DraftKings (NASDAQ:DKNG) Shares Gap Up After Analyst Upgrade

Key Points

• DraftKings shares gapped up after Citizens JMP raised its price target from $34 to $36 and kept an outperform rating. The stock opened above its prior close and was trading higher on strong volume.
• Other analysts were mixed but generally constructive, with recent upgrades from Raymond James and reaffirmed buy/overweight calls from firms like Wells Fargo and Benchmark. MarketBeat says DraftKings still carries a Moderate Buy consensus and an average target price of $34.27.
• Insider selling continued, including recent stock sales by executive R. Stanton Dodge and director Woodrow Levin. DraftKings also reported revenue growth in its latest quarter, though EPS slightly missed estimates.

DraftKings Inc. (NASDAQ:DKNG - Get Free Report) shares gapped up prior to trading on Friday after Citizens Jmp raised their price target on the stock from $34.00 to $36.00. The stock had previously closed at $23.10, but opened at $23.70. Citizens Jmp currently has a market outperform rating on the stock. DraftKings shares last traded at $24.2870, with a volume of 3,774,030 shares trading hands.

Several other equities analysts have also recently weighed in on the company. Raymond James Financial upgraded DraftKings from a "market perform" rating to an "outperform" rating in a research report on Friday, April 24th. Moffett Nathanson cut DraftKings from a "buy" rating to a "neutral" rating and decreased their price target for the company from $38.00 to $27.00 in a research report on Friday, April 24th. Wells Fargo & Company reissued an "overweight" rating and issued a $32.00 price target on shares of DraftKings in a report on Sunday, May 10th. Benchmark reaffirmed a "buy" rating on shares of DraftKings in a research note on Monday. Finally, Deutsche Bank Aktiengesellschaft cut shares of DraftKings from a "hold" rating to a "hold" rating in a research note on Friday, April 24th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, eight have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, DraftKings presently has an average rating of "Moderate Buy" and an average target price of $34.27.

Insider Buying and Selling

In other DraftKings news, insider R Stanton Dodge sold 62,500 shares of the company's stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $29.68, for a total value of $1,855,000.00. Following the completion of the sale, the insider owned 556,258 shares of the company's stock, valued at $16,509,737.44. This represents a 10.10% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 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 that occurred on Monday, May 18th. The stock was sold at an average price of $25.71, for a total transaction of $880,156.14. Following the transaction, the director directly owned 29,820 shares in the company, valued at $766,672.20. This trade represents a 53.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 97,596 shares of company stock valued at $2,756,991 in the last 90 days. 47.18% of the stock is currently owned by corporate insiders.

DraftKings News Roundup

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: DraftKings launched DKeX, a proprietary prediction markets exchange built into its app, which could strengthen its competitive position, improve margins, and deepen user engagement. DraftKings Launches Proprietary Exchange to Bolster Differentiated Predictions Experience
• Positive Sentiment: Analyst sentiment remains constructive, with Citizens JMP raising its price target to $36 from $34 and maintaining an outperform rating, signaling confidence in DraftKings’ upside potential. DraftKings price target raised by Citizens JMP
• Neutral Sentiment: Bank of America said DraftKings shares have been volatile as investors balance the growth opportunity from prediction markets against profitability risks and softer engagement trends.
• Neutral Sentiment: Recent commentary from market watchers continues to frame DraftKings as a high-risk, high-reward name, with the stock still trading well below its recent highs despite renewed interest in prediction markets.
• Negative Sentiment: Earlier reports noted the stock was under pressure as investors worried about new competition, macro headwinds, and ongoing litigation/profitability concerns.

Hedge Funds Weigh In On DraftKings

Large investors have recently bought and sold shares of the stock. Dagco Inc. purchased a new position in shares of DraftKings in the fourth quarter worth $26,000. Ameriflex Group Inc. grew its holdings in DraftKings by 100.0% in the 3rd quarter. Ameriflex Group Inc. now owns 810 shares of the company's stock worth $30,000 after acquiring an additional 405 shares during the last quarter. Asset Dedication LLC purchased a new position in shares of DraftKings in the third quarter valued at about $37,000. Montag A & Associates Inc. increased its position in shares of DraftKings by 82.5% in the fourth quarter. Montag A & Associates Inc. now owns 1,106 shares of the company's stock valued at $38,000 after acquiring an additional 500 shares during the period. Finally, Aventura Private Wealth LLC purchased a new position in shares of DraftKings in the fourth quarter valued at about $39,000. 37.70% of the stock is owned by hedge funds and other institutional investors.

DraftKings Trading Up 5.2%

The company has a debt-to-equity ratio of 3.03, a current ratio of 1.02 and a quick ratio of 1.02. The firm's 50 day moving average price is $25.05 and its 200 day moving average price is $27.09. The stock has a market capitalization of $12.06 billion, a P/E ratio of 404.17 and a beta of 1.66.

DraftKings (NASDAQ:DKNG - Get Free Report) last posted its earnings results on Friday, May 8th. The company reported $0.20 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.22 by ($0.02). The business had revenue of $1.65 billion during the quarter, compared to the consensus estimate of $1.63 billion. DraftKings had a return on equity of 13.51% and a net margin of 0.93%.The firm's revenue for the quarter was up 16.8% compared to the same quarter last year. During the same period in the previous year, the business earned ($0.07) earnings per share. As a group, equities research analysts expect that DraftKings Inc. will post 0.6 earnings per share for the current fiscal year.

DraftKings Company Profile

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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