DraftKings (NASDAQ:DKNG) Given Buy Rating at Needham & Company LLC

Key Points

• Needham reiterated its “Buy” rating on DraftKings and maintained a $35 price target, implying 55.76% upside from the prior close.
• Analyst sentiment remains broadly positive: DraftKings has an average “Moderate Buy” rating and a consensus price target of $34.39, despite some recent target reductions and one downgrade to “Sell.”
• DraftKings beat quarterly EPS estimates but missed revenue expectations, reporting $0.09 EPS versus $0.02 expected and $1.44 billion in revenue versus $1.51 billion estimated; revenue declined 4.6% year over year.

DraftKings (NASDAQ:DKNG - Get Free Report)'s stock had its "buy" rating reiterated by Needham & Company LLC in a research report issued on Friday, Marketbeat reports. They presently have a $35.00 price target on the stock. Needham & Company LLC's price objective would suggest a potential upside of 55.76% from the stock's previous close.

Several other equities research analysts also recently commented on the stock. Guggenheim lowered their price objective on shares of DraftKings from $35.00 to $33.00 and set a "buy" rating for the company in a research note on Monday, August 10th. JPMorgan Chase & Co. cut their target price on DraftKings from $34.00 to $33.00 and set an "overweight" rating on the stock in a research report on Monday, August 10th. Susquehanna reduced their target price on DraftKings from $32.00 to $31.00 and set a "positive" rating for the company in a research note on Wednesday, July 1st. New Street Research set a $29.00 price target on DraftKings in a research report on Monday, June 1st. Finally, Wall Street Zen downgraded DraftKings from a "hold" rating to a "sell" rating in a research note on Saturday, August 15th. One equities research analyst has rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, eight have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $34.39.

DraftKings Price Performance

Shares of DKNG stock opened at $22.47 on Friday. DraftKings has a fifty-two week low of $20.46 and a fifty-two week high of $44.22. The company has a debt-to-equity ratio of 3.22, a quick ratio of 1.02 and a current ratio of 1.02. The firm has a market capitalization of $11.16 billion, a price-to-earnings ratio of -59.13, a PEG ratio of 1.99 and a beta of 1.63. The stock's 50-day simple moving average is $24.41 and its 200-day simple moving average is $24.58.

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

Insider Activity at DraftKings

In other news, Director Jocelyn Moore sold 10,759 shares of the stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $24.05, for a total value of $258,753.95. Following the sale, the director owned 1,881 shares in the company, valued at $45,238.05. This represents a 85.12% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 47.18% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in DKNG. Global Retirement Partners LLC increased its stake in DraftKings by 3.8% in the 4th quarter. Global Retirement Partners LLC now owns 10,365 shares of the company's stock valued at $357,000 after buying an additional 379 shares during the period. Transatlantique Private Wealth LLC boosted its stake in shares of DraftKings by 1.7% during the 4th quarter. Transatlantique Private Wealth LLC now owns 26,783 shares of the company's stock valued at $923,000 after buying an additional 437 shares during the period. Harbour Investments Inc. boosted its stake in shares of DraftKings by 32.7% during the 4th quarter. Harbour Investments Inc. now owns 2,680 shares of the company's stock valued at $92,000 after buying an additional 660 shares during the period. TD Private Client Wealth LLC boosted its stake in shares of DraftKings by 62.3% during the 4th quarter. TD Private Client Wealth LLC now owns 1,891 shares of the company's stock valued at $65,000 after buying an additional 726 shares during the period. Finally, CoreCap Advisors LLC grew its holdings in shares of DraftKings by 336.5% during the 2nd quarter. CoreCap Advisors LLC now owns 1,148 shares of the company's stock valued at $29,000 after acquiring an additional 885 shares in the last quarter. 37.70% of the stock is currently owned by institutional investors and hedge funds.

DraftKings Company Profile

DraftKings Inc is a digital sports entertainment and gaming company that operates online sports betting, iGaming and daily fantasy sports platforms. Its products enable customers to place bets on professional and collegiate sports, play online casino games where permitted, and participate in fantasy contests across a range of sports.

The company also offers related services, including retail sportsbooks in select jurisdictions and sports media content through DraftKings Network. Its offerings are available in U.S.

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