DraftKings (NASDAQ:DKNG) Given New $54.00 Price Target at Mizuho

Key Points

• Mizuho has lowered its price target for DraftKings from $58.00 to $54.00, maintaining an "outperform" rating, indicating a potential upside of 61.87% from the last closing price.
• DraftKings recently reported a 36.9% year-over-year growth in revenue, generating $1.51 billion for the quarter, and exceeded EPS estimates with a reported $0.30.
• Insider trading activity has been significant, with directors selling over 658,000 shares in the past three months, while institutional investors and hedge funds own approximately 37.70% of the company's stock.

DraftKings (NASDAQ:DKNG - Get Free Report) had its price objective dropped by equities researchers at Mizuho from $58.00 to $54.00 in a note issued to investors on Tuesday. The brokerage presently has an "outperform" rating on the stock. Mizuho's price target indicates a potential upside of 61.87% from the company's previous close.

Several other brokerages also recently issued reports on DKNG. Jefferies Financial Group set a $52.00 price objective on DraftKings in a research report on Monday. Benchmark lowered their target price on DraftKings from $53.00 to $43.00 and set a "buy" rating for the company in a research note on Thursday, October 2nd. Deutsche Bank Aktiengesellschaft set a $47.00 price target on DraftKings and gave the company a "hold" rating in a research note on Friday, August 8th. Northland Securities reaffirmed an "under perform" rating and set a $33.00 price target (down previously from $53.00) on shares of DraftKings in a research note on Wednesday, October 1st. Finally, UBS Group cut their price target on DraftKings from $58.00 to $56.00 and set a "buy" rating on the stock in a research note on Wednesday, September 24th. Twenty-six research analysts have rated the stock with a Buy rating, one has issued a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $53.64.

DraftKings Price Performance

Shares of DKNG stock traded down $1.62 during trading hours on Tuesday, hitting $33.36. The company had a trading volume of 10,697,740 shares, compared to its average volume of 10,543,743. DraftKings has a 12 month low of $29.64 and a 12 month high of $53.61. The firm has a market capitalization of $16.56 billion, a price-to-earnings ratio of -51.26, a PEG ratio of 0.93 and a beta of 1.99. The firm's fifty day moving average is $44.06 and its 200 day moving average is $39.78. The company has a debt-to-equity ratio of 1.82, a quick ratio of 1.34 and a current ratio of 1.34.

DraftKings (NASDAQ:DKNG - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The company reported $0.30 EPS for the quarter, topping analysts' consensus estimates of $0.16 by $0.14. DraftKings had a negative return on equity of 30.06% and a negative net margin of 5.63%.The business had revenue of $1.51 billion for the quarter, compared to analyst estimates of $1.39 billion. During the same period in the prior year, the company earned $0.12 EPS. DraftKings's revenue for the quarter was up 36.9% on a year-over-year basis. DraftKings has set its FY 2025 guidance at EPS. On average, sell-side analysts predict that DraftKings will post 0.64 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Jocelyn Moore sold 4,861 shares of the business's stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $43.21, for a total value of $210,043.81. Following the completion of the transaction, the director directly owned 1,461 shares in the company, valued at approximately $63,129.81. The trade was a 76.89% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider R Stanton Dodge sold 105,554 shares of the business's stock in a transaction that occurred on Tuesday, August 5th. The shares were sold at an average price of $44.60, for a total value of $4,707,708.40. Following the completion of the transaction, the insider owned 500,000 shares of the company's stock, valued at $22,300,000. This represents a 17.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 658,331 shares of company stock worth $29,285,365 in the last three months. 51.19% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On DraftKings

A number of large investors have recently bought and sold shares of DKNG. Norges Bank acquired a new position in DraftKings during the 2nd quarter worth approximately $362,554,000. AQR Capital Management LLC boosted its position in DraftKings by 2,138.9% during the 1st quarter. AQR Capital Management LLC now owns 4,696,244 shares of the company's stock worth $155,962,000 after acquiring an additional 4,486,488 shares during the last quarter. Brown Advisory Inc. boosted its position in DraftKings by 53,272.1% during the 2nd quarter. Brown Advisory Inc. now owns 4,056,280 shares of the company's stock worth $173,974,000 after acquiring an additional 4,048,680 shares during the last quarter. Eminence Capital LP boosted its position in DraftKings by 195.2% during the 1st quarter. Eminence Capital LP now owns 5,178,083 shares of the company's stock worth $171,964,000 after acquiring an additional 3,423,909 shares during the last quarter. Finally, Nuveen LLC acquired a new position in DraftKings during the 1st quarter worth approximately $107,739,000. Institutional investors and hedge funds 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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