DraftKings (NASDAQ:DKNG) Stock Bumped Down to "Neutral" by JPMorgan Chase & Co.

Key Points

• JPMorgan downgraded DraftKings from “overweight” to “neutral” and set a $21 price target, implying 13.45% upside from the prior close.
• Analyst opinions remain mixed: the consensus rating is “Moderate Buy,” with an average price target of $30.39; other recent calls ranged from “hold” to “buy.”
• DraftKings missed quarterly expectations, reporting a loss of $0.53 per share versus estimates of $0.41 and revenue of $1.33 billion versus $1.39 billion expected, although revenue grew 16.2% year over year.

DraftKings (NASDAQ:DKNG - Get Free Report) was downgraded by JPMorgan Chase & Co. from an "overweight" rating to a "neutral" rating in a report released on Monday, Briefing.com reports. They presently have a $21.00 price target on the stock. JPMorgan Chase & Co.'s price objective indicates a potential upside of 13.45% from the company's previous close.

A number of other research analysts also recently issued reports on DKNG. Susquehanna cut their price objective on DraftKings from $33.00 to $27.00 and set a "positive" rating for the company in a research note on Thursday, October 8th. BTIG Research raised their target price on shares of DraftKings from $25.00 to $26.00 and gave the stock a "buy" rating in a research note on Thursday, October 29th. Stifel Nicolaus downgraded shares of DraftKings from a "buy" rating to a "hold" rating and lowered their price target for the company from $32.00 to $21.00 in a report on Monday. Citizens Jmp dropped their price target on shares of DraftKings from $37.00 to $35.00 and set a "market outperform" rating for the company in a research report on Thursday, September 24th. Finally, Benchmark upped their price target on shares of DraftKings from $29.00 to $30.00 and gave the stock a "buy" rating in a research report on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating, nine have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $30.39.

DraftKings Price Performance

DraftKings stock opened at $18.51 on Monday. DraftKings has a one year low of $16.55 and a one year high of $36.98. The stock has a fifty day moving average of $21.51 and a 200 day moving average of $24.06. 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 PE ratio of -23.14, a price-to-earnings-growth ratio of 2.43 and a beta of 1.65.

DraftKings (NASDAQ:DKNG - Get Free Report) last announced its earnings results on Thursday, November 5th. The company reported ($0.53) EPS 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 business had revenue of $1.33 billion for the quarter, compared to analysts' expectations of $1.39 billion. During the same period in the prior year, the company posted ($0.26) earnings per share. The firm's quarterly revenue was up 16.2% on a year-over-year basis. As a group, sell-side analysts predict that DraftKings will post 0.31 EPS for the current year.

Insider Buying and Selling at DraftKings

In related news, Director Jocelyn Moore sold 10,759 shares of the firm'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 transaction, the director directly owned 1,881 shares of the company's stock, valued at approximately $45,238.05. This trade represents a 85.12% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 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 institutional investors have recently made changes to their positions in the company. Kornitzer Capital Management Inc. KS lifted its position in shares of DraftKings by 0.4% in the third quarter. Kornitzer Capital Management Inc. KS now owns 176,620 shares of the company's stock worth $3,356,000 after buying an additional 691 shares in the last quarter. Integrity Advisory Solutions LLC boosted its stake in DraftKings by 8.2% during the third quarter. Integrity Advisory Solutions LLC now owns 10,571 shares of the company's stock valued at $201,000 after buying an additional 803 shares during the last quarter. CoreCap Advisors LLC boosted its stake in DraftKings by 336.5% during the second 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. Englebert Financial Advisers LLC boosted its stake in DraftKings by 1.3% during the third quarter. Englebert Financial Advisers LLC now owns 68,237 shares of the company's stock valued at $1,297,000 after buying an additional 897 shares during the last quarter. Finally, Janney Montgomery Scott LLC grew its holdings in DraftKings by 2.0% during the 1st quarter. Janney Montgomery Scott LLC now owns 51,855 shares of the company's stock valued at $1,121,000 after buying an additional 1,028 shares in the last quarter. Hedge funds and other institutional investors own 37.70% of the company's stock.

About DraftKings

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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