DraftKings Inc. (NASDAQ:DKNG) Stock Has Consensus Target Price of $32.98

Key Points

• Analyst sentiment is moderately bullish: 40 analysts give DraftKings a consensus “Moderate Buy” rating, with an average 12-month price target of $32.98 versus the reported share price of $21.22.
• Recent results were mixed: DraftKings reported quarterly EPS of $0.09, beating estimates of $0.02, but revenue of $1.44 billion fell short of the $1.51 billion consensus and declined 4.6% year over year.
• Ownership activity remains notable: Institutional investors own 37.70% of the stock, while insiders own 47.18%; a director recently sold shares under a pre-arranged Rule 10b5-1 trading plan.

Shares of DraftKings Inc. (NASDAQ:DKNG - Get Free Report) have been given an average recommendation of "Moderate Buy" by the forty analysts that are covering the company, Marketbeat.com reports. Three investment analysts have rated the stock with a sell rating, six have given a hold rating, thirty have given a buy rating and one has assigned a strong buy rating to the company. The average 12 month price target among brokerages that have issued ratings on the stock in the last year is $32.98.

A number of research analysts recently issued reports on the stock. JPMorgan Chase & Co. decreased their price objective on shares of DraftKings from $33.00 to $30.00 and set an "overweight" rating for the company in a report on Tuesday, October 20th. Wells Fargo & Company increased their target price on shares of DraftKings from $29.00 to $30.00 and gave the stock an "overweight" rating in a report on Monday, October 19th. TD Cowen lifted their target price on DraftKings from $30.00 to $35.00 and gave the stock a "buy" rating in a report on Friday, July 10th. Bank of America raised DraftKings from a "neutral" rating to a "buy" rating and set a $27.00 price target for the company in a research report on Monday, October 5th. Finally, Canaccord Genuity Group decreased their price objective on DraftKings from $44.00 to $40.00 and set a "buy" rating for the company in a report on Friday.

DraftKings Trading Up 1.5%

NASDAQ:DKNG opened at $21.22 on Tuesday. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 3.22. DraftKings has a 1-year low of $18.35 and a 1-year high of $36.98. The firm has a market capitalization of $10.53 billion, a price-to-earnings ratio of -55.84, a PEG ratio of 2.36 and a beta of 1.61. The business's 50-day moving average price is $22.30 and its two-hundred day moving average price is $24.72.

DraftKings (NASDAQ:DKNG - Get Free Report) last posted its earnings results 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 company had revenue of $1.44 billion during the quarter, compared to analyst estimates of $1.51 billion. DraftKings had a negative return on equity of 11.26% and a negative net margin of 2.68%. The company's revenue for the quarter was down 4.6% compared to the same quarter last year. During the same period in the previous year, the company earned $0.30 EPS. On average, equities analysts expect that DraftKings will post 0.36 earnings per share for the current year.

Insider Buying and Selling at DraftKings

In other news, Director Jocelyn Moore sold 10,759 shares of the company's stock in a transaction that occurred 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 sale, the director owned 1,881 shares in the company, valued at $45,238.05. This represents a 85.12% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 47.18% of the stock is owned by company insiders.

Hedge Funds Weigh In On DraftKings

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Renaissance Technologies LLC acquired a new stake in DraftKings in the first quarter valued at $17,660,000. Spruce House Investment Management LLC grew its position in shares of DraftKings by 129.6% in the 1st quarter. Spruce House Investment Management LLC now owns 9,650,000 shares of the company's stock valued at $208,633,000 after acquiring an additional 5,446,166 shares during the period. Janus Henderson Group PLC grew its position in shares of DraftKings by 9.3% in the 1st quarter. Janus Henderson Group PLC now owns 27,665,699 shares of the company's stock valued at $588,288,000 after acquiring an additional 2,351,790 shares during the period. Edgestream Partners L.P. acquired a new position in shares of DraftKings during the 1st quarter worth about $4,473,000. Finally, Entropy Technologies LP acquired a new position in shares of DraftKings during the 1st quarter worth about $2,669,000. 37.70% of the stock is owned by institutional investors.

About DraftKings

DraftKings Inc is a digital sports entertainment and gaming company that operates online and mobile platforms for sports betting, casino gaming and daily fantasy sports. Its offerings include the DraftKings Sportsbook, DraftKings Casino and daily fantasy contests covering a range of professional and collegiate sports.

The company also provides related entertainment and media content through DraftKings Network, along with free-to-play games, promotions and other interactive products designed to complement its sports and gaming platforms.

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