DraftKings (NASDAQ:DKNG) Given Sell (D-) Rating at Weiss Ratings

Key Points

• DraftKings received a "sell (D-)" rating from analysts at Weiss Ratings, highlighting concerns about the company's performance.
• Oppenheimer and other analysts have revised their target prices for DraftKings, with the average target price currently set at $52.83.
• DraftKings reported a revenue increase of 36.9% year-over-year in its latest quarterly results, despite having a negative net margin.

DraftKings (NASDAQ:DKNG - Get Free Report)'s stock had its "sell (d-)" rating reiterated by analysts at Weiss Ratings in a report issued on Friday,Weiss Ratings reports.

Several other equities research analysts have also issued reports on DKNG. Oppenheimer lowered their target price on shares of DraftKings from $60.00 to $55.00 and set an "outperform" rating for the company in a report on Wednesday, October 1st. Morgan Stanley restated an "overweight" rating and issued a $52.00 target price (up previously from $51.00) on shares of DraftKings in a report on Friday, July 11th. Berenberg Bank set a $43.00 target price on shares of DraftKings and gave the stock a "buy" rating in a report on Thursday, October 9th. BTIG Research lowered their target price on shares of DraftKings from $53.00 to $45.00 and set a "buy" rating for the company in a report on Thursday, October 2nd. Finally, Stifel Nicolaus lowered their target price on shares of DraftKings from $53.00 to $51.00 and set a "buy" rating for the company in a report on Wednesday, July 16th. Twenty-seven 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 MarketBeat.com, DraftKings has an average rating of "Moderate Buy" and an average target price of $52.83.

DraftKings Price Performance

DKNG stock opened at $33.00 on Friday. DraftKings has a 52 week low of $29.64 and a 52 week high of $53.61. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 1.82. The company has a fifty day simple moving average of $41.22 and a two-hundred day simple moving average of $39.63. The firm has a market capitalization of $16.38 billion, a P/E ratio of -50.77, a price-to-earnings-growth ratio of 0.87 and a beta of 1.99.

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

Insider Activity at DraftKings

In related news, insider Matthew Kalish sold 210,000 shares of DraftKings stock in a transaction dated 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 in the company, valued at $179,760,995.70. This trade represents a 4.77% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider R Stanton Dodge sold 52,777 shares of the business's stock in a transaction dated Friday, October 17th. The shares were sold at an average price of $34.57, for a total transaction of $1,824,500.89. Following the completion of the sale, the insider owned 500,000 shares of the company's stock, valued at approximately $17,285,000. This represents a 9.55% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 605,554 shares of company stock worth $26,515,100 over the last ninety days. 51.19% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On DraftKings

Several large investors have recently modified their holdings of DKNG. Smallwood Wealth Investment Management LLC bought a new stake in shares of DraftKings in the 1st quarter valued at about $27,000. Bank of Jackson Hole Trust bought a new stake in shares of DraftKings in the 1st quarter valued at about $31,000. TD Private Client Wealth LLC raised its holdings in shares of DraftKings by 54.4% in the 2nd quarter. TD Private Client Wealth LLC now owns 800 shares of the company's stock valued at $34,000 after purchasing an additional 282 shares in the last quarter. Summit Securities Group LLC raised its holdings in shares of DraftKings by 349.1% in the 1st quarter. Summit Securities Group LLC now owns 1,042 shares of the company's stock valued at $35,000 after purchasing an additional 810 shares in the last quarter. Finally, Atlantic Union Bankshares Corp bought a new stake in shares of DraftKings in the 2nd quarter valued at about $45,000. Institutional investors 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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