DraftKings (NASDAQ:DKNG) Price Target Raised to $36.00 at Citizens Jmp

Key Points

• Citizens JMP raised DraftKings’ price target from $34 to $36 and kept a “market outperform” rating, implying about 51% upside from the prior close.
• DraftKings shares were down to $23.79 on Thursday, well below the new target, with the stock still trading far under its 52-week high of $48.78.
• The company recently reported better-than-expected revenue of $1.65 billion for the quarter, though earnings per share missed estimates by $0.02; analysts still expect full-year EPS of about 0.6.

DraftKings (NASDAQ:DKNG - Get Free Report) had its price target upped by equities research analysts at Citizens Jmp from $34.00 to $36.00 in a report released on Thursday, Marketbeat.com reports. The firm presently has a "mkt outperform" rating on the stock. Citizens Jmp's price target suggests a potential upside of 51.32% from the stock's previous close.

A number of other research analysts have also recently commented on the stock. Guggenheim reissued a "buy" rating and issued a $35.00 target price on shares of DraftKings in a report on Wednesday. Freedom Capital raised shares of DraftKings to a "strong-buy" rating in a report on Wednesday, May 20th. Stephens assumed coverage on shares of DraftKings in a report on Friday, April 24th. They issued an "overweight" rating on the stock. Needham & Company LLC restated a "buy" rating and set a $35.00 target price on shares of DraftKings in a research report on Monday, May 11th. Finally, JPMorgan Chase & Co. decreased their price target on shares of DraftKings from $32.00 to $31.00 and set an "overweight" rating on the stock in a research note on Thursday, April 16th. One research analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $34.27.

DraftKings Price Performance

NASDAQ DKNG traded down $0.74 during midday trading on Thursday, hitting $23.79. The company had a trading volume of 3,437,380 shares, compared to its average volume of 14,135,778. The company has a market capitalization of $11.80 billion, a PE ratio of 397.25 and a beta of 1.66. DraftKings has a twelve month low of $20.46 and a twelve month high of $48.78. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 3.03. The firm has a 50-day moving average price of $25.04 and a 200-day moving average price of $27.17.

DraftKings (NASDAQ:DKNG - Get Free Report) last posted its quarterly earnings data on Friday, May 8th. The company reported $0.20 earnings per share for the quarter, missing the consensus estimate of $0.22 by ($0.02). The firm 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 company's revenue for the quarter was up 16.8% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.07) EPS. As a group, analysts anticipate that DraftKings will post 0.6 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider R Stanton Dodge sold 62,500 shares of the firm's stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $29.68, for a total value of $1,855,000.00. Following the completion of the sale, the insider owned 556,258 shares in the company, valued at approximately $16,509,737.44. This trade represents a 10.10% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Woodrow Levin sold 34,234 shares of the business's stock in a transaction that occurred 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. This trade represents a 53.45% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 97,596 shares of company stock worth $2,756,991. Company insiders own 47.18% of the company's stock.

Institutional Investors Weigh In On DraftKings

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Dagco Inc. purchased a new position in shares of DraftKings in the fourth quarter worth about $26,000. Ascentis Independent Advisors acquired a new position in shares of DraftKings during the 1st quarter worth approximately $27,000. Basecamp Wealth Advisors LLC increased its holdings in shares of DraftKings by 3,547.1% in the first 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. Ameriflex Group Inc. boosted its stake in DraftKings by 100.0% during the third quarter. Ameriflex Group Inc. now owns 810 shares of the company's stock worth $30,000 after buying an additional 405 shares during the last quarter. Finally, Asset Dedication LLC purchased a new stake in DraftKings in the 3rd quarter valued at $37,000. Institutional investors and hedge funds own 37.70% of the company's stock.

DraftKings Company Profile

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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