DraftKings Inc. (NASDAQ:DKNG) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• Analysts give DraftKings a consensus rating of Moderate Buy from 37 analysts (27 buy, 8 hold, 2 sell) with an average 12‑month price target of $34.84.
• Recent broker moves are mixed: Bank of America cut its target to $30 and rated the stock "neutral," Guggenheim initiated with a "buy," Jefferies cut to "hold," and Stifel trimmed its price objective to $40.
• Insider activity is notable—Director Harry Sloan bought 100,000 shares at $21.85 (a ~40% increase in his stake), while insiders have sold 496,718 shares in the last 90 days and currently own 47.18% of the company.

Shares of DraftKings Inc. (NASDAQ:DKNG - Get Free Report) have earned a consensus rating of "Moderate Buy" from the thirty-seven analysts that are currently covering the stock, Marketbeat.com reports. Two analysts have rated the stock with a sell recommendation, eight have given a hold recommendation and twenty-seven have given a buy recommendation to the company. The average twelve-month price target among analysts that have issued ratings on the stock in the last year is $34.8357.

DKNG has been the topic of a number of analyst reports. Bank of America lowered their target price on shares of DraftKings from $37.50 to $30.00 and set a "neutral" rating on the stock in a report on Friday, February 13th. Guggenheim began coverage on DraftKings in a report on Friday, April 24th. They issued a "buy" rating for the company. Jefferies Financial Group cut DraftKings from a "buy" rating to a "hold" rating in a research report on Friday, April 24th. Scotiabank upgraded DraftKings to an "outperform" rating in a research note on Friday, April 24th. Finally, Stifel Nicolaus dropped their price objective on DraftKings from $44.00 to $40.00 and set a "buy" rating on the stock in a report on Tuesday, February 17th.

DraftKings Price Performance

Shares of NASDAQ:DKNG opened at $23.57 on Tuesday. The firm has a market capitalization of $11.68 billion, a PE ratio of -589.25, a P/E/G ratio of 1.08 and a beta of 1.67. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 2.91. The company has a 50-day moving average price of $23.42 and a two-hundred day moving average price of $28.70. DraftKings has a twelve month low of $20.46 and a twelve month high of $48.78.

Insider Buying and Selling

In other news, Director Harry Sloan purchased 100,000 shares of the stock in a transaction dated Tuesday, February 17th. The shares were purchased at an average cost of $21.85 per share, with a total value of $2,185,000.00. Following the completion of the acquisition, the director owned 350,219 shares in the company, valued at $7,652,285.15. This represents a 39.96% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CAO Erik Bradbury sold 2,883 shares of the firm's stock in a transaction on Tuesday, March 3rd. The shares were sold at an average price of $24.56, for a total transaction of $70,806.48. Following the completion of the transaction, the chief accounting officer directly owned 38,168 shares of the company's stock, valued at approximately $937,406.08. The trade was a 7.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 496,718 shares of company stock valued at $12,477,308. Corporate insiders own 47.18% of the company's stock.

Institutional Trading of DraftKings

Institutional investors and hedge funds have recently made changes to their positions in the stock. IHT Wealth Management LLC increased its position in shares of DraftKings by 4.1% during the 2nd quarter. IHT Wealth Management LLC now owns 6,271 shares of the company's stock valued at $269,000 after purchasing an additional 248 shares during the last quarter. Orion Porfolio Solutions LLC lifted its stake in shares of DraftKings by 3.1% in the 3rd quarter. Orion Porfolio Solutions LLC now owns 10,608 shares of the company's stock valued at $397,000 after acquiring an additional 321 shares during the last quarter. Geneos Wealth Management Inc. lifted its stake in shares of DraftKings by 7.3% in the 3rd quarter. Geneos Wealth Management Inc. now owns 4,793 shares of the company's stock valued at $179,000 after acquiring an additional 328 shares during the last quarter. Huntleigh Advisors Inc. boosted its holdings in DraftKings by 0.8% during the 3rd quarter. Huntleigh Advisors Inc. now owns 43,630 shares of the company's stock valued at $1,632,000 after acquiring an additional 363 shares during the period. Finally, TD Private Client Wealth LLC grew its position in DraftKings by 45.6% during the 3rd quarter. TD Private Client Wealth LLC now owns 1,165 shares of the company's stock worth $44,000 after acquiring an additional 365 shares during the last quarter. Hedge funds and other institutional investors 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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