DraftKings (NASDAQ:DKNG) Shares Gap Up - What's Next?

Key Points

• Shares gapped up Monday, opening at $25.20 vs. Friday's close of $23.67 and last trading around $24.93 on ~3.8M shares (up about 2.6%).
• Analysts remain generally positive with a consensus rating of “Moderate Buy” and an average price target of $37.09, though UBS and Bank of America recently cut their targets to $43 and $30 respectively.
• Insider activity is mixed: insiders sold 549,495 shares (~$14.17M) over the last three months but Director Harry Sloan bought 100,000 shares at $21.85; insiders own ~47.08% of the stock while institutions hold ~37.7%.

DraftKings Inc. (NASDAQ:DKNG - Get Free Report)'s stock price gapped up prior to trading on Monday . The stock had previously closed at $23.67, but opened at $25.20. DraftKings shares last traded at $24.9260, with a volume of 3,800,487 shares.

Analyst Ratings Changes

Several research firms have recently weighed in on DKNG. UBS Group lowered their price objective on shares of DraftKings from $53.00 to $43.00 and set a "buy" rating on the stock in a research report on Monday, March 16th. Citigroup reissued a "market outperform" rating on shares of DraftKings in a research note on Tuesday, February 24th. Texas Capital upgraded DraftKings to a "hold" rating in a research report on Thursday, January 8th. Bank of America dropped their price target on DraftKings from $37.50 to $30.00 and set a "neutral" rating for the company in a research note on Friday, February 13th. Finally, Northland Securities set a $24.00 price objective on DraftKings in a report on Tuesday, February 17th. Twenty-five equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, DraftKings has a consensus rating of "Moderate Buy" and an average price target of $37.09.

DraftKings Stock Up 2.6%

The company has a market cap of $11.97 billion, a PE ratio of -607.75, a PEG ratio of 0.95 and a beta of 1.67. The stock's 50 day moving average price is $26.82 and its 200-day moving average price is $32.33. The company has a debt-to-equity ratio of 2.91, a quick ratio of 1.03 and a current ratio of 1.03.

Insiders Place Their Bets

In other news, insider R Stanton Dodge sold 52,777 shares of DraftKings stock in a transaction dated Tuesday, January 20th. The stock was sold at an average price of $32.01, for a total value of $1,689,391.77. Following the transaction, the insider owned 500,000 shares in the company, valued at approximately $16,005,000. The trade was a 9.55% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Harry Sloan bought 100,000 shares of the stock in a transaction dated Tuesday, February 17th. The stock was bought at an average cost of $21.85 per share, with a total value of $2,185,000.00. Following the purchase, the director owned 350,219 shares in the company, valued at $7,652,285.15. The trade was a 39.96% increase in their position. The SEC filing for this purchase provides additional information. Insiders sold a total of 549,495 shares of company stock valued at $14,166,700 over the last three months. 47.08% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On DraftKings

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Rockefeller Capital Management L.P. increased its stake in DraftKings by 458.2% in the 4th quarter. Rockefeller Capital Management L.P. now owns 104,360 shares of the company's stock worth $3,596,000 after purchasing an additional 85,665 shares during the period. World Investment Advisors bought a new stake in DraftKings in the fourth quarter valued at approximately $213,000. SHP Wealth Management purchased a new stake in shares of DraftKings during the fourth quarter valued at approximately $42,000. Strategic Investment Solutions Inc. IL bought a new position in shares of DraftKings in the fourth quarter worth approximately $69,000. Finally, MidFirst Bank bought a new position in shares of DraftKings in the fourth quarter worth approximately $325,000. 37.70% of the stock is currently owned by institutional investors.

About DraftKings

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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