DraftKings Inc. (NASDAQ:DKNG) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• DraftKings has a consensus analyst rating of "Moderate Buy" from 39 research firms, with an average 12-month price target of about $34.32.
• The company’s latest quarterly results showed revenue of $1.65 billion, up 16.8% year over year, but EPS of $0.20 missed expectations by $0.02.
• Insider selling has been notable recently, including large sales by Paul Liberman and Jocelyn Moore, while institutional investors such as Vanguard and Janus Henderson increased their stakes.

Shares of DraftKings Inc. (NASDAQ:DKNG - Get Free Report) have received a consensus rating of "Moderate Buy" from the thirty-nine research firms that are covering the stock, Marketbeat.com reports. Two equities research analysts have rated the stock with a sell recommendation, nine have issued a hold recommendation, twenty-seven have given a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month target price among analysts that have issued ratings on the stock in the last year is $34.3241.

DKNG has been the topic of several analyst reports. Freedom Capital upgraded DraftKings to a "strong-buy" rating in a report on Wednesday, May 20th. Oppenheimer reduced their target price on DraftKings from $50.00 to $35.00 and set an "outperform" rating on the stock in a report on Tuesday, February 17th. Canaccord Genuity Group reduced their target price on DraftKings from $50.00 to $44.00 and set a "buy" rating on the stock in a report on Friday, February 13th. Citigroup lifted their target price on DraftKings from $29.00 to $30.00 and gave the company a "buy" rating in a report on Tuesday, May 12th. Finally, Mizuho lifted their target price on DraftKings from $44.00 to $45.00 and gave the company an "outperform" rating in a report on Tuesday, May 12th.

DraftKings Price Performance

DKNG stock opened at $24.49 on Friday. DraftKings has a 52-week low of $20.46 and a 52-week high of $48.78. The stock's fifty day simple moving average is $23.61 and its 200-day simple moving average is $27.78. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 3.03. The stock has a market capitalization of $12.15 billion, a price-to-earnings ratio of 408.17 and a beta of 1.67.

DraftKings (NASDAQ:DKNG - Get Free Report) last posted its quarterly earnings data on Friday, May 8th. The company reported $0.20 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.22 by ($0.02). DraftKings had a return on equity of 13.51% and a net margin of 0.93%.The business had revenue of $1.65 billion for the quarter, compared to analyst estimates of $1.63 billion. During the same quarter last year, the business earned ($0.07) EPS. DraftKings's revenue for the quarter was up 16.8% compared to the same quarter last year. Equities research analysts expect that DraftKings will post 0.6 EPS for the current year.

Insider Transactions at DraftKings

In related news, insider Paul Liberman sold 484,417 shares of DraftKings stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $25.16, for a total value of $12,187,931.72. Following the transaction, the insider owned 213,597 shares in the company, valued at approximately $5,374,100.52. This trade represents a 69.40% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Jocelyn Moore sold 2,150 shares of DraftKings stock in a transaction on Friday, March 13th. The shares were sold at an average price of $25.60, for a total value of $55,040.00. Following the completion of the transaction, the director owned 1,406 shares in the company, valued at $35,993.60. The trade was a 60.46% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 524,546 shares of company stock worth $13,215,769 over the last ninety days. 47.18% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its holdings in DraftKings by 3.1% in the fourth quarter. Vanguard Group Inc. now owns 44,758,204 shares of the company's stock valued at $1,542,368,000 after acquiring an additional 1,354,457 shares during the last quarter. Janus Henderson Group PLC boosted its holdings in DraftKings by 9.3% in the first 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 last quarter. Viking Global Investors LP lifted its stake in shares of DraftKings by 27.4% during the fourth quarter. Viking Global Investors LP now owns 19,119,912 shares of the company's stock worth $658,872,000 after purchasing an additional 4,116,561 shares in the last quarter. Capital World Investors lifted its stake in shares of DraftKings by 181.4% during the fourth quarter. Capital World Investors now owns 18,626,429 shares of the company's stock worth $641,867,000 after purchasing an additional 12,008,357 shares in the last quarter. Finally, AQR Capital Management LLC lifted its stake in shares of DraftKings by 41.0% during the fourth quarter. AQR Capital Management LLC now owns 16,474,009 shares of the company's stock worth $567,694,000 after purchasing an additional 4,788,337 shares in the last quarter. Institutional investors and hedge funds own 37.70% of the company's stock.

About DraftKings

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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