DraftKings (NASDAQ:DKNG) Price Target Raised to $45.00

Key Points

• Mizuho raised its price target on DraftKings from $44 to $45 and kept an "outperform" rating, implying roughly 83.6% upside from the current share price.
• Analyst views remain mixed overall: DraftKings has a consensus rating of Moderate Buy with an average price target of $34.84, though other firms have recently cut or lowered targets.
• The company’s latest earnings showed revenue growth of 16.8% to $1.65 billion, but EPS of $0.20 missed expectations by $0.02.

DraftKings (NASDAQ:DKNG - Get Free Report) had its target price increased by stock analysts at Mizuho from $44.00 to $45.00 in a research report issued on Tuesday,Benzinga reports. The firm currently has an "outperform" rating on the stock. Mizuho's target price would suggest a potential upside of 83.60% from the stock's current price.

Several other research analysts have also issued reports on the company. Stifel Nicolaus reduced their target price on DraftKings from $44.00 to $40.00 and set a "buy" rating on the stock in a research report on Tuesday, February 17th. HSBC upgraded DraftKings from a "hold" rating to a "hold" rating in a research report on Friday, April 24th. Stephens assumed coverage on DraftKings in a research report on Friday, April 24th. They set an "overweight" rating on the stock. Argus cut shares of DraftKings from a "buy" rating to a "hold" rating in a research note on Tuesday, March 17th. Finally, Northland Securities set a $27.00 price objective on shares of DraftKings in a research report on Monday. Twenty-seven investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, DraftKings presently has a consensus rating of "Moderate Buy" and an average price target of $34.84.

DraftKings Stock Performance

NASDAQ DKNG opened at $24.51 on Tuesday. The company has a market cap of $12.15 billion, a P/E ratio of 408.50, a P/E/G ratio of 1.20 and a beta of 1.67. The business's 50 day moving average price is $23.63 and its 200-day moving average price is $28.36. DraftKings has a fifty-two week low of $20.46 and a fifty-two week high of $48.78. The company has a debt-to-equity ratio of 2.91, a quick ratio of 1.03 and a current ratio of 1.03.

DraftKings (NASDAQ:DKNG - Get Free Report) last announced its earnings results on Thursday, May 7th. 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 during the quarter, compared to analysts' expectations of $1.63 billion. DraftKings had a net margin of 0.93% and a return on equity of 12.71%. The company's revenue was up 16.8% compared to the same quarter last year. During the same period in the prior year, the company posted ($0.07) EPS. Sell-side analysts predict that DraftKings will post 0.56 earnings per share for the current year.

Insider Buying and Selling

In related news, CAO Erik Bradbury sold 2,883 shares of the company's stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $24.56, for a total transaction of $70,806.48. Following the sale, the chief accounting officer directly owned 38,168 shares in the company, valued at approximately $937,406.08. This represents a 7.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Harry Sloan bought 100,000 shares of DraftKings stock in a transaction that occurred on Tuesday, February 17th. The stock was purchased at an average cost of $21.85 per share, for a total transaction of $2,185,000.00. Following the acquisition, the director owned 350,219 shares of the company's stock, valued at $7,652,285.15. This represents a 39.96% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have sold 496,718 shares of company stock worth $12,477,308 in the last quarter. Company insiders own 47.18% of the company's stock.

Hedge Funds Weigh In On DraftKings

Large investors have recently bought and sold shares of the business. Viking Global Investors LP acquired a new position in DraftKings during the third quarter worth approximately $561,125,000. Capital World Investors lifted its position in shares of DraftKings by 181.4% during the 4th quarter. Capital World Investors now owns 18,626,429 shares of the company's stock valued at $641,867,000 after acquiring an additional 12,008,357 shares during the period. Janus Henderson Group PLC boosted its stake in shares of DraftKings by 50.8% during the 4th quarter. Janus Henderson Group PLC now owns 25,313,909 shares of the company's stock worth $858,893,000 after acquiring an additional 8,524,923 shares in the last quarter. Norges Bank acquired a new stake in shares of DraftKings in the 4th quarter worth approximately $284,466,000. Finally, AQR Capital Management LLC grew its holdings in shares of DraftKings by 41.0% in the 4th quarter. AQR Capital Management LLC now owns 16,474,009 shares of the company's stock worth $567,694,000 after acquiring an additional 4,788,337 shares during the period. Hedge funds and other institutional investors own 37.70% of the company's stock.

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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