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

Key Points

• DraftKings Inc. has received a consensus recommendation of "Moderate Buy" from 31 research firms, with 27 firms issuing buy ratings and only 3 suggesting a sell.
• The average target price for DraftKings shares among brokers is $53.00, despite several price adjustments downward by various analysts in recent reports.
• DraftKings reported a net revenue increase of 36.9% year-over-year, achieving $1.51 billion for the last quarter, surpassing expectations with an earnings per share of $0.30.

Shares of DraftKings Inc. (NASDAQ:DKNG - Get Free Report) have been assigned a consensus recommendation of "Moderate Buy" from the thirty-one research firms that are currently covering the company, MarketBeat reports. Three investment analysts have rated the stock with a sell recommendation, one has assigned a hold recommendation and twenty-seven have given a buy recommendation to the company. The average 1 year target price among brokerages that have issued ratings on the stock in the last year is $53.00.

Several research analysts have recently issued reports on the stock. Weiss Ratings restated a "sell (d-)" rating on shares of DraftKings in a report on Wednesday, October 8th. Mizuho dropped their price objective on shares of DraftKings from $58.00 to $54.00 and set an "outperform" rating on the stock in a report on Tuesday, October 7th. JMP Securities dropped their price objective on shares of DraftKings from $54.00 to $51.00 and set a "market outperform" rating on the stock in a report on Wednesday, October 1st. BTIG Research dropped their price objective on shares of DraftKings from $53.00 to $45.00 and set a "buy" rating on the stock in a report on Thursday, October 2nd. Finally, Northland Securities set a $30.00 price objective on shares of DraftKings in a report on Monday.

DraftKings Price Performance

Shares of NASDAQ:DKNG opened at $35.19 on Friday. The business has a 50 day moving average price of $42.36 and a 200 day moving average price of $39.58. DraftKings has a twelve month low of $29.64 and a twelve month high of $53.61. The company has a market cap of $17.47 billion, a price-to-earnings ratio of -54.14, a PEG ratio of 0.89 and a beta of 1.99. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 1.82.

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

Insiders Place Their Bets

In related news, Director Jocelyn Moore sold 4,861 shares of the company's stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $43.21, for a total value of $210,043.81. Following the sale, the director owned 1,461 shares of the company's stock, valued at $63,129.81. The trade was a 76.89% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Matthew Kalish sold 210,000 shares of the company's stock in a transaction dated Tuesday, August 12th. The shares were sold at an average price of $42.90, for a total transaction of $9,009,000.00. Following the completion of the sale, the insider directly owned 4,190,233 shares in the company, valued at approximately $179,760,995.70. The trade was a 4.77% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 552,777 shares of company stock valued at $24,690,599 over the last 90 days. Company insiders own 51.19% of the company's stock.

Institutional Trading of DraftKings

A number of institutional investors and hedge funds have recently added to or reduced their stakes in DKNG. Smallwood Wealth Investment Management LLC bought a new stake in DraftKings in the first quarter valued at about $27,000. Bank of Jackson Hole Trust bought a new stake in DraftKings in the first quarter valued at about $31,000. TD Private Client Wealth LLC increased its stake in 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 during the period. Summit Securities Group LLC boosted its position in DraftKings by 349.1% in the first quarter. Summit Securities Group LLC now owns 1,042 shares of the company's stock valued at $35,000 after buying an additional 810 shares in the last quarter. Finally, Atlantic Union Bankshares Corp acquired a new position in DraftKings in the second quarter valued at about $45,000. Institutional investors own 37.70% of the company's stock.

DraftKings Company Profile

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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