DraftKings (NASDAQ:DKNG) Trading Up 4.3% - Time to Buy?

Key Points

• DraftKings Inc. shares rose 4.3% to $35.05 after trading above $35 during mid-day, backed by increased trading volume.
• Equities analysts have mixed ratings on DraftKings, with a consensus rating of "Moderate Buy" and an average target price of $52.83, despite some recent downgrades.
• The company reported a quarterly revenue of $1.51 billion, exceeding estimates, with an EPS of $0.30, signaling strong year-over-year growth despite ongoing negative margins.

DraftKings Inc. (NASDAQ:DKNG - Get Free Report) shares were up 4.3% on Wednesday . The stock traded as high as $35.04 and last traded at $35.05. Approximately 11,994,599 shares traded hands during mid-day trading, an increase of 9% from the average daily volume of 11,022,346 shares. The stock had previously closed at $33.62.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the stock. Berenberg Bank set a $43.00 price target on shares of DraftKings and gave the stock a "buy" rating in a research report on Thursday, October 9th. Oppenheimer lowered their target price on shares of DraftKings from $60.00 to $55.00 and set an "outperform" rating for the company in a research note on Wednesday, October 1st. Wall Street Zen downgraded shares of DraftKings from a "buy" rating to a "hold" rating in a research note on Friday, October 3rd. Deutsche Bank Aktiengesellschaft set a $47.00 target price on shares of DraftKings and gave the company a "hold" rating in a research note on Friday, August 8th. Finally, JMP Securities lowered their target price on shares of DraftKings from $54.00 to $51.00 and set a "market outperform" rating for the company in a research note on Wednesday, October 1st. Twenty-seven research analysts have rated the stock with a Buy rating, one has given a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $52.83.

DraftKings Stock Performance

The stock's 50-day moving average price is $41.81 and its 200 day moving average price is $39.64. The company has a debt-to-equity ratio of 1.82, a current ratio of 1.34 and a quick ratio of 1.34. The firm has a market cap of $17.23 billion, a P/E ratio of -53.38, a price-to-earnings-growth ratio of 0.84 and a beta of 1.99.

DraftKings (NASDAQ:DKNG - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The company reported $0.30 EPS for the quarter, topping analysts' consensus estimates of $0.16 by $0.14. DraftKings had a negative net margin of 5.63% and a negative return on equity of 30.06%. The business had revenue of $1.51 billion for the quarter, compared to analyst estimates of $1.39 billion. During the same quarter in the previous year, the firm posted $0.12 earnings per share. The firm's revenue for the quarter was up 36.9% on a year-over-year basis. DraftKings has set its FY 2025 guidance at EPS. As a group, equities analysts predict that DraftKings Inc. will post 0.64 EPS for the current year.

Insider Activity

In other DraftKings news, Director Jocelyn Moore sold 4,861 shares of the company's stock in a transaction on Wednesday, August 13th. The shares were sold at an average price of $43.21, for a total transaction of $210,043.81. Following the sale, the director directly owned 1,461 shares of the company's stock, valued at approximately $63,129.81. This represents a 76.89% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Ryan R. Moore sold 76,390 shares of the company's stock in a transaction on Thursday, August 21st. The stock was sold at an average price of $45.92, for a total transaction of $3,507,828.80. Following the sale, the director directly owned 402 shares in the company, valued at $18,459.84. This trade represents a 99.48% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 605,554 shares of company stock valued at $26,515,100. 51.19% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On DraftKings

Institutional investors and hedge funds have recently modified their holdings of the stock. IHT Wealth Management LLC raised its holdings in DraftKings by 4.1% in the 2nd quarter. IHT Wealth Management LLC now owns 6,271 shares of the company's stock valued at $269,000 after buying an additional 248 shares during the last quarter. Brooklyn Investment Group raised its holdings in DraftKings by 7.3% during the 1st quarter. Brooklyn Investment Group now owns 3,987 shares of the company's stock worth $132,000 after purchasing an additional 270 shares during the last quarter. TD Private Client Wealth LLC raised its holdings in DraftKings by 54.4% during the 2nd quarter. TD Private Client Wealth LLC now owns 800 shares of the company's stock worth $34,000 after purchasing an additional 282 shares during the last quarter. Farther Finance Advisors LLC raised its holdings in DraftKings by 9.1% during the 2nd quarter. Farther Finance Advisors LLC now owns 3,413 shares of the company's stock worth $146,000 after purchasing an additional 286 shares during the last quarter. Finally, Obermeyer Wealth Partners grew its position in shares of DraftKings by 3.4% during the 1st quarter. Obermeyer Wealth Partners now owns 8,930 shares of the company's stock worth $297,000 after buying an additional 297 shares during the period. 37.70% of the stock is currently owned by institutional investors and hedge funds.

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.

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