Barclays Issues Positive Forecast for DraftKings (NASDAQ:DKNG) Stock Price

Key Points

• Barclays has raised its price target for DraftKings stock from $51.00 to $54.00, indicating a potential upside of 25.32% from its previous close and maintaining an "overweight" rating on the stock.
• DraftKings recently reported a quarterly earnings per share of $0.30, exceeding analysts' expectations, and revenue of $1.51 billion, which is a 36.9% increase year-over-year.
• Insider trading activity includes significant sales from executives, with over 642,181 shares sold in the last 90 days, highlighting a potential shift in insider confidence regarding future stock performance.

DraftKings (NASDAQ:DKNG - Get Free Report) had its target price upped by Barclays from $51.00 to $54.00 in a report issued on Friday,Benzinga reports. The brokerage presently has an "overweight" rating on the stock. Barclays's target price points to a potential upside of 25.32% from the company's previous close.

A number of other analysts have also weighed in on the stock. Northland Securities set a $50.00 price target on shares of DraftKings in a report on Friday, April 25th. Citigroup reissued a "buy" rating on shares of DraftKings in a report on Friday, July 11th. Cowen reissued a "buy" rating on shares of DraftKings in a report on Thursday, April 24th. Benchmark raised their price objective on shares of DraftKings from $50.00 to $53.00 and gave the company a "buy" rating in a research note on Thursday. Finally, BTIG Research reduced their price objective on shares of DraftKings from $64.00 to $52.00 and set a "buy" rating on the stock in a research note on Tuesday, April 22nd. One investment analyst has rated the stock with a hold rating and twenty-five have issued a buy rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $54.59.

DraftKings Stock Performance

NASDAQ DKNG opened at $43.09 on Friday. The firm has a market cap of $38.32 billion, a price-to-earnings ratio of -67.73, a PEG ratio of 1.53 and a beta of 1.70. The company has a 50 day moving average of $41.34 and a 200-day moving average of $39.42. The company has a current ratio of 1.20, a quick ratio of 1.20 and a debt-to-equity ratio of 2.11. DraftKings has a 1-year low of $29.29 and a 1-year high of $53.61.

DraftKings (NASDAQ:DKNG - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The company reported $0.30 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.14. The company had revenue of $1.51 billion during the quarter, compared to analyst estimates of $1.39 billion. DraftKings had a negative net margin of 5.63% and a negative return on equity of 30.23%. The company's revenue was up 36.9% on a year-over-year basis. During the same quarter last year, the business posted $0.12 earnings per share. On average, equities analysts forecast that DraftKings will post 0.64 earnings per share for the current fiscal year.

Insider Activity at DraftKings

In other DraftKings news, insider Matthew Kalish sold 210,000 shares of DraftKings stock in a transaction on Tuesday, May 13th. The shares were sold at an average price of $37.83, for a total value of $7,944,300.00. Following the sale, the insider directly owned 4,155,130 shares in the company, valued at approximately $157,188,567.90. The trade was a 4.81% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider R Stanton Dodge sold 105,554 shares of DraftKings stock in a transaction on Tuesday, August 5th. The shares were sold at an average price of $44.60, for a total transaction of $4,707,708.40. Following the completion of the sale, the insider owned 500,000 shares in the company, valued at $22,300,000. The trade was a 17.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 642,181 shares of company stock valued at $25,550,925. 51.19% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of DKNG. Forsta AP Fonden boosted its holdings in shares of DraftKings by 1.5% during the 2nd quarter. Forsta AP Fonden now owns 92,400 shares of the company's stock worth $3,963,000 after buying an additional 1,400 shares during the period. SBI Securities Co. Ltd. boosted its holdings in shares of DraftKings by 8.1% during the 2nd quarter. SBI Securities Co. Ltd. now owns 8,947 shares of the company's stock worth $384,000 after buying an additional 674 shares during the period. IMA Advisory Services Inc. boosted its holdings in shares of DraftKings by 3.3% during the 2nd quarter. IMA Advisory Services Inc. now owns 30,721 shares of the company's stock worth $1,318,000 after buying an additional 990 shares during the period. Hodges Capital Management Inc. boosted its holdings in shares of DraftKings by 5.4% during the 2nd quarter. Hodges Capital Management Inc. now owns 569,764 shares of the company's stock worth $24,437,000 after buying an additional 29,122 shares during the period. Finally, First Dallas Securities Inc. boosted its holdings in shares of DraftKings by 7.4% during the 2nd quarter. First Dallas Securities Inc. now owns 99,911 shares of the company's stock worth $4,285,000 after buying an additional 6,850 shares during the period. 37.70% of the stock is currently owned by institutional investors and hedge funds.

DraftKings Company Profile

DraftKings Inc operates as a digital sports entertainment and gaming company in the United States and internationally. It provides online sports betting and casino, daily fantasy sports, media, and other consumer products, as well as retails sportsbooks. The company also engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators.

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