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

Key Points

• DraftKings Inc. has received a consensus rating of “Moderate Buy” from 27 brokerages, with two analysts rating it as a hold and twenty-five as a buy.
• The stock's average one-year price target is currently $54.50, following various updates from research firms.
• In its most recent earnings report, DraftKings reported $1.51 billion in revenue, exceeding expectations, and posted earnings per share of $0.30, beating the consensus estimate by $0.14.

DraftKings Inc. (NASDAQ:DKNG - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the twenty-seven ratings firms that are currently covering the stock, Marketbeat Ratings reports. Two research analysts have rated the stock with a hold rating and twenty-five have issued a buy rating on the company. The average 1 year price target among brokerages that have updated their coverage on the stock in the last year is $54.50.

Several research firms have recently weighed in on DKNG. Mizuho decreased their target price on DraftKings from $59.00 to $58.00 and set an "outperform" rating on the stock in a research report on Monday, May 12th. Wall Street Zen upgraded DraftKings from a "hold" rating to a "buy" rating in a research report on Saturday, August 9th. Needham & Company LLC restated a "buy" rating and issued a $65.00 price target on shares of DraftKings in a research report on Friday, May 9th. Stifel Nicolaus reduced their price objective on DraftKings from $53.00 to $51.00 and set a "buy" rating on the stock in a research report on Wednesday, July 16th. Finally, Truist Financial boosted their price objective on DraftKings from $50.00 to $55.00 and gave the stock a "buy" rating in a research note on Wednesday, July 16th.

DraftKings Stock Performance

NASDAQ DKNG opened at $47.80 on Thursday. The company has a market cap of $42.52 billion, a PE ratio of -73.54, a price-to-earnings-growth ratio of 1.13 and a beta of 1.70. The stock's 50 day simple moving average is $43.80 and its 200-day simple moving average is $39.74. DraftKings has a 1-year low of $29.64 and a 1-year high of $53.61. The company has a debt-to-equity ratio of 1.82, a current ratio of 1.34 and a quick ratio of 1.34.

DraftKings (NASDAQ:DKNG - Get Free Report) last released its earnings results on Thursday, August 7th. The company reported $0.30 earnings per share for the quarter, beating the consensus estimate of $0.16 by $0.14. The business had revenue of $1.51 billion for the quarter, compared to the consensus estimate of $1.39 billion. DraftKings had a negative return on equity of 30.06% and a negative net margin of 5.63%.The business's quarterly revenue was up 36.9% compared to the same quarter last year. During the same quarter last year, the business posted $0.12 earnings per share. DraftKings has set its FY 2025 guidance at EPS. As a group, equities research analysts anticipate that DraftKings will post 0.64 EPS for the current fiscal year.

Insider Activity at DraftKings

In other DraftKings news, Director Ryan R. Moore sold 76,390 shares of the business's stock in a transaction on Thursday, August 21st. The stock was sold at an average price of $45.92, for a total transaction of $3,507,828.80. Following the transaction, the director owned 402 shares of the company's stock, valued at approximately $18,459.84. The trade was a 99.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Alan Wayne Ellingson sold 44,693 shares of the business's stock in a transaction on Tuesday, August 19th. The stock was sold at an average price of $44.90, for a total value of $2,006,715.70. Following the transaction, the chief financial officer directly owned 128,131 shares in the company, valued at $5,753,081.90. This trade represents a 25.86% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 767,021 shares of company stock valued at $32,338,320 in the last three months. Company insiders own 51.19% of the company's stock.

Institutional Trading of DraftKings

Institutional investors have recently made changes to their positions in the company. Raiffeisen Bank International AG purchased a new stake in shares of DraftKings during the 4th quarter valued at approximately $25,000. FNY Investment Advisers LLC purchased a new stake in shares of DraftKings during the 1st quarter valued at approximately $26,000. Smallwood Wealth Investment Management LLC purchased a new position in shares of DraftKings during the 1st quarter worth approximately $27,000. Point72 Asia Singapore Pte. Ltd. purchased a new position in shares of DraftKings during the 4th quarter worth approximately $28,000. Finally, GPS Wealth Strategies Group LLC boosted its position in shares of DraftKings by 197.9% during the 1st quarter. GPS Wealth Strategies Group LLC now owns 849 shares of the company's stock worth $28,000 after purchasing an additional 564 shares during the period. Hedge funds and other institutional investors own 37.70% of the company's stock.

About DraftKings

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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