DraftKings (NASDAQ:DKNG) Now Covered by Wolfe Research

Key Points

• Wolfe Research initiated coverage of DraftKings with an “outperform” rating and a $40 price target, implying 65.22% upside from the prior close.
• DraftKings has a “Moderate Buy” consensus rating from analysts, with an average price target of $34.29; 31 analysts rate the stock Buy or Strong Buy, while 10 rate it Hold or Sell.
• The company recently beat quarterly EPS estimates, reporting $0.09 versus expectations of $0.02, but revenue of $1.44 billion fell short of estimates and declined 4.6% year over year.

Stock analysts at Wolfe Research started coverage on shares of DraftKings (NASDAQ:DKNG - Get Free Report) in a research report issued to clients and investors on Wednesday, MarketBeat.com reports. The brokerage set an "outperform" rating and a $40.00 price target on the stock. Wolfe Research's price objective suggests a potential upside of 65.22% from the company's previous close.

DKNG has been the subject of several other reports. Citizens Jmp boosted their target price on DraftKings from $34.00 to $36.00 and gave the company a "market outperform" rating in a report on Thursday, June 25th. Truist Financial set a $29.00 price target on shares of DraftKings in a report on Monday, August 10th. Susquehanna reduced their price objective on shares of DraftKings from $32.00 to $31.00 and set a "positive" rating for the company in a research report on Wednesday, July 1st. Moffett Nathanson decreased their price target on DraftKings from $27.00 to $25.00 in a research note on Wednesday, July 15th. Finally, TD Cowen raised their target price on DraftKings from $30.00 to $35.00 and gave the company a "buy" rating in a report on Friday, July 10th. One investment analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating, eight have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $34.29.

DraftKings Price Performance

DraftKings stock opened at $24.21 on Wednesday. DraftKings has a 12-month low of $20.46 and a 12-month high of $48.78. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 3.22. The stock has a market cap of $12.02 billion, a P/E ratio of -63.71, a price-to-earnings-growth ratio of 1.83 and a beta of 1.63. The company has a fifty day simple moving average of $24.80 and a 200-day simple moving average of $24.47.

DraftKings (NASDAQ:DKNG - Get Free Report) last released its quarterly earnings data on Friday, August 7th. The company reported $0.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.02 by $0.07. The business had revenue of $1.44 billion during the quarter, compared to analysts' expectations of $1.51 billion. DraftKings had a negative return on equity of 11.26% and a negative net margin of 2.68%.The business's quarterly revenue was down 4.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.30 EPS. Equities analysts expect that DraftKings will post 0.51 EPS for the current fiscal year.

Insider Activity

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

Institutional Trading of DraftKings

Large investors have recently bought and sold shares of the company. CoreCap Advisors LLC boosted its position in DraftKings by 336.5% in the 2nd quarter. CoreCap Advisors LLC now owns 1,148 shares of the company's stock valued at $29,000 after buying an additional 885 shares during the last quarter. SHP Wealth Management purchased a new stake in shares of DraftKings during the fourth quarter worth about $42,000. Basecamp Wealth Advisors LLC increased its position in shares of DraftKings by 3,547.1% during the first quarter. Basecamp Wealth Advisors LLC now owns 1,240 shares of the company's stock worth $27,000 after acquiring an additional 1,206 shares during the last quarter. Ascentis Independent Advisors acquired a new position in shares of DraftKings in the first quarter worth about $27,000. Finally, Advisory Services Network LLC purchased a new position in DraftKings in the third quarter valued at about $62,000. Institutional investors and hedge funds own 37.70% of the company's stock.

About DraftKings

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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