DraftKings (NASDAQ:DKNG) Shares Down 3.9% - Here's What Happened

Key Points

• DraftKings' shares fell by 3.9% to $33.36, with trading volume significantly below the average, indicating potential volatility in the stock price.
• Analysts have mixed opinions on DraftKings, with a majority rating the stock as a "Moderate Buy"** and predicting a consensus price target of $52.83 despite recent downgrades from some firms.
• Insiders, including a director and CFO, sold a total of 605,554 shares in the last three months, raising concerns about insider confidence in the company's future performance.

Shares of DraftKings Inc. (NASDAQ:DKNG - Get Free Report) were down 3.9% on Friday . The stock traded as low as $33.40 and last traded at $33.36. Approximately 6,100,472 shares traded hands during trading, a decline of 45% from the average daily volume of 11,033,652 shares. The stock had previously closed at $34.70.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on DKNG shares. Wall Street Zen lowered shares of DraftKings from a "buy" rating to a "hold" rating in a report on Friday, October 3rd. Citigroup reissued a "neutral" rating on shares of DraftKings in a report on Wednesday, October 1st. Morgan Stanley reissued an "overweight" rating and set a $52.00 price objective (up from $51.00) on shares of DraftKings in a report on Friday, July 11th. BTIG Research decreased their price target on shares of DraftKings from $53.00 to $45.00 and set a "buy" rating for the company in a report on Thursday, October 2nd. Finally, Northland Securities set a $30.00 price target on shares of DraftKings in a report on Monday, October 13th. Twenty-seven investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $52.83.

DraftKings Price Performance

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 company's fifty day moving average price is $41.46 and its 200 day moving average price is $39.62. The firm has a market capitalization of $16.49 billion, a price-to-earnings ratio of -51.07, a price-to-earnings-growth ratio of 0.87 and a beta of 1.99.

DraftKings (NASDAQ:DKNG - Get Free Report) last posted its earnings results on Thursday, August 7th. The company reported $0.30 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.16 by $0.14. The firm had revenue of $1.51 billion during 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%. DraftKings's revenue was up 36.9% on a year-over-year basis. During the same period in the previous year, the business posted $0.12 EPS. DraftKings has set its FY 2025 guidance at EPS. Equities research analysts expect that DraftKings Inc. will post 0.64 earnings per share for the current year.

Insider Activity

In other DraftKings news, Director Jocelyn Moore sold 4,861 shares of the business's stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $43.21, for a total transaction of $210,043.81. Following the completion of the transaction, the director directly owned 1,461 shares of the company's stock, valued at $63,129.81. The trade was a 76.89% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Alan Wayne Ellingson sold 44,693 shares of the business's stock in a transaction dated Tuesday, August 19th. The stock was sold at an average price of $44.90, for a total transaction of $2,006,715.70. Following the sale, the chief financial officer owned 128,131 shares in the company, valued at $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. Insiders sold a total of 605,554 shares of company stock worth $26,515,100 over the last three months. Insiders own 51.19% of the company's stock.

Institutional Trading of DraftKings

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. raised its position in shares of DraftKings by 1.6% during the 2nd quarter. Vanguard Group Inc. now owns 43,761,344 shares of the company's stock worth $1,876,924,000 after buying an additional 670,884 shares in the last quarter. T. Rowe Price Investment Management Inc. raised its position in shares of DraftKings by 0.7% during the 1st quarter. T. Rowe Price Investment Management Inc. now owns 18,700,071 shares of the company's stock worth $621,030,000 after buying an additional 130,434 shares in the last quarter. Geode Capital Management LLC raised its position in shares of DraftKings by 5.4% during the 2nd quarter. Geode Capital Management LLC now owns 9,014,088 shares of the company's stock worth $385,552,000 after buying an additional 458,452 shares in the last quarter. Norges Bank bought a new stake in shares of DraftKings during the 2nd quarter worth about $362,554,000. Finally, Baillie Gifford & Co. raised its position in shares of DraftKings by 26.5% during the 1st quarter. Baillie Gifford & Co. now owns 8,390,236 shares of the company's stock worth $278,640,000 after buying an additional 1,756,778 shares in the last quarter. 37.70% of the stock is currently owned by institutional investors.

DraftKings Company Profile

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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