DraftKings Inc. (NASDAQ:DKNG) Receives Average Recommendation of “Moderate Buy” from Brokerages

Shares of DraftKings Inc. (NASDAQ:DKNG) have been assigned an average rating of “Moderate Buy” from the forty brokerages that are currently covering the firm, Marketbeat Ratings reports. Two equities research analysts have rated the stock with a sell recommendation, eight have issued a hold recommendation, twenty-nine have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 12-month price target among brokerages that have issued ratings on the stock in the last year is $34.2065.

DKNG has been the topic of several recent analyst reports. Wedbush initiated coverage on DraftKings in a research note on Friday, April 24th. They set an “outperform” rating on the stock. Truist Financial cut their target price on DraftKings from $33.00 to $30.00 and set a “buy” rating on the stock in a research note on Tuesday, April 21st. Barclays increased their target price on DraftKings from $33.00 to $35.00 and gave the company an “overweight” rating in a research note on Monday, May 11th. Stephens initiated coverage on DraftKings in a research note on Friday, April 24th. They set an “overweight” rating on the stock. Finally, Morgan Stanley reiterated an “overweight” rating on shares of DraftKings in a research note on Thursday, May 21st.

DraftKings Stock Down 1.9%

DKNG stock opened at $25.15 on Wednesday. DraftKings has a twelve month low of $20.46 and a twelve month high of $48.78. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 3.03. The firm has a market cap of $12.48 billion, a PE ratio of 419.17 and a beta of 1.66. The business has a 50 day moving average of $25.00 and a 200 day moving average of $27.24.

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

Insider Buying and Selling at DraftKings

In other DraftKings news, Director Woodrow Levin sold 34,234 shares of the stock in a transaction on Monday, May 18th. The stock was sold at an average price of $25.71, for a total transaction of $880,156.14. Following the sale, the director directly owned 29,820 shares in the company, valued at approximately $766,672.20. This trade represents a 53.45% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider R Stanton Dodge sold 62,500 shares of the stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $29.68, for a total value of $1,855,000.00. Following the sale, the insider owned 556,258 shares in the company, valued at approximately $16,509,737.44. This represents a 10.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 97,596 shares of company stock worth $2,756,991. Company insiders own 47.18% of the company’s stock.

Hedge Funds Weigh In On DraftKings

Institutional investors and hedge funds have recently modified their holdings of the company. Dagco Inc. purchased a new position in shares of DraftKings in the 4th quarter worth $26,000. Ascentis Independent Advisors purchased a new position in shares of DraftKings in the 1st quarter worth $27,000. Ameriflex Group Inc. boosted its stake in shares of DraftKings by 100.0% in the 3rd quarter. Ameriflex Group Inc. now owns 810 shares of the company’s stock worth $30,000 after buying an additional 405 shares during the last quarter. Asset Dedication LLC purchased a new position in shares of DraftKings in the 3rd quarter worth $37,000. Finally, Montag A & Associates Inc. boosted its stake in shares of DraftKings by 82.5% in the 4th quarter. Montag A & Associates Inc. now owns 1,106 shares of the company’s stock worth $38,000 after buying an additional 500 shares during the last quarter. 37.70% of the stock is currently 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.