DraftKings (NASDAQ:DKNG) Receives "Under Perform" Rating from Northland Securities

Key Points

• DraftKings has received an "under perform" rating from Northland Securities, with a target price of $33.00, indicating a potential downside of 11.76% from its previous close.
• Despite the negative rating, DraftKings has been positively reviewed by other analysts, including Truist Financial and Morgan Stanley, with target prices ranging from $52.00 to $64.00.
• In recent trading, DraftKings' stock opened at $37.40, with a market capitalization of $18.57 billion and a notable debt-to-equity ratio of 1.82.

DraftKings (NASDAQ:DKNG - Get Free Report)'s stock had its "under perform" rating restated by analysts at Northland Securities in a research note issued to investors on Wednesday, Marketbeat.com reports. They presently have a $33.00 target price on the stock. Northland Securities' price objective would suggest a potential downside of 11.76% from the stock's previous close.

DKNG has been the topic of several other research reports. Truist Financial raised their price objective on DraftKings from $50.00 to $55.00 and gave the stock a "buy" rating in a report on Wednesday, July 16th. Morgan Stanley restated an "overweight" rating and set a $52.00 price objective (up previously from $51.00) on shares of DraftKings in a report on Friday, July 11th. Susquehanna restated a "positive" rating and set a $64.00 price objective on shares of DraftKings in a report on Friday, August 8th. UBS Group decreased their price objective on DraftKings from $58.00 to $56.00 and set a "buy" rating on the stock in a report on Wednesday, September 24th. Finally, Barclays restated an "overweight" rating and set a $54.00 price objective (up previously from $51.00) on shares of DraftKings in a report on Friday, August 8th. Twenty-five research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, DraftKings currently has an average rating of "Moderate Buy" and an average price target of $54.56.

DraftKings Stock Performance

DraftKings stock opened at $37.40 on Wednesday. The company has a debt-to-equity ratio of 1.82, a quick ratio of 1.34 and a current ratio of 1.34. The stock has a fifty day moving average of $44.82 and a two-hundred day moving average of $39.86. The company has a market capitalization of $18.57 billion, a price-to-earnings ratio of -57.54, a PEG ratio of 1.00 and a beta of 1.73. DraftKings has a fifty-two week low of $29.64 and a fifty-two week high of $53.61.

DraftKings (NASDAQ:DKNG - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The company reported $0.30 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.14. DraftKings had a negative return on equity of 30.06% and a negative net margin of 5.63%.The company had revenue of $1.51 billion during the quarter, compared to the consensus estimate of $1.39 billion. During the same quarter last year, the business posted $0.12 earnings per share. DraftKings's revenue was up 36.9% compared to the same quarter last year. DraftKings has set its FY 2025 guidance at EPS. On average, analysts anticipate that DraftKings will post 0.64 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Jocelyn Moore sold 4,861 shares of the firm's stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $43.21, for a total value of $210,043.81. Following the transaction, the director directly owned 1,461 shares in the company, valued at $63,129.81. This trade represents a 76.89% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Alan Wayne Ellingson sold 44,693 shares of the firm's stock in a transaction dated Tuesday, August 19th. The stock was sold at an average price of $44.90, for a total value of $2,006,715.70. Following the completion of the transaction, the chief financial officer owned 128,131 shares in the company, valued at approximately $5,753,081.90. This trade represents a 25.86% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 658,331 shares of company stock worth $29,285,365. Corporate insiders own 47.08% of the company's stock.

Hedge Funds Weigh In On DraftKings

A number of large investors have recently modified their holdings of DKNG. FNY Investment Advisers LLC purchased a new stake in shares of DraftKings during the 1st quarter valued at about $26,000. Smallwood Wealth Investment Management LLC purchased a new stake in shares of DraftKings during the 1st quarter valued at about $27,000. GPS Wealth Strategies Group LLC raised its holdings in shares of DraftKings by 197.9% during the 1st quarter. GPS Wealth Strategies Group LLC now owns 849 shares of the company's stock valued at $28,000 after buying an additional 564 shares during the period. Bank of Jackson Hole Trust purchased a new stake in shares of DraftKings during the 1st quarter valued at about $31,000. Finally, MassMutual Private Wealth & Trust FSB raised its holdings in shares of DraftKings by 44.8% during the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 1,024 shares of the company's stock valued at $34,000 after buying an additional 317 shares during the period. 37.70% of the stock is currently owned by hedge funds and other 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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