DraftKings (NASDAQ:DKNG) Raised to Buy at Wall Street Zen

Key Points

• DraftKings' stock has been upgraded from a "hold" rating to a "buy" rating by Wall Street Zen, reflecting positive sentiment among analysts.
• The stock has seen varying target price adjustments, with Barclays increasing its target to $54.00, while the average price target sits around $54.78.
• DraftKings reported a significant 36.9% year-over-year revenue increase with a quarterly revenue of $1.51 billion, exceeding analysts' expectations.

DraftKings (NASDAQ:DKNG - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued on Saturday.

A number of other equities research analysts also recently issued reports on the stock. Morgan Stanley reiterated an "overweight" rating and issued a $52.00 target price (up previously from $51.00) on shares of DraftKings in a research report on Friday, July 11th. Mizuho dropped their price target on shares of DraftKings from $59.00 to $58.00 and set an "outperform" rating on the stock in a research note on Monday, May 12th. Needham & Company LLC reiterated a "buy" rating and issued a $65.00 target price on shares of DraftKings in a research note on Friday, May 9th. Cfra Research raised DraftKings to a "moderate buy" rating in a report on Monday, April 14th. Finally, Bank of America decreased their target price on DraftKings from $60.00 to $50.00 and set a "buy" rating for the company in a research report on Friday, May 9th. Two analysts have rated the stock with a hold rating and twenty-six have assigned a buy rating to the company. According to data from MarketBeat.com, DraftKings presently has a consensus rating of "Moderate Buy" and a consensus price target of $54.50.

DraftKings Stock Down 0.3%

NASDAQ DKNG traded down $0.15 during trading on Friday, reaching $42.73. 8,907,926 shares of the company's stock were exchanged, compared to its average volume of 10,458,396. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 1.82. DraftKings has a fifty-two week low of $29.29 and a fifty-two week high of $53.61. The company's fifty day simple moving average is $41.49 and its 200-day simple moving average is $39.40. The firm has a market capitalization of $38.00 billion, a PE ratio of -65.74, a P/E/G ratio of 1.25 and a beta of 1.70.

DraftKings (NASDAQ:DKNG - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The company reported $0.30 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.16 by $0.14. The business 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%. The firm's revenue was up 36.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.12 earnings per share. Sell-side analysts predict that DraftKings will post 0.64 EPS for the current year.

Insiders Place Their Bets

In other news, CFO Alan Wayne Ellingson sold 6,829 shares of the stock in a transaction 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 owned 171,268 shares in the company, valued at approximately $6,297,524.36. This represents a 3.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider R Stanton Dodge sold 105,554 shares of the firm's stock in a transaction dated Tuesday, August 5th. The shares were sold at an average price of $44.60, for a total transaction of $4,707,708.40. Following the completion of the sale, the insider owned 500,000 shares of the company's stock, valued at $22,300,000. The trade was a 17.43% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 642,181 shares of company stock valued at $25,550,925. Company insiders own 47.08% of the company's stock.

Institutional Investors Weigh In On DraftKings

A number of institutional investors and hedge funds have recently made changes to their positions in DKNG. Beacon Pointe Advisors LLC boosted its stake in shares of DraftKings by 1.9% during the 4th quarter. Beacon Pointe Advisors LLC now owns 10,699 shares of the company's stock worth $398,000 after buying an additional 203 shares during the last quarter. Nissay Asset Management Corp Japan ADV increased its position in shares of DraftKings by 0.3% in the fourth quarter. Nissay Asset Management Corp Japan ADV now owns 77,696 shares of the company's stock valued at $2,946,000 after acquiring an additional 217 shares during the last quarter. Brooklyn Investment Group raised its holdings in DraftKings by 7.3% during the first quarter. Brooklyn Investment Group now owns 3,987 shares of the company's stock worth $132,000 after acquiring an additional 270 shares in the last quarter. TD Private Client Wealth LLC boosted its position in DraftKings by 54.4% during the second quarter. TD Private Client Wealth LLC now owns 800 shares of the company's stock valued at $34,000 after purchasing an additional 282 shares during the last quarter. Finally, Farther Finance Advisors LLC grew its stake in DraftKings by 9.1% in the second quarter. Farther Finance Advisors LLC now owns 3,413 shares of the company's stock valued at $146,000 after purchasing an additional 286 shares in the last quarter. Institutional investors own 37.70% of the company's stock.

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.