DraftKings (NASDAQ:DKNG) Stock Price Down 7.2% - Here's What Happened

Key Points

• DraftKings' stock price fell by 7.2% on Tuesday, trading as low as $40.10, with a significant drop in trading volume—down 76% from the average daily volume.
• Despite the recent decline, DraftKings has received favorable ratings from analysts, with a consensus rating of "Moderate Buy" and an average price target of $55.15.
• Insider trading activity revealed notable sales, including a significant transaction by insider R Stanton Dodge, who sold over 105,000 shares, decreasing their ownership by 17.09% of the total shares held.

DraftKings Inc. (NASDAQ:DKNG - Get Free Report)'s share price dropped 7.2% on Tuesday . The stock traded as low as $40.10 and last traded at $39.26. Approximately 2,357,936 shares changed hands during mid-day trading, a decline of 76% from the average daily volume of 9,985,817 shares. The stock had previously closed at $42.31.

Analyst Ratings Changes

DKNG has been the topic of several research reports. Sanford C. Bernstein initiated coverage on DraftKings in a report on Wednesday, June 4th. They issued an "outperform" rating and a $46.00 target price on the stock. Jefferies Financial Group set a $54.00 target price on DraftKings in a report on Thursday, August 21st. Stifel Nicolaus reduced their price objective on DraftKings from $53.00 to $51.00 and set a "buy" rating on the stock in a research report on Wednesday, July 16th. JPMorgan Chase & Co. assumed coverage on DraftKings in a research report on Monday, June 23rd. They issued an "overweight" rating and a $50.00 price objective on the stock. Finally, Wall Street Zen raised DraftKings from a "hold" rating to a "buy" rating in a research note on Saturday, September 20th. Twenty-five analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat, DraftKings has a consensus rating of "Moderate Buy" and an average price target of $55.15.

DraftKings Trading Down 10.6%

The business has a 50 day simple moving average of $44.96 and a two-hundred day simple moving average of $39.88. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 1.82. The stock has a market cap of $18.78 billion, a price-to-earnings ratio of -58.16, a price-to-earnings-growth ratio of 1.00 and a beta of 1.73.

DraftKings (NASDAQ:DKNG - Get Free Report) last issued its quarterly earnings data on Thursday, August 7th. The company reported $0.30 earnings per share for the quarter, beating analysts' consensus estimates 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 firm had revenue of $1.51 billion during the quarter, compared to analyst estimates of $1.39 billion. During the same quarter last year, the firm earned $0.12 EPS. DraftKings's quarterly revenue was up 36.9% on a year-over-year basis. DraftKings has set its FY 2025 guidance at EPS. As a group, equities analysts anticipate that DraftKings Inc. will post 0.64 EPS for the current year.

Insiders Place Their Bets

In other news, insider R Stanton Dodge sold 105,554 shares of the business's stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $47.37, for a total value of $5,000,092.98. Following the completion of the sale, the insider directly owned 512,181 shares in the company, valued at approximately $24,262,013.97. The trade was a 17.09% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Matthew Kalish sold 210,000 shares of the business's stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $42.90, for a total value of $9,009,000.00. Following the completion of the sale, the insider owned 4,190,233 shares of the company's stock, valued at $179,760,995.70. This trade represents a 4.77% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 658,331 shares of company stock worth $29,285,365. Corporate insiders own 47.08% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in DKNG. FNY Investment Advisers LLC acquired a new position in DraftKings during the 1st quarter worth $26,000. Smallwood Wealth Investment Management LLC acquired a new position in DraftKings during the 1st quarter worth $27,000. GPS Wealth Strategies Group LLC boosted its position in DraftKings by 197.9% during the 1st quarter. GPS Wealth Strategies Group LLC now owns 849 shares of the company's stock worth $28,000 after acquiring an additional 564 shares during the period. Bank of Jackson Hole Trust acquired a new position in DraftKings during the 1st quarter worth $31,000. Finally, MassMutual Private Wealth & Trust FSB boosted its position in DraftKings by 44.8% during the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 1,024 shares of the company's stock worth $34,000 after acquiring an additional 317 shares during the period. Institutional investors and hedge funds own 37.70% of the company's stock.

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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