DraftKings (NASDAQ:DKNG) Receives "Sell (D-)" Rating from Weiss Ratings

Key Points

• DraftKings' stock has received a "Sell (D-)" rating from Weiss Ratings, with other analysts giving mixed views on the stock's future performance.
• The company recently reported a quarterly revenue of $1.51 billion, exceeding estimates, and showed a 36.9% increase in revenue compared to the previous year.
• Insider sales have increased, with executives selling over 658,000 shares valued at approximately $29 million in the last three months.

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

A number of other equities research analysts have also recently commented on the stock. JMP Securities reduced their price target on shares of DraftKings from $54.00 to $51.00 and set a "market outperform" rating for the company in a report on Wednesday, October 1st. Morgan Stanley restated an "overweight" rating and issued a $52.00 price target (up from $51.00) on shares of DraftKings in a report on Friday, July 11th. Mizuho dropped their price objective on shares of DraftKings from $58.00 to $54.00 and set an "outperform" rating on the stock in a research note on Tuesday. Wall Street Zen cut shares of DraftKings from a "buy" rating to a "hold" rating in a report on Friday, October 3rd. Finally, Jefferies Financial Group set a $52.00 price objective on shares of DraftKings in a report on Monday. Twenty-six research analysts have rated the stock with a Buy rating, one has given a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $53.64.

DraftKings Trading Up 3.1%

Shares of NASDAQ:DKNG traded up $1.03 during trading on Wednesday, reaching $33.98. The stock had a trading volume of 26,831,140 shares, compared to its average volume of 15,281,520. The firm's fifty day moving average is $43.62 and its 200 day moving average is $39.69. The company has a debt-to-equity ratio of 1.82, a quick ratio of 1.34 and a current ratio of 1.34. DraftKings has a 52 week low of $29.64 and a 52 week high of $53.61. The stock has a market cap of $16.87 billion, a price-to-earnings ratio of -52.28, a P/E/G ratio of 0.70 and a beta of 1.99.

DraftKings (NASDAQ:DKNG - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The company reported $0.30 EPS for the quarter, beating analysts' consensus estimates of $0.16 by $0.14. The company had revenue of $1.51 billion for the quarter, compared to analyst estimates of $1.39 billion. DraftKings had a negative net margin of 5.63% and a negative return on equity of 30.06%. The company's quarterly revenue was up 36.9% on a year-over-year basis. During the same period in the prior year, the firm posted $0.12 EPS. DraftKings has set its FY 2025 guidance at EPS. As a group, equities analysts forecast that DraftKings will post 0.64 EPS for the current fiscal year.

Insider Activity at DraftKings

In related news, insider R Stanton Dodge sold 105,554 shares of the firm's stock in a transaction dated Tuesday, August 5th. The shares were sold at an average price of $44.60, for a total transaction of $4,707,708.40. Following the transaction, the insider directly owned 500,000 shares of the company's stock, valued at $22,300,000. This trade represents a 17.43% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Alan Wayne Ellingson sold 44,693 shares of the firm's stock in a transaction dated Tuesday, August 19th. The shares were sold at an average price of $44.90, for a total transaction of $2,006,715.70. Following the transaction, the chief financial officer directly owned 128,131 shares in the company, valued at $5,753,081.90. The trade was a 25.86% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 658,331 shares of company stock valued at $29,285,365 over the last three months. Insiders own 51.19% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. FNY Investment Advisers LLC bought a new position in shares of DraftKings during the first quarter valued at about $26,000. TD Private Client Wealth LLC raised its position in DraftKings by 54.4% in the second quarter. TD Private Client Wealth LLC now owns 800 shares of the company's stock worth $34,000 after acquiring an additional 282 shares during the period. Smallwood Wealth Investment Management LLC bought a new stake in DraftKings in the first quarter worth about $27,000. GPS Wealth Strategies Group LLC raised its position in DraftKings by 197.9% in the first quarter. GPS Wealth Strategies Group LLC now owns 849 shares of the company's stock worth $28,000 after acquiring an additional 564 shares during the period. Finally, Bank of Jackson Hole Trust bought a new stake in DraftKings in the first quarter worth about $31,000. 37.70% of the stock is owned by institutional investors.

About DraftKings

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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