DraftKings (NASDAQ:DKNG) Insider R Stanton Dodge Sells 62,500 Shares

Key Points

• DraftKings insider R. Stanton Dodge sold 62,500 shares on June 11 at an average price of $29.68, totaling about $1.86 million. The sale was part of a pre-arranged Rule 10b5-1 trading plan, and Dodge’s ownership fell by about 10.1%.
• DKNG shares were down 3.4% in mid-day trading, closing near $29.00 on heavy volume. The stock remains well below its 52-week high of $48.78 but above its 52-week low of $20.46.
• DraftKings’ latest quarterly results showed revenue growth of 16.8% year over year to $1.65 billion, though earnings per share of $0.20 missed estimates by $0.02. Analyst sentiment remains broadly positive, with an average Moderate Buy rating and a consensus price target of $34.21.

DraftKings Inc. (NASDAQ:DKNG - Get Free Report) insider R Stanton Dodge sold 62,500 shares of the stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $29.68, for a total transaction of $1,855,000.00. Following the transaction, the insider owned 556,258 shares in the company, valued at $16,509,737.44. This trade represents a 10.10% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

DraftKings Stock Down 3.4%

DKNG stock traded down $1.02 during mid-day trading on Friday, hitting $29.00. 14,361,038 shares of the company were exchanged, compared to its average volume of 14,380,117. The company has a market capitalization of $14.39 billion, a PE ratio of 483.33 and a beta of 1.66. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 3.03. DraftKings Inc. has a twelve month low of $20.46 and a twelve month high of $48.78. The firm has a fifty day simple moving average of $24.34 and a 200 day simple moving average of $27.56.

DraftKings (NASDAQ:DKNG - Get Free Report) last issued its quarterly earnings results on Friday, May 8th. The company reported $0.20 EPS for the quarter, missing the consensus estimate of $0.22 by ($0.02). The company had revenue of $1.65 billion for the quarter, compared to the consensus estimate of $1.63 billion. DraftKings had a return on equity of 13.51% and a net margin of 0.93%.The business's revenue for the quarter was up 16.8% on a year-over-year basis. During the same period in the previous year, the business posted ($0.07) EPS. On average, research analysts forecast that DraftKings Inc. will post 0.6 earnings per share for the current fiscal year.

More DraftKings News

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: DraftKings is drawing bullish attention after Oppenheimer reiterated a Buy rating, reinforcing optimism around the company’s growth outlook. DraftKings (DKNG) Receives a Buy from Oppenheimer
• Positive Sentiment: Investor enthusiasm picked up after DraftKings disclosed strong growth in its Predictions platform, with May volume reportedly surging and some articles calling it a potential new growth engine for the stock. Why DraftKings (DKNG) Stock Is Up Today
• Positive Sentiment: DraftKings also benefited from World Cup-related optimism, with analysts saying it could be a clear winner as sports betting activity rises during the tournament and marketing spend ramps up. Intel surges on rare double upgrade, DraftKings scores ahead of World Cup
• Positive Sentiment: Unusually heavy call-option buying and a strong weekly rally suggest traders are positioning for additional upside in DKNG. DKNG Bulls Are Eyeing A Breakout After Strongest Weekly Rally In 16 Months
• Neutral Sentiment: Some commentary notes DraftKings’ prediction-market business is growing quickly but is still relatively small versus larger rivals, so the long-term opportunity remains early-stage. DraftKings: Prediction Market Potential Is Becoming Clearer
• Negative Sentiment: JPMorgan cautioned that while May operating data showed progress, it does not yet point to immediate upside, which may temper some of the bullish momentum. DKNG Bulls Are Eyeing A Breakout After Strongest Weekly Rally In 16 Months

Analyst Ratings Changes

DKNG has been the topic of several research reports. BNP Paribas Exane assumed coverage on DraftKings in a research report on Thursday, May 14th. They set an "underperform" rating and a $20.00 price target on the stock. Oppenheimer lowered their target price on shares of DraftKings from $50.00 to $35.00 and set an "outperform" rating for the company in a research note on Tuesday, February 17th. Argus cut shares of DraftKings from a "buy" rating to a "hold" rating in a report on Tuesday, March 17th. Morgan Stanley restated an "overweight" rating on shares of DraftKings in a research report on Thursday, May 21st. Finally, Canaccord Genuity Group reduced their price target on shares of DraftKings from $50.00 to $44.00 and set a "buy" rating on the stock in a research report on Friday, February 13th. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $34.21.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its stake in shares of DraftKings by 3.1% in the fourth quarter. Vanguard Group Inc. now owns 44,758,204 shares of the company's stock valued at $1,542,368,000 after purchasing an additional 1,354,457 shares during the period. Citigroup Inc. boosted its position in shares of DraftKings by 40.6% during the third quarter. Citigroup Inc. now owns 1,939,764 shares of the company's stock worth $72,547,000 after buying an additional 560,139 shares during the period. Bedell Frazier Investment Counselling LLC bought a new position in DraftKings in the 3rd quarter worth approximately $4,492,000. Waycross Partners LLC acquired a new stake in DraftKings in the 4th quarter valued at approximately $2,584,000. Finally, DAVENPORT & Co LLC increased its position in DraftKings by 11.2% in the 4th quarter. DAVENPORT & Co LLC now owns 3,456,735 shares of the company's stock valued at $119,602,000 after acquiring an additional 348,333 shares during the period. 37.70% of the stock is currently owned by institutional investors.

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.

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