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

Key Points

• DraftKings Inc. has received a consensus rating of "Moderate Buy" from twenty-five brokerages, with one hold and twenty-four buy ratings, and an average target price of $55.12.
• The company's recent earnings report showed a 36.9% year-over-year revenue increase, with EPS at $0.30, exceeding analysts' expectations of $0.16.
• Insider trading activity includes significant sales, with R. Stanton Dodge selling over 105,000 shares, impacting their ownership by 17.43%.

Shares of DraftKings Inc. (NASDAQ:DKNG - Get Free Report) have been given a consensus rating of "Moderate Buy" by the twenty-five research firms that are presently covering the company, MarketBeat Ratings reports. One equities research analyst has rated the stock with a hold rating and twenty-four have given a buy rating to the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $55.1154.

A number of research analysts have weighed in on DKNG shares. Citigroup restated a "buy" rating on shares of DraftKings in a report on Friday, July 11th. Sanford C. Bernstein assumed coverage on DraftKings in a report on Wednesday, June 4th. They set an "outperform" rating and a $46.00 price target for the company. Benchmark boosted their price target on shares of DraftKings from $50.00 to $53.00 and gave the company a "buy" rating in a research note on Thursday, August 7th. Truist Financial boosted their price target on shares of DraftKings from $50.00 to $55.00 and gave the company a "buy" rating in a research note on Wednesday, July 16th. Finally, Stifel Nicolaus dropped their target price on DraftKings from $53.00 to $51.00 and set a "buy" rating for the company in a research report on Wednesday, July 16th.

DraftKings Price Performance

Shares of DraftKings stock traded up $0.39 during midday trading on Monday, hitting $43.84. The company had a trading volume of 9,803,435 shares, compared to its average volume of 7,421,264. The company has a fifty day simple moving average of $45.07 and a 200 day simple moving average of $39.68. DraftKings has a 12-month low of $29.64 and a 12-month high of $53.61. The company has a debt-to-equity ratio of 1.82, a quick ratio of 1.34 and a current ratio of 1.34.

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

Insider Buying and Selling at DraftKings

In other DraftKings news, insider Matthew Kalish sold 210,000 shares of DraftKings stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $42.90, for a total transaction of $9,009,000.00. Following the transaction, the insider owned 4,190,233 shares of the company's stock, valued at $179,760,995.70. The trade was a 4.77% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Jocelyn Moore sold 4,861 shares of DraftKings stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $43.21, for a total value of $210,043.81. Following the transaction, the director directly owned 1,461 shares in the company, valued at approximately $63,129.81. This trade represents a 76.89% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 658,331 shares of company stock worth $29,285,365. 47.08% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of DKNG. FNY Investment Advisers LLC acquired a new stake in DraftKings in the first quarter valued at $26,000. TD Private Client Wealth LLC lifted its position in shares of DraftKings by 54.4% in the second quarter. TD Private Client Wealth LLC now owns 800 shares of the company's stock valued at $34,000 after acquiring an additional 282 shares in the last quarter. Smallwood Wealth Investment Management LLC purchased a new position in DraftKings during the first quarter worth about $27,000. GPS Wealth Strategies Group LLC increased its position in DraftKings by 197.9% during the first 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 last quarter. Finally, Bank of Jackson Hole Trust acquired a new position in DraftKings in the first quarter valued at $31,000. Institutional investors and hedge funds 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.