DraftKings (NASDAQ:DKNG) Rating Lowered to Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded DraftKings from “hold” to “sell,” adding to mixed analyst sentiment. Despite the downgrade, the broader analyst consensus remains “Moderate Buy,” with an average price target of $34.11.
• DraftKings shares opened at $26.14, well below their 12-month high of $48.78; the company has a market capitalization of approximately $12.98 billion and a negative price-to-earnings ratio.
• Insiders sold 97,596 shares worth about $2.76 million over the past three months, while institutional investors and hedge funds own 37.70% of DraftKings’ stock.

DraftKings (NASDAQ:DKNG - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Saturday.

Several other analysts have also commented on DKNG. BNP Paribas Exane initiated coverage on shares of DraftKings in a research report on Thursday, May 14th. They set an "underperform" rating and a $20.00 price target on the stock. UBS Group upped their price objective on shares of DraftKings from $43.00 to $49.00 and gave the stock a "buy" rating in a research report on Friday, June 5th. Stifel Nicolaus lowered their target price on shares of DraftKings from $40.00 to $38.00 and set a "buy" rating on the stock in a research note on Wednesday, July 22nd. Roth Capital raised shares of DraftKings from a "sell" rating to a "buy" rating in a research note on Friday, April 24th. Finally, Weiss Ratings restated a "sell (d)" rating on shares of DraftKings in a research report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, DraftKings presently has an average rating of "Moderate Buy" and an average price target of $34.11.

DraftKings Price Performance

Shares of NASDAQ DKNG opened at $26.14 on Friday. The company has a debt-to-equity ratio of 3.22, a current ratio of 1.02 and a quick ratio of 1.02. The stock has a market capitalization of $12.98 billion, a price-to-earnings ratio of -68.79 and a beta of 1.66. The firm's 50 day simple moving average is $25.36 and its 200-day simple moving average is $24.75. DraftKings has a 12 month low of $20.46 and a 12 month high of $48.78.

Insider Buying and Selling at DraftKings

In other DraftKings news, 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 directly owned 556,258 shares of the company's stock, 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 document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Woodrow Levin sold 34,234 shares of DraftKings stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $25.71, for a total transaction of $880,156.14. Following the completion of the sale, the director owned 29,820 shares in the company, valued at approximately $766,672.20. This trade represents a 53.45% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 97,596 shares of company stock valued at $2,756,991. 47.18% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. Viking Global Investors LP acquired a new stake in DraftKings in the 3rd quarter worth about $561,125,000. Capital World Investors raised its holdings in shares of DraftKings by 181.4% during the fourth 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 last quarter. Janus Henderson Group PLC lifted its position in shares of DraftKings by 50.8% in the fourth quarter. Janus Henderson Group PLC now owns 25,313,909 shares of the company's stock valued at $858,893,000 after acquiring an additional 8,524,923 shares in the last quarter. Norges Bank purchased a new position in shares of DraftKings in the fourth quarter valued at approximately $284,466,000. Finally, Spruce House Investment Management LLC boosted its stake in shares of DraftKings by 129.6% in the first quarter. Spruce House Investment Management LLC now owns 9,650,000 shares of the company's stock worth $208,633,000 after acquiring an additional 5,446,166 shares during the last quarter. Institutional investors and hedge funds 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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