DraftKings (NASDAQ:DKNG) Given New $22.00 Price Target at Sanford C. Bernstein

Key Points

• Sanford C. Bernstein lowered DraftKings’ price target from $27 to $22 while maintaining an “outperform” rating; the new target implies 18.85% upside from the prior close.
• DraftKings reported a quarterly loss of $0.53 per share, worse than analysts’ $0.41 loss estimate, and revenue of $1.33 billion versus a $1.39 billion consensus. Revenue nevertheless increased 16.2% year over year.
• Analysts’ consensus rating is “Moderate Buy,” with an average price target of $30.39.

DraftKings (NASDAQ:DKNG - Get Free Report) had its price target lowered by investment analysts at Sanford C. Bernstein from $27.00 to $22.00 in a report released on Monday, MarketBeat reports. The firm currently has an "outperform" rating on the stock. Sanford C. Bernstein's target price suggests a potential upside of 18.85% from the stock's previous close.

DKNG has been the topic of a number of other reports. Canaccord Genuity Group dropped their price objective on shares of DraftKings from $44.00 to $40.00 and set a "buy" rating on the stock in a report on Friday, October 23rd. Needham & Company LLC cut their price objective on shares of DraftKings from $30.00 to $25.00 and set a "buy" rating on the stock in a research report on Monday. Northland Securities set a $28.00 target price on shares of DraftKings in a research note on Monday, August 10th. Citigroup lowered their target price on DraftKings from $32.00 to $28.00 and set a "buy" rating for the company in a report on Monday, October 12th. Finally, Wolfe Research initiated coverage on DraftKings in a research note on Wednesday, September 2nd. They issued an "outperform" rating and a $40.00 price target on the stock. One analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating, nine have given a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $30.39.

DraftKings Price Performance

NASDAQ DKNG opened at $18.51 on Monday. 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 stock has a market cap of $9.19 billion, a price-to-earnings ratio of -23.14, a PEG ratio of 2.43 and a beta of 1.65. The business has a 50 day simple moving average of $21.51 and a 200 day simple moving average of $24.06. DraftKings has a 52-week low of $16.55 and a 52-week high of $36.98.

DraftKings (NASDAQ:DKNG - Get Free Report) last announced its quarterly earnings results on Thursday, November 5th. The company reported ($0.53) earnings per share for the quarter, missing analysts' consensus estimates of ($0.41) by ($0.12). DraftKings had a negative net margin of 5.91% and a negative return on equity of 36.21%. The company had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.39 billion. During the same period in the previous year, the firm posted ($0.26) EPS. The business's quarterly revenue was up 16.2% compared to the same quarter last year. Analysts anticipate that DraftKings will post 0.31 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Jocelyn Moore sold 10,759 shares of DraftKings stock in a transaction dated Wednesday, August 19th. The stock was 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 of the company's stock, valued at approximately $45,238.05. The trade was a 85.12% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 47.18% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. Ibex Investors LLC increased its position in DraftKings by 92.3% during the third quarter. Ibex Investors LLC now owns 125,000 shares of the company's stock worth $2,375,000 after buying an additional 60,000 shares during the last quarter. Machina Capital S.A.S. bought a new stake in DraftKings in the third quarter valued at approximately $224,000. Illinois Municipal Retirement Fund lifted its position in shares of DraftKings by 2.2% in the third quarter. Illinois Municipal Retirement Fund now owns 124,757 shares of the company's stock valued at $2,370,000 after buying an additional 2,684 shares during the last quarter. Lido Advisors LLC lifted its position in shares of DraftKings by 6.8% in the third quarter. Lido Advisors LLC now owns 19,677 shares of the company's stock valued at $374,000 after buying an additional 1,258 shares during the last quarter. Finally, Fulcrum Asset Management LLP lifted its position in shares of DraftKings by 76.0% in the third quarter. Fulcrum Asset Management LLP now owns 23,906 shares of the company's stock valued at $468,000 after buying an additional 10,321 shares during the last quarter. 37.70% of the stock is currently owned by institutional investors.

DraftKings Company Profile

DraftKings Inc is a digital sports and entertainment company founded in 2012. It began as a daily fantasy sports platform and has since expanded into online sports betting and gaming.

The company offers daily fantasy contests, a sportsbook and online casino products, including games such as slots and table games. Its services are available in a range of U.S. jurisdictions and in Ontario, Canada, where permitted by local regulations.

DraftKings is headquartered in Boston, Massachusetts.

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