “buy” rating on the stock in a report on Monday, August 5th. Finally, Wells Fargo & Company dropped their price target on DraftKings from $53.00 to $47.00 and set an “overweight” rating for the company in a research note on Monday, August 5th. Three investment analysts have rated the stock with a hold rating and twenty-four have given a buy rating to the stock. According to MarketBeat.com, DraftKings has an average rating of “Moderate Buy” and a consensus price target of $49.74.

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.