DraftKings (NASDAQ:DKNG) Earns Buy Rating from Needham & Company LLC

Key Points

• Needham & Company LLC reaffirmed its buy rating on DraftKings and set a $35 price target, implying about 37% upside from the current share price.
• Analyst sentiment remains broadly positive, with 27 Buy ratings, 8 Hold ratings, and 2 Sell ratings; the consensus rating is Moderate Buy with an average target of $34.76.
• DraftKings recently posted better-than-expected revenue of $1.65 billion but missed EPS estimates for the quarter, while insiders have also been notable sellers in recent months.

DraftKings (NASDAQ:DKNG - Get Free Report)'s stock had its "buy" rating reissued by investment analysts at Needham & Company LLC in a research note issued to investors on Monday,Benzinga reports. They presently have a $35.00 price target on the stock. Needham & Company LLC's target price points to a potential upside of 37.15% from the stock's current price.

A number of other equities research analysts also recently weighed in on DKNG. Northland Securities set a $24.00 price objective on DraftKings in a report on Tuesday, February 17th. Stephens initiated coverage on DraftKings in a report on Friday, April 24th. They set an "overweight" rating on the stock. Barclays reaffirmed an "overweight" rating and set a $35.00 price objective on shares of DraftKings in a report on Monday. BMO Capital Markets lifted their price objective on DraftKings from $42.00 to $50.00 and gave the company an "outperform" rating in a report on Tuesday, March 3rd. Finally, Wedbush initiated coverage on DraftKings in a report on Friday, April 24th. They set an "outperform" rating on the stock. Twenty-seven analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $34.76.

DraftKings Price Performance

DKNG stock opened at $25.52 on Monday. DraftKings has a twelve month low of $20.46 and a twelve month high of $48.78. The company has a market cap of $12.65 billion, a PE ratio of 425.33, a price-to-earnings-growth ratio of 1.20 and a beta of 1.67. The business's 50-day simple moving average is $23.56 and its 200 day simple moving average is $28.48. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 2.91.

DraftKings (NASDAQ:DKNG - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported $0.20 earnings per share for the quarter, missing analysts' consensus estimates of $0.22 by ($0.02). The firm had revenue of $1.65 billion for the quarter, compared to analyst estimates of $1.63 billion. DraftKings had a return on equity of 12.71% and a net margin of 0.93%.The firm's quarterly revenue was up 16.8% compared to the same quarter last year. During the same period last year, the business earned ($0.07) earnings per share. On average, research analysts anticipate that DraftKings will post 0.56 earnings per share for the current year.

Insider Activity

In related news, CAO Erik Bradbury sold 7,268 shares of the business's stock in a transaction that occurred on Thursday, February 19th. The shares were sold at an average price of $22.50, for a total value of $163,530.00. Following the completion of the transaction, the chief accounting officer owned 36,736 shares in the company, valued at $826,560. The trade was a 16.52% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Paul Liberman sold 484,417 shares of the business's stock in a transaction that occurred on Wednesday, March 11th. The stock was sold at an average price of $25.16, for a total transaction of $12,187,931.72. Following the completion of the transaction, the insider owned 213,597 shares of the company's stock, valued at $5,374,100.52. This trade represents a 69.40% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 496,718 shares of company stock worth $12,477,308. 47.18% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. raised its position in DraftKings by 3.1% in the 4th quarter. Vanguard Group Inc. now owns 44,758,204 shares of the company's stock worth $1,542,368,000 after purchasing an additional 1,354,457 shares during the last quarter. Janus Henderson Group PLC raised its position in DraftKings by 50.8% in the 4th quarter. Janus Henderson Group PLC now owns 25,313,909 shares of the company's stock worth $858,893,000 after purchasing an additional 8,524,923 shares during the last quarter. Viking Global Investors LP raised its position in DraftKings by 27.4% in the 4th quarter. Viking Global Investors LP now owns 19,119,912 shares of the company's stock worth $658,872,000 after purchasing an additional 4,116,561 shares during the last quarter. Capital World Investors raised its position in DraftKings by 181.4% in the 4th quarter. Capital World Investors now owns 18,626,429 shares of the company's stock worth $641,867,000 after purchasing an additional 12,008,357 shares during the last quarter. Finally, AQR Capital Management LLC raised its position in DraftKings by 41.0% in the 4th quarter. AQR Capital Management LLC now owns 16,474,009 shares of the company's stock worth $567,694,000 after purchasing an additional 4,788,337 shares during the last quarter. Institutional investors own 37.70% of the company's stock.

DraftKings Company Profile

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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