DraftKings (NASDAQ:DKNG) Shares Gap Down After Analyst Downgrade

Shares of DraftKings Inc. (NASDAQ:DKNG - Get Free Report) gapped down prior to trading on Monday after Morgan Stanley lowered their price target on the stock from $53.00 to $51.00. The stock had previously closed at $35.88, but opened at $34.09. Morgan Stanley currently has an overweight rating on the stock. DraftKings shares last traded at $33.21, with a volume of 4,988,583 shares changing hands.

A number of other brokerages have also weighed in on DKNG. Northland Securities set a $50.00 target price on shares of DraftKings in a research report on Friday, April 25th. JPMorgan Chase & Co. increased their target price on shares of DraftKings from $53.00 to $61.00 and gave the stock an "overweight" rating in a research report on Tuesday, February 18th. Truist Financial cut their target price on shares of DraftKings from $60.00 to $50.00 and set a "buy" rating for the company in a research report on Wednesday, April 23rd. Bank of America lowered their target price on shares of DraftKings from $60.00 to $50.00 and set a "buy" rating on the stock in a report on Friday, May 9th. Finally, Canaccord Genuity Group boosted their target price on shares of DraftKings from $54.00 to $60.00 and gave the company a "buy" rating in a report on Friday, February 14th. One investment analyst has rated the stock with a hold rating and twenty-six have given a buy rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $54.96.

Insider Activity

In related news, CFO Alan Wayne Ellingson sold 6,829 shares of DraftKings stock in a transaction that occurred on Friday, May 16th. The stock was sold at an average price of $36.77, for a total transaction of $251,102.33. Following the sale, the chief financial officer now directly owns 171,268 shares in the company, valued at $6,297,524.36. The trade was a 3.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider R Stanton Dodge sold 52,777 shares of the stock in a transaction dated Friday, March 14th. The stock was sold at an average price of $37.62, for a total transaction of $1,985,470.74. Following the completion of the transaction, the insider now owns 706,620 shares of the company's stock, valued at approximately $26,583,044.40. The trade was a 6.95% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 1,075,011 shares of company stock valued at $40,953,310. 51.19% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the business. Addison Capital Co grew its stake in shares of DraftKings by 1.5% in the 1st quarter. Addison Capital Co now owns 27,290 shares of the company's stock worth $906,000 after buying an additional 402 shares during the last quarter. Capital Impact Advisors LLC purchased a new stake in shares of DraftKings in the first quarter worth $6,901,000. Bayforest Capital Ltd purchased a new stake in shares of DraftKings in the first quarter worth $854,000. SCS Capital Management LLC purchased a new stake in shares of DraftKings in the first quarter worth $309,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in DraftKings by 4.5% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,530,232 shares of the company's stock valued at $50,819,000 after purchasing an additional 66,308 shares during the last quarter. 37.70% of the stock is owned by hedge funds and other institutional investors.

DraftKings Stock Up 1.7%

The company's 50-day moving average is $34.58 and its 200 day moving average is $39.03. The company has a market capitalization of $30.52 billion, a PE ratio of -32.38, a P/E/G ratio of 1.43 and a beta of 1.89. The company has a debt-to-equity ratio of 1.24, a quick ratio of 1.00 and a current ratio of 0.93.

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.