DraftKings (NASDAQ:DKNG) Stock Price Target Lowered at BTIG Research

Key Points

• BTIG Research cut DraftKings’ price target from $26 to $23 but maintained a Buy rating, implying 24.26% upside from the prior close.
• Analyst sentiment is broadly positive: DraftKings has a consensus “Moderate Buy” rating and an average price target of $30.39.
• DraftKings missed quarterly earnings and revenue estimates, reporting EPS of -$0.53 versus -$0.41 expected and revenue of $1.33 billion versus $1.39 billion expected; revenue nevertheless grew 16.2% year over year.

DraftKings (NASDAQ:DKNG - Get Free Report) had its target price dropped by research analysts at BTIG Research from $26.00 to $23.00 in a research report issued to clients and investors on Monday, Benzinga reports. The firm currently has a "buy" rating on the stock. BTIG Research's price target would indicate a potential upside of 24.26% from the stock's previous close.

Several other brokerages have also weighed in on DKNG. Northland Securities set a $28.00 target price on DraftKings in a research report on Monday, August 10th. Weiss Ratings cut DraftKings from a "sell (d)" rating to a "sell (e+)" rating in a research note on Friday, August 21st. Benchmark upped their price target on DraftKings from $29.00 to $30.00 and gave the company a "buy" rating in a report on Friday, August 7th. Moffett Nathanson reiterated a "neutral" rating and issued a $22.00 price target on shares of DraftKings in a research note on Thursday, October 22nd. Finally, Barclays dropped their price target on shares of DraftKings from $35.00 to $34.00 and set an "overweight" rating on the stock in a research note on Monday, August 10th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, nine have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $30.39.

DraftKings Price Performance

DraftKings stock opened at $18.51 on Monday. The stock has a market cap of $9.19 billion, a PE ratio of -23.14, a P/E/G ratio of 2.43 and a beta of 1.65. The company has a debt-to-equity ratio of 3.22, a current ratio of 1.02 and a quick ratio of 1.02. The stock's fifty day moving average is $21.51 and its two-hundred day moving average is $24.06. DraftKings has a 1-year low of $16.55 and a 1-year high of $36.98.

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

Insider Buying and Selling at DraftKings

In related news, Director Jocelyn Moore sold 10,759 shares of the stock in a transaction on 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 of the company's stock, valued at $45,238.05. This trade represents a 85.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 47.18% of the company's stock.

Hedge Funds Weigh In On DraftKings

Institutional investors have recently bought and sold shares of the company. Ascentis Independent Advisors acquired a new stake in shares of DraftKings in the 1st quarter worth $27,000. Basecamp Wealth Advisors LLC boosted 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 acquiring an additional 1,206 shares in the last quarter. CoreCap Advisors LLC boosted its holdings in shares of DraftKings by 336.5% in the second 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. Heritage Family Offices LLP acquired a new position in shares of DraftKings during the third quarter worth about $44,000. Finally, Mirae Asset Global Investments Co. Ltd. acquired a new position in shares of DraftKings during the third quarter worth about $48,000. 37.70% of the stock is owned by institutional investors and hedge funds.

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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