DraftKings (NASDAQ:DKNG) Given New $33.00 Price Target at JPMorgan Chase & Co.

Key Points

• JPMorgan lowered DraftKings’ price target from $34 to $33 while maintaining an “overweight” rating, implying 36.67% potential upside from the $24.14 share price.
• Analyst sentiment remains positive overall: DraftKings has a “Moderate Buy” consensus rating and an average price target of $34.05, with targets ranging from $29 to $35 among recent firms.
• DraftKings reported quarterly revenue of $1.65 billion, ahead of estimates, though earnings per share missed expectations; the company remains unprofitable with a negative net margin and return on equity.

DraftKings (NASDAQ:DKNG - Get Free Report) had its price target reduced by stock analysts at JPMorgan Chase & Co. from $34.00 to $33.00 in a report issued on Monday,Benzinga reports. The brokerage currently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s price objective would suggest a potential upside of 36.67% from the company's current price.

DKNG has been the subject of several other reports. Barclays dropped their target price on shares of DraftKings from $35.00 to $34.00 and set an "overweight" rating for the company in a research report on Monday. Truist Financial set a $29.00 price objective on shares of DraftKings in a report on Monday. Wedbush began coverage on DraftKings in a research report on Friday, April 24th. They set an "outperform" rating on the stock. New Street Research set a $29.00 target price on DraftKings in a research report on Monday, June 1st. Finally, TD Cowen raised their target price on DraftKings from $30.00 to $35.00 and gave the company a "buy" rating in a research note on Friday, July 10th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, DraftKings presently has an average rating of "Moderate Buy" and a consensus price target of $34.05.

DraftKings Price Performance

Shares of DraftKings stock traded up $0.12 during trading on Monday, hitting $24.14. 12,635,444 shares of the stock traded hands, compared to its average volume of 13,937,329. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 3.03. The stock has a market cap of $11.98 billion, a price-to-earnings ratio of -64.08 and a beta of 1.66. The firm's fifty day moving average is $25.37 and its 200-day moving average is $24.91. DraftKings has a 52 week low of $20.46 and a 52 week high of $48.78.

DraftKings (NASDAQ:DKNG - Get Free Report) last released its 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). The firm had revenue of $1.65 billion during the quarter, compared to the consensus estimate of $1.63 billion. DraftKings had a negative return on equity of 10.88% and a negative net margin of 2.68%.The business's quarterly revenue was up 16.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.07) EPS. Research analysts expect that DraftKings will post 0.54 EPS for the current fiscal year.

Insiders Place Their Bets

In other DraftKings news, insider R Stanton Dodge sold 62,500 shares of the business's stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $29.68, for a total value of $1,855,000.00. Following the sale, the insider directly owned 556,258 shares of the company's stock, valued at approximately $16,509,737.44. The trade was a 10.10% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Woodrow Levin sold 34,234 shares of the firm's stock in a transaction on Monday, May 18th. The shares were sold at an average price of $25.71, for a total value of $880,156.14. Following the transaction, the director owned 29,820 shares of the company's stock, valued at $766,672.20. The trade was a 53.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 97,596 shares of company stock valued at $2,756,991 in the last quarter. 47.18% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Ascentis Independent Advisors purchased a new position in DraftKings in the 1st quarter worth approximately $27,000. Basecamp Wealth Advisors LLC boosted its stake in DraftKings by 3,547.1% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 1,240 shares of the company's stock valued at $27,000 after purchasing an additional 1,206 shares during the last quarter. CoreCap Advisors LLC increased its holdings in shares of DraftKings by 336.5% in the 2nd quarter. CoreCap Advisors LLC now owns 1,148 shares of the company's stock worth $29,000 after purchasing an additional 885 shares in the last quarter. Montag A & Associates Inc. increased its holdings in shares of DraftKings by 82.5% in the 4th quarter. Montag A & Associates Inc. now owns 1,106 shares of the company's stock worth $38,000 after purchasing an additional 500 shares in the last quarter. Finally, SHP Wealth Management purchased a new position in shares of DraftKings in the fourth quarter worth $42,000. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source