DraftKings (NASDAQ:DKNG) CAO Erik Bradbury Sells 862 Shares

Key Points

• DraftKings CAO Erik Bradbury sold 862 shares on May 20 at an average price of $25.33, worth about $21,834. The sale was made under a pre-arranged Rule 10b5-1 plan, and his ownership fell by 2.21% to 38,168 shares.
• DraftKings recently missed earnings estimates, posting EPS of $0.20 versus the $0.22 consensus, though revenue came in slightly above expectations at $1.65 billion and rose 16.8% year over year.
• Analyst sentiment remains mixed but generally constructive, with a MarketBeat consensus of “Moderate Buy” and an average price target of $34.32, implying notable upside from recent trading levels.

DraftKings Inc. (NASDAQ:DKNG - Get Free Report) CAO Erik Bradbury sold 862 shares of DraftKings stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $25.33, for a total value of $21,834.46. Following the sale, the chief accounting officer owned 38,168 shares in the company, valued at $966,795.44. This represents a 2.21% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Erik Bradbury also recently made the following trade(s):

• On Tuesday, March 3rd, Erik Bradbury sold 2,883 shares of DraftKings stock. The stock was sold at an average price of $24.56, for a total value of $70,806.48.

DraftKings Stock Performance

Shares of NASDAQ DKNG traded down $0.28 during trading on Friday, reaching $25.12. The stock had a trading volume of 9,595,951 shares, compared to its average volume of 14,240,026. DraftKings Inc. has a one year low of $20.46 and a one year high of $48.78. 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 has a market cap of $12.46 billion, a PE ratio of 418.67 and a beta of 1.67. The firm's 50 day moving average price is $23.69 and its two-hundred day moving average price is $27.96.

DraftKings (NASDAQ:DKNG - Get Free Report) last issued its quarterly earnings results on Friday, May 8th. The company reported $0.20 earnings per share for the quarter, missing analysts' consensus estimates of $0.22 by ($0.02). DraftKings had a net margin of 0.93% and a return on equity of 13.51%. The firm had revenue of $1.65 billion during the quarter, compared to the consensus estimate of $1.63 billion. During the same quarter last year, the firm posted ($0.07) earnings per share. DraftKings's revenue was up 16.8% compared to the same quarter last year. On average, research analysts forecast that DraftKings Inc. will post 0.62 earnings per share for the current fiscal year.

Key Stories Impacting DraftKings

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: Freedom Capital Markets initiated coverage on DraftKings with a buy/strong-buy stance, while another note highlighted upside tied to DraftKings’ opportunity in prediction markets. Freedom Capital Markets initiates coverage of DraftKings (DKNG) with buy recommendation
• Positive Sentiment: Wall Street sentiment also looks supportive, with Zacks noting that analysts’ average price target still implies roughly 34% upside for DraftKings. Can DraftKings (DKNG) Climb 33.99% to Reach the Level Wall Street Analysts Expect?
• Positive Sentiment: DraftKings and FanDuel backing a $9.3 million Alabama political push may be viewed as a strategic effort to shape a more favorable operating environment for sports betting expansion. DraftKings, FanDuel Back $9.3 Million Alabama Political Push
• Neutral Sentiment: DraftKings is also drawing attention as a trending stock, reflecting elevated investor interest but not a specific new catalyst. DraftKings Inc. (DKNG) Is a Trending Stock: Facts to Know Before Betting on It
• Neutral Sentiment: Zacks Research also moved DraftKings from strong sell to hold, which is an improvement but still not an outright bullish call. DraftKings was upgraded by Zacks Research from strong sell to hold
• Negative Sentiment: Some coverage pointed to DraftKings sliding on cautious revenue guidance, reminding investors that growth expectations remain a concern. DraftKings (DKNG) Slid on Cautious Revenue Guidance
• Negative Sentiment: An insider-selling report may also weigh on sentiment, as a DraftKings director sold about $880,000 in stock. Insider Selling: DraftKings NASDAQ: DKNG Director Sells $880,156.14 in Stock

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the company. Argus downgraded DraftKings from a "buy" rating to a "hold" rating in a report on Tuesday, March 17th. Barclays boosted their price target on DraftKings from $33.00 to $35.00 and gave the company an "overweight" rating in a report on Monday, May 11th. Bank of America lowered their price target on DraftKings from $37.50 to $30.00 and set a "neutral" rating for the company in a report on Friday, February 13th. JPMorgan Chase & Co. reduced their price objective on DraftKings from $32.00 to $31.00 and set an "overweight" rating for the company in a research report on Thursday, April 16th. Finally, Guggenheim reduced their price objective on DraftKings from $37.00 to $35.00 and set a "buy" rating for the company in a research report on Monday, May 11th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, DraftKings has an average rating of "Moderate Buy" and a consensus price target of $34.32.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its position in DraftKings by 3.1% during the 4th quarter. Vanguard Group Inc. now owns 44,758,204 shares of the company's stock worth $1,542,368,000 after acquiring an additional 1,354,457 shares during the period. Citigroup Inc. lifted its holdings in shares of DraftKings by 40.6% in the third quarter. Citigroup Inc. now owns 1,939,764 shares of the company's stock valued at $72,547,000 after buying an additional 560,139 shares during the period. Bedell Frazier Investment Counselling LLC acquired a new stake in shares of DraftKings in the third quarter valued at $4,492,000. Waycross Partners LLC acquired a new stake in shares of DraftKings in the fourth quarter valued at $2,584,000. Finally, DAVENPORT & Co LLC lifted its holdings in shares of DraftKings by 11.2% in the fourth quarter. DAVENPORT & Co LLC now owns 3,456,735 shares of the company's stock valued at $119,602,000 after buying an additional 348,333 shares during the period. Institutional investors and hedge funds 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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