DraftKings (NASDAQ:DKNG) Given New $56.00 Price Target at UBS Group

Key Points

• UBS Group has lowered its price target for DraftKings from $58.00 to $56.00, maintaining a "buy" rating, which suggests a potential upside of 29.42% from the current stock price.
• The company's shares opened at $43.27, with a market capitalization of $21.48 billion and have demonstrated a 36.9% revenue increase year-over-year.
• Insider trading activity included CFO Alan Wayne Ellingson selling 44,693 shares and another insider, Matthew Kalish, selling 210,000 shares, indicating significant movements in insider ownership during recent transactions.

DraftKings (NASDAQ:DKNG - Get Free Report) had its price target lowered by UBS Group from $58.00 to $56.00 in a report released on Wednesday,Benzinga reports. The firm presently has a "buy" rating on the stock. UBS Group's price target suggests a potential upside of 29.42% from the stock's current price.

Several other research firms have also issued reports on DKNG. Stifel Nicolaus dropped their price objective on DraftKings from $53.00 to $51.00 and set a "buy" rating on the stock in a research note on Wednesday, July 16th. Jefferies Financial Group set a $54.00 price objective on DraftKings in a research report on Thursday, August 21st. Benchmark raised their price objective on DraftKings from $50.00 to $53.00 and gave the company a "buy" rating in a research report on Thursday, August 7th. Barclays reaffirmed an "overweight" rating and issued a $54.00 price objective (up from $51.00) on shares of DraftKings in a research report on Friday, August 8th. Finally, Wall Street Zen raised DraftKings from a "hold" rating to a "buy" rating in a research report on Saturday. Twenty-five equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $55.15.

DraftKings Price Performance

Shares of NASDAQ DKNG opened at $43.27 on Wednesday. The stock has a market capitalization of $21.48 billion, a price-to-earnings ratio of -66.57, a PEG ratio of 1.04 and a beta of 1.73. The business has a 50-day moving average of $45.06 and a 200-day moving average of $39.73. The company has a debt-to-equity ratio of 1.82, a current ratio of 1.34 and a quick ratio of 1.34. DraftKings has a fifty-two week low of $29.64 and a fifty-two week high of $53.61.

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

Insider Activity

In other news, CFO Alan Wayne Ellingson sold 44,693 shares of DraftKings stock in a transaction that occurred on Tuesday, August 19th. The shares were sold at an average price of $44.90, for a total value of $2,006,715.70. Following the completion of the sale, the chief financial officer directly owned 128,131 shares in the company, valued at approximately $5,753,081.90. The trade was a 25.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Matthew Kalish sold 210,000 shares of DraftKings stock in a transaction that occurred on 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 owned 4,190,233 shares of the company's stock, valued at approximately $179,760,995.70. The trade was a 4.77% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 658,331 shares of company stock valued at $29,285,365. Company insiders own 47.08% of the company's stock.

Institutional Investors Weigh In On DraftKings

A number of hedge funds and other institutional investors have recently made changes to their positions in DKNG. Toronto Dominion Bank raised its position in shares of DraftKings by 44.6% in the fourth quarter. Toronto Dominion Bank now owns 99,784 shares of the company's stock valued at $3,712,000 after buying an additional 30,779 shares in the last quarter. Mackenzie Financial Corp raised its position in shares of DraftKings by 2,423.0% in the fourth quarter. Mackenzie Financial Corp now owns 321,456 shares of the company's stock valued at $11,958,000 after buying an additional 308,715 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH bought a new position in DraftKings in the fourth quarter valued at approximately $1,728,000. Total Wealth Planning & Management Inc. bought a new position in DraftKings in the fourth quarter valued at approximately $243,000. Finally, Siemens Fonds Invest GmbH bought a new position in DraftKings in the fourth quarter valued at approximately $665,000. 37.70% of the stock is currently owned by institutional investors and hedge funds.

About DraftKings

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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