DraftKings Sees Unusually High Options Volume (NASDAQ:DKNG)

Key Points

• DraftKings experienced a significant rise in options trading, with 76,576 call options purchased, a 72% increase compared to the usual volume.
• The company's stock rose by 1.7%, trading at $45.68, as analysts raised their ratings and price targets, including a $65 target from Needham & Company LLC.
• Insider trading activity included Matthew Kalish selling 210,000 shares, resulting in a 4.81% decrease in his ownership stake in DraftKings.

DraftKings Inc. (NASDAQ:DKNG - Get Free Report) saw unusually large options trading on Wednesday. Stock investors purchased 76,576 call options on the company. Thisrepresentsanincreaseofapproximately72% compared to the typical volume of 44,578 call options.

DraftKings Trading Up 1.7%

Shares of NASDAQ DKNG traded up $0.74 during midday trading on Wednesday, reaching $45.68. The stock had a trading volume of 5,323,979 shares, compared to its average volume of 10,268,155. The company's 50 day moving average price is $40.94 and its 200 day moving average price is $39.33. The company has a debt-to-equity ratio of 2.11, a quick ratio of 1.20 and a current ratio of 1.20. DraftKings has a twelve month low of $29.29 and a twelve month high of $53.61. The firm has a market cap of $40.63 billion, a price-to-earnings ratio of -55.01, a price-to-earnings-growth ratio of 1.52 and a beta of 1.70.

Wall Street Analysts Forecast Growth

Several research firms have commented on DKNG. Cfra Research raised shares of DraftKings to a "moderate buy" rating in a report on Monday, April 14th. Sanford C. Bernstein initiated coverage on shares of DraftKings in a research note on Wednesday, June 4th. They issued an "outperform" rating and a $46.00 price objective on the stock. Needham & Company LLC restated a "buy" rating and set a $65.00 target price on shares of DraftKings in a research note on Friday, May 9th. TD Securities decreased their price target on DraftKings from $60.00 to $55.00 and set a "buy" rating on the stock in a research note on Thursday, April 24th. Finally, JMP Securities dropped their price objective on DraftKings from $54.00 to $50.00 and set a "market outperform" rating for the company in a research report on Thursday, June 5th. One equities research analyst has rated the stock with a hold rating and twenty-five have assigned a buy rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $54.37.

Insider Transactions at DraftKings

In related news, insider Matthew Kalish sold 210,000 shares of the company's stock in a transaction dated Tuesday, May 13th. The shares were sold at an average price of $37.83, for a total value of $7,944,300.00. Following the transaction, the insider directly owned 4,155,130 shares in the company, valued at approximately $157,188,567.90. This represents a 4.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider R Stanton Dodge sold 105,554 shares of DraftKings stock in a transaction dated Friday, July 18th. The stock was sold at an average price of $43.53, for a total transaction of $4,594,765.62. Following the completion of the sale, the insider owned 500,000 shares of the company's stock, valued at $21,765,000. This trade represents a 17.43% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 536,627 shares of company stock worth $20,843,217. Insiders own 47.08% of the company's stock.

Hedge Funds Weigh In On DraftKings

Hedge funds and other institutional investors have recently bought and sold shares of the company. Andra AP fonden bought a new position in shares of DraftKings in the 2nd quarter worth about $2,016,000. Helios Capital Management PTE. Ltd. lifted its stake in DraftKings by 926.0% in the second quarter. Helios Capital Management PTE. Ltd. now owns 114,000 shares of the company's stock valued at $4,889,000 after buying an additional 102,889 shares during the period. Resona Asset Management Co. Ltd. increased its stake in shares of DraftKings by 9.8% in the 2nd quarter. Resona Asset Management Co. Ltd. now owns 142,619 shares of the company's stock valued at $6,117,000 after acquiring an additional 12,773 shares in the last quarter. Atlantic Union Bankshares Corp bought a new stake in DraftKings in the second quarter valued at $45,000. Finally, Main Street Research LLC bought a new stake in DraftKings in the 2nd quarter valued at about $279,000. Institutional investors and hedge funds 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.

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