DraftKings Inc. (NASDAQ:DKNG) Receives Consensus Rating of “Moderate Buy” from Analysts

DraftKings Inc. (NASDAQ:DKNG) has been given an average rating of “Moderate Buy” by the thirty-nine ratings firms that are currently covering the company, Marketbeat.com reports. Two analysts have rated the stock with a sell rating, nine have issued a hold rating, twenty-seven have issued a buy rating and one has given a strong buy rating to the company. The average 12 month target price among brokers that have covered the stock in the last year is $34.3241.

DKNG has been the topic of a number of recent research reports. Jefferies Financial Group cut DraftKings from a “buy” rating to a “hold” rating in a research note on Friday, April 24th. Bank of America reduced their price objective on DraftKings from $37.50 to $30.00 and set a “neutral” rating on the stock in a research note on Friday, February 13th. Barclays boosted their price objective on DraftKings from $33.00 to $35.00 and gave the stock an “overweight” rating in a research note on Monday, May 11th. Mizuho lifted their target price on DraftKings from $44.00 to $45.00 and gave the stock an “outperform” rating in a research report on Tuesday, May 12th. Finally, Freedom Capital raised DraftKings to a “strong-buy” rating in a research report on Wednesday, May 20th.

DraftKings Trading Down 0.2%

Shares of DKNG opened at $24.49 on Friday. The stock’s 50-day moving average is $23.61 and its two-hundred day moving average is $27.78. The stock has a market cap of $12.15 billion, a PE ratio of 408.17 and a beta of 1.67. DraftKings has a 12 month low of $20.46 and a 12 month high of $48.78. The company has a debt-to-equity ratio of 3.03, a current ratio of 1.02 and a quick ratio of 1.02.

DraftKings (NASDAQ:DKNG) last issued its quarterly earnings data on Friday, May 8th. The company reported $0.20 EPS for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.02). The company had revenue of $1.65 billion for the quarter, compared to analyst estimates of $1.63 billion. DraftKings had a return on equity of 13.51% and a net margin of 0.93%.The company’s revenue for the quarter was up 16.8% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($0.07) EPS. Equities analysts forecast that DraftKings will post 0.6 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Jocelyn Moore sold 2,150 shares of DraftKings stock in a transaction dated Friday, March 13th. The stock was sold at an average price of $25.60, for a total transaction of $55,040.00. Following the sale, the director directly owned 1,406 shares of the company’s stock, valued at approximately $35,993.60. The trade was a 60.46% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Woodrow Levin sold 34,234 shares of DraftKings stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $25.71, for a total value of $880,156.14. Following the sale, the director directly owned 29,820 shares in the company, valued at approximately $766,672.20. The trade was a 53.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 524,546 shares of company stock valued at $13,215,769 in the last three months. 47.18% of the stock is owned by insiders.

Institutional Trading of DraftKings

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Vanguard Group Inc. increased its holdings in DraftKings by 3.1% in the fourth quarter. Vanguard Group Inc. now owns 44,758,204 shares of the company’s stock valued at $1,542,368,000 after buying an additional 1,354,457 shares during the last quarter. Citigroup Inc. increased its holdings in DraftKings by 40.6% in the third quarter. Citigroup Inc. now owns 1,939,764 shares of the company’s stock valued at $72,547,000 after buying an additional 560,139 shares during the last quarter. Bedell Frazier Investment Counselling LLC bought a new stake in DraftKings in the third quarter valued at about $4,492,000. Waycross Partners LLC bought a new stake in DraftKings in the fourth quarter valued at about $2,584,000. Finally, DAVENPORT & Co LLC increased its holdings in DraftKings by 11.2% in the fourth quarter. DAVENPORT & Co LLC now owns 3,456,735 shares of the company’s stock valued at $119,602,000 after buying an additional 348,333 shares during the last quarter. 37.70% of the stock is owned by hedge funds and other institutional investors.

DraftKings Company Profile

DraftKings Inc is a leading digital sports entertainment and gaming company specializing in daily fantasy sports, sports betting and iGaming products. The company provides an integrated platform where users can participate in daily fantasy contests, place wagers on professional sports events, and enjoy a range of online casino-style games. DraftKings’ proprietary technology supports real-time odds, live scoring and advanced analytics to enhance the user experience across mobile and desktop applications.

Founded in 2012 by co-founders Jason Robins, Matthew Kalish and Paul Liberman, DraftKings began as a daily fantasy sports provider and rapidly expanded into regulated sports betting following legislative changes in the United States.