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

DraftKings Inc. (NASDAQ:DKNG) was the recipient of some unusual options trading on Friday. Traders purchased 118,696 call options on the company. This is an increase of approximately 54% compared to the typical daily volume of 77,140 call options.

DraftKings Trading Down 3.4%

NASDAQ DKNG opened at $34.00 on Friday. The company has a market capitalization of $16.92 billion, a price-to-earnings ratio of -59.65, a price-to-earnings-growth ratio of 2.82 and a beta of 1.60. The company has a debt-to-equity ratio of 2.51, a current ratio of 1.10 and a quick ratio of 1.09. DraftKings has a 12 month low of $26.23 and a 12 month high of $53.61. The company’s fifty day moving average price is $32.52 and its two-hundred day moving average price is $38.91.

DraftKings (NASDAQ:DKNG) last issued its earnings results on Friday, November 7th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.01 by ($0.27). DraftKings had a negative net margin of 4.90% and a negative return on equity of 22.84%. The company had revenue of $1.14 billion during the quarter, compared to analyst estimates of $1.40 billion. During the same quarter last year, the company posted ($0.60) EPS. The business’s revenue for the quarter was up 4.4% compared to the same quarter last year. As a group, research analysts predict that DraftKings will post 0.64 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several research firms have recently weighed in on DKNG. Berenberg Bank set a $43.00 price objective on DraftKings and gave the company a “buy” rating in a research note on Thursday, October 9th. Northland Securities raised DraftKings from an “under perform” rating to a “market perform” rating in a research report on Monday, November 10th. Oppenheimer lowered their target price on DraftKings from $60.00 to $55.00 and set an “outperform” rating for the company in a research note on Wednesday, October 1st. Stifel Nicolaus reissued a “buy” rating and set a $46.00 price target (down from $50.00) on shares of DraftKings in a research report on Monday, November 10th. Finally, Sanford C. Bernstein lowered their price objective on shares of DraftKings from $50.00 to $41.00 and set an “outperform” rating for the company in a research report on Monday, November 10th. Twenty-five investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, DraftKings currently has a consensus rating of “Moderate Buy” and an average price target of $47.48.

Insider Buying and Selling

In related news, insider R Stanton Dodge sold 52,777 shares of the stock in a transaction dated Monday, December 1st. The stock was sold at an average price of $33.84, for a total transaction of $1,785,973.68. Following the transaction, the insider directly owned 512,182 shares in the company, valued at approximately $17,332,238.88. This represents a 9.34% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Gregory Westin Wendt bought 10,000 shares of the firm’s stock in a transaction that occurred on Tuesday, November 11th. The stock was bought at an average cost of $30.27 per share, for a total transaction of $302,700.00. Following the completion of the transaction, the director directly owned 10,000 shares of the company’s stock, valued at approximately $302,700. The trade was a ∞ increase in their position. The SEC filing for this purchase provides additional information. In the last 90 days, insiders have sold 166,752 shares of company stock worth $5,387,153. 51.19% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of DKNG. TD Private Client Wealth LLC increased its holdings in shares of DraftKings by 54.4% in the 2nd quarter. TD Private Client Wealth LLC now owns 800 shares of the company’s stock valued at $34,000 after acquiring an additional 282 shares during the last quarter. Ameriflex Group Inc. lifted its stake in DraftKings by 100.0% during the third quarter. Ameriflex Group Inc. now owns 810 shares of the company’s stock worth $30,000 after purchasing an additional 405 shares during the last quarter. Root Financial Partners LLC acquired a new position in DraftKings in the third quarter worth $33,000. Asset Dedication LLC bought a new stake in DraftKings during the third quarter valued at $37,000. Finally, Summit Securities Group LLC raised its holdings in shares of DraftKings by 349.1% during the first quarter. Summit Securities Group LLC now owns 1,042 shares of the company’s stock worth $35,000 after purchasing an additional 810 shares during the period. Institutional investors own 37.70% of the company’s stock.

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.