Citizens Jmp Forecasts Strong Price Appreciation for DraftKings (NASDAQ:DKNG) Stock

Key Points

• Citizens Jmp raised DraftKings’ price target from $36 to $37 and maintained a “market outperform” rating, implying approximately 58% upside from the prior close.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus rating and an average price target of $34.39, despite targets ranging from $20 to $37.
• DraftKings beat quarterly EPS expectations but missed revenue estimates: it reported $0.09 EPS versus $0.02 expected, while revenue fell 4.6% year over year to $1.44 billion.

DraftKings (NASDAQ:DKNG - Get Free Report) had its target price upped by research analysts at Citizens Jmp from $36.00 to $37.00 in a research report issued on Tuesday, Benzinga reports. The brokerage currently has a "market outperform" rating on the stock. Citizens Jmp's target price would suggest a potential upside of 57.93% from the stock's previous close.

DKNG has been the subject of several other research reports. BNP Paribas Exane assumed coverage on DraftKings in a research note on Thursday, May 14th. They issued an "underperform" rating and a $20.00 price target for the company. Benchmark raised their price objective on DraftKings from $29.00 to $30.00 and gave the company a "buy" rating in a report on Friday, August 7th. Guggenheim cut their price objective on DraftKings from $35.00 to $33.00 and set a "buy" rating for the company in a research report on Monday, August 10th. Wells Fargo & Company reduced their target price on DraftKings from $32.00 to $29.00 and set an "overweight" rating for the company in a research note on Monday, July 20th. Finally, Truist Financial set a $29.00 target price on DraftKings in a research note on Monday, August 10th. One investment analyst has rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, DraftKings has an average rating of "Moderate Buy" and an average target price of $34.39.

DraftKings Stock Performance

Shares of NASDAQ DKNG opened at $23.43 on Tuesday. The company's fifty day moving average price is $24.75 and its 200 day moving average price is $24.51. DraftKings has a 1 year low of $20.46 and a 1 year high of $46.51. The company has a market capitalization of $11.63 billion, a PE ratio of -61.72, a price-to-earnings-growth ratio of 1.96 and a beta of 1.63. The company has a debt-to-equity ratio of 3.22, a quick ratio of 1.02 and a current ratio of 1.02.

DraftKings (NASDAQ:DKNG - Get Free Report) last released its quarterly earnings results on Friday, August 7th. The company reported $0.09 EPS for the quarter, beating the consensus estimate of $0.02 by $0.07. DraftKings had a negative net margin of 2.68% and a negative return on equity of 11.26%. The company had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.51 billion. During the same quarter last year, the business earned $0.30 earnings per share. The firm's revenue was down 4.6% on a year-over-year basis. On average, research analysts predict that DraftKings will post 0.49 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Jocelyn Moore sold 10,759 shares of the company's stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $24.05, for a total transaction of $258,753.95. Following the completion of the sale, the director owned 1,881 shares of the company's stock, valued at $45,238.05. This represents a 85.12% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Robert Dodge sold 62,500 shares of the stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $29.68, for a total transaction of $1,855,000.00. Following the completion of the sale, the insider owned 556,258 shares of the company's stock, valued at $16,509,737.44. This trade represents a 10.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 47.18% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Ascentis Independent Advisors purchased a new position in shares of DraftKings during the 1st quarter worth $27,000. Basecamp Wealth Advisors LLC grew its holdings in shares of DraftKings by 3,547.1% in the first quarter. Basecamp Wealth Advisors LLC now owns 1,240 shares of the company's stock valued at $27,000 after purchasing an additional 1,206 shares during the period. CoreCap Advisors LLC increased its position in DraftKings by 336.5% during the second quarter. CoreCap Advisors LLC now owns 1,148 shares of the company's stock worth $29,000 after purchasing an additional 885 shares during the last quarter. SHP Wealth Management acquired a new stake in DraftKings during the fourth quarter worth about $42,000. Finally, Root Financial Partners LLC raised its stake in DraftKings by 208.0% during the first quarter. Root Financial Partners LLC now owns 2,775 shares of the company's stock worth $60,000 after purchasing an additional 1,874 shares during the period. 37.70% of the stock is currently owned by institutional investors and hedge funds.

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.

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