DraftKings Inc. (NASDAQ:DKNG) Given Average Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts maintain a moderately bullish view: Forty firms rate DraftKings a consensus “Moderate Buy,” including 29 buys and one strong buy, with an average 12-month price target of $34.11 versus the stock’s $25.51 opening price.
• Recent analyst actions were mixed but generally positive: Guggenheim and Wells Fargo lowered their price targets, while Raymond James upgraded the stock to “outperform” and Stephens initiated coverage with an “overweight” rating.
• Insiders sold shares while institutions continued accumulating: Insiders sold 97,596 shares worth about $2.76 million during the last quarter, while institutional investors own 37.70% of DraftKings and several firms increased their positions.

DraftKings Inc. (NASDAQ:DKNG - Get Free Report) has earned an average recommendation of "Moderate Buy" from the forty research firms that are covering the stock, Marketbeat Ratings reports. Two equities research analysts have rated the stock with a sell rating, eight have issued a hold rating, twenty-nine have given a buy rating and one has assigned a strong buy rating to the company. The average 12-month price objective among analysts that have covered the stock in the last year is $34.1097.

A number of analysts have commented on the company. Guggenheim reduced their price target on DraftKings from $35.00 to $33.00 and set a "buy" rating for the company in a research report on Monday. Raymond James Financial raised DraftKings from a "market perform" rating to an "outperform" rating in a research report on Friday, April 24th. Sanford C. Bernstein set a $27.00 price objective on DraftKings in a research note on Thursday, August 6th. Wells Fargo & Company reduced their target price on shares of DraftKings from $32.00 to $29.00 and set an "overweight" rating for the company in a report on Monday, July 20th. Finally, Stephens initiated coverage on shares of DraftKings in a research note on Friday, April 24th. They set an "overweight" rating on the stock.

Insider Buying and Selling

In other news, Director Woodrow Levin sold 34,234 shares of the firm's stock in a transaction on Monday, May 18th. The shares were sold at an average price of $25.71, for a total transaction of $880,156.14. Following the sale, the director directly owned 29,820 shares in the company, valued at $766,672.20. This trade represents a 53.45% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider R Stanton Dodge sold 62,500 shares of DraftKings stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $29.68, for a total transaction of $1,855,000.00. Following the transaction, the insider owned 556,258 shares in the company, valued at approximately $16,509,737.44. This trade represents a 10.10% 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. Over the last quarter, insiders sold 97,596 shares of company stock valued at $2,756,991. Company insiders own 47.18% of the company's stock.

Institutional Investors Weigh In On DraftKings

A number of institutional investors have recently bought and sold shares of DKNG. Integrated Wealth Concepts LLC boosted its stake in shares of DraftKings by 5.9% in the first quarter. Integrated Wealth Concepts LLC now owns 9,460 shares of the company's stock worth $314,000 after acquiring an additional 524 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in DraftKings by 1,141.0% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 44,044 shares of the company's stock valued at $1,463,000 after purchasing an additional 40,495 shares during the period. Empowered Funds LLC raised its stake in DraftKings by 18.0% during the 1st quarter. Empowered Funds LLC now owns 9,115 shares of the company's stock valued at $303,000 after purchasing an additional 1,391 shares during the period. Sivia Capital Partners LLC bought a new stake in DraftKings during the 2nd quarter valued at approximately $603,000. Finally, Daiwa Securities Group Inc. lifted its holdings in DraftKings by 2.2% in the 2nd quarter. Daiwa Securities Group Inc. now owns 44,102 shares of the company's stock worth $1,892,000 after purchasing an additional 968 shares in the last quarter. Hedge funds and other institutional investors own 37.70% of the company's stock.

DraftKings Price Performance

Shares of DraftKings stock opened at $25.51 on Thursday. The stock has a market cap of $12.66 billion, a P/E ratio of -67.13 and a beta of 1.66. The company has a debt-to-equity ratio of 3.03, a quick ratio of 1.02 and a current ratio of 1.02. The stock's fifty day moving average is $25.34 and its 200 day moving average is $24.77. DraftKings has a one year low of $20.46 and a one year high of $48.78.

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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