DraftKings Inc. (NASDAQ:DKNG) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts broadly favor DraftKings: Forty-one firms give the stock an average “Moderate Buy” rating, including 30 buys and one strong buy. The average 12-month price target is $34.36, above the reported share price of $24.01.
• DraftKings exceeded quarterly earnings expectations, reporting $0.09 per share versus the $0.02 consensus estimate, but revenue of $1.44 billion missed forecasts and declined 4.6% year over year. The company remains unprofitable, with a negative net margin and return on equity.
• Insiders recently sold shares: an insider sold $1.86 million worth of stock, while a director sold $258,754 under pre-arranged trading plans. Insiders own 47.18% of DraftKings, compared with 37.70% held by institutional investors.

DraftKings Inc. (NASDAQ:DKNG - Get Free Report) has been assigned an average rating of "Moderate Buy" from the forty-one ratings firms that are covering the company, Marketbeat Ratings reports. Two research analysts have rated the stock with a sell rating, eight have issued a hold rating, thirty have given a buy rating and one has given a strong buy rating to the company. The average 12 month price target among brokers that have issued a report on the stock in the last year is $34.3563.

Several equities analysts have commented on the stock. New Street Research set a $29.00 target price on shares of DraftKings in a research note on Monday, June 1st. Wells Fargo & Company reduced their price target on shares of DraftKings from $32.00 to $29.00 and set an "overweight" rating for the company in a research note on Monday, July 20th. Wolfe Research started coverage on shares of DraftKings in a report on Wednesday. They issued an "outperform" rating and a $40.00 price objective for the company. Needham & Company LLC reiterated a "buy" rating and set a $35.00 price objective on shares of DraftKings in a research note on Monday, May 11th. Finally, Stifel Nicolaus dropped their target price on DraftKings from $40.00 to $38.00 and set a "buy" rating on the stock in a report on Wednesday, July 22nd.

DraftKings Stock Performance

NASDAQ:DKNG opened at $24.01 on Monday. DraftKings has a 1 year low of $20.46 and a 1 year high of $48.78. The stock has a market cap of $11.92 billion, a price-to-earnings ratio of -63.18, a PEG ratio of 1.96 and a beta of 1.63. The business has a fifty day moving average of $24.79 and a 200-day moving average of $24.50. The company has a debt-to-equity ratio of 3.22, a quick ratio of 1.02 and a current ratio of 1.02.

DraftKings (NASDAQ:DKNG - Get Free Report) last issued its quarterly earnings data on Friday, August 7th. The company reported $0.09 earnings per share for the quarter, beating analysts' consensus estimates of $0.02 by $0.07. The business had revenue of $1.44 billion for the quarter, compared to analysts' expectations of $1.51 billion. DraftKings had a negative net margin of 2.68% and a negative return on equity of 11.26%. The company's revenue was down 4.6% on a year-over-year basis. During the same period in the previous year, the business earned $0.30 earnings per share. Equities analysts predict that DraftKings will post 0.49 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Robert Dodge sold 62,500 shares of the business's stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $29.68, for a total value of $1,855,000.00. Following the sale, the insider owned 556,258 shares of the company's stock, valued at approximately $16,509,737.44. The trade was a 10.10% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Jocelyn Moore sold 10,759 shares of the company's stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $24.05, for a total value of $258,753.95. Following the completion of the sale, the director owned 1,881 shares of the company's stock, valued at approximately $45,238.05. This trade represents a 85.12% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 47.18% of the company's stock.

Institutional Investors Weigh In On DraftKings

Hedge funds and other institutional investors have recently bought and sold shares of the business. Ascentis Independent Advisors bought a new position in shares of DraftKings during the 1st quarter valued at about $27,000. Basecamp Wealth Advisors LLC raised its holdings in shares of DraftKings by 3,547.1% in the 1st quarter. Basecamp Wealth Advisors LLC now owns 1,240 shares of the company's stock worth $27,000 after purchasing an additional 1,206 shares in the last quarter. CoreCap Advisors LLC raised its holdings in shares of DraftKings by 336.5% in the 2nd quarter. CoreCap Advisors LLC now owns 1,148 shares of the company's stock worth $29,000 after purchasing an additional 885 shares in the last quarter. SHP Wealth Management acquired a new stake in DraftKings during the fourth quarter valued at approximately $42,000. Finally, Root Financial Partners LLC lifted its stake in DraftKings by 208.0% during the first quarter. Root Financial Partners LLC now owns 2,775 shares of the company's stock valued at $60,000 after purchasing an additional 1,874 shares during the last quarter. 37.70% of the stock is currently owned by institutional investors.

DraftKings Company Profile

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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