DraftKings (NASDAQ:DKNG) Upgraded to Hold at Zacks Research

Key Points

• Zacks Research upgraded DraftKings from “strong sell” to “hold,” while the broader analyst view remains moderately positive with a consensus rating of “Moderate Buy” and a target price of $34.32.
• DraftKings posted mixed quarterly results: EPS of $0.20 missed estimates by $0.02, but revenue of $1.65 billion beat expectations and rose 16.8% year over year.
• Insider selling has been notable, including director Woodrow Levin’s sale of 34,234 shares, and insiders have sold 523,684 shares over the last 90 days.

DraftKings (NASDAQ:DKNG - Get Free Report) was upgraded by analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research report issued on Wednesday,Zacks.com reports.

A number of other research analysts also recently commented on DKNG. Sanford C. Bernstein reaffirmed an "outperform" rating and set a $30.00 price objective on shares of DraftKings in a research note on Thursday, March 5th. BMO Capital Markets upped their target price on DraftKings from $42.00 to $50.00 and gave the stock an "outperform" rating in a research report on Tuesday, March 3rd. Canaccord Genuity Group cut their price objective on shares of DraftKings from $50.00 to $44.00 and set a "buy" rating on the stock in a report on Friday, February 13th. JPMorgan Chase & Co. dropped their price target on shares of DraftKings from $32.00 to $31.00 and set an "overweight" rating for the company in a research note on Thursday, April 16th. Finally, Needham & Company LLC reaffirmed a "buy" rating and set a $35.00 target price on shares of DraftKings in a report on Monday, May 11th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $34.32.

DraftKings Stock Performance

Shares of DKNG stock opened at $25.40 on Wednesday. The stock has a fifty day moving average price of $23.69 and a 200 day moving average price of $27.96. The company has a debt-to-equity ratio of 3.03, a quick ratio of 1.02 and a current ratio of 1.02. The stock has a market cap of $12.60 billion, a PE ratio of 423.33 and a beta of 1.67. DraftKings has a 1 year low of $20.46 and a 1 year high of $48.78.

DraftKings (NASDAQ:DKNG - Get Free Report) last announced its quarterly 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 analysts' expectations of $1.63 billion. DraftKings had a net margin of 0.93% and a return on equity of 13.51%. The firm's revenue for the quarter was up 16.8% on a year-over-year basis. During the same period last year, the company earned ($0.07) EPS. Sell-side analysts forecast that DraftKings will post 0.62 earnings per share for the current fiscal year.

Insider Buying and Selling at DraftKings

In other news, Director Woodrow Levin sold 34,234 shares of DraftKings stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $25.71, for a total value of $880,156.14. Following the transaction, the director owned 29,820 shares of the company's stock, valued at $766,672.20. The trade was a 53.45% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Jocelyn Moore sold 2,150 shares of the firm's stock in a transaction that occurred on Friday, March 13th. The stock was sold at an average price of $25.60, for a total transaction of $55,040.00. Following the sale, the director owned 1,406 shares of the company's stock, valued at $35,993.60. The trade was a 60.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 523,684 shares of company stock valued at $13,193,934 over the last 90 days. Insiders own 47.18% of the company's stock.

Hedge Funds Weigh In On DraftKings

A number of institutional investors have recently made changes to their positions in the business. Ariadne Wealth Management LP lifted its holdings in shares of DraftKings by 11.8% during the first quarter. Ariadne Wealth Management LP now owns 12,525 shares of the company's stock worth $271,000 after buying an additional 1,324 shares during the last quarter. Edgestream Partners L.P. acquired a new position in DraftKings during the 1st quarter valued at $4,473,000. Janus Henderson Group PLC raised its stake in DraftKings by 9.3% during the 1st quarter. Janus Henderson Group PLC now owns 27,665,699 shares of the company's stock valued at $588,288,000 after purchasing an additional 2,351,790 shares during the last quarter. Centaurus Financial Inc. boosted its holdings in DraftKings by 25.5% in the 1st quarter. Centaurus Financial Inc. now owns 13,769 shares of the company's stock valued at $298,000 after purchasing an additional 2,797 shares during the period. Finally, Bull Harbor Capital LLC acquired a new stake in DraftKings in the 1st quarter worth $758,000. 37.70% of the stock is currently owned by institutional investors.

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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