Insider Buying: DraftKings (NASDAQ:DKNG) Director Purchases $98,800.00 in Stock

Key Points

• DraftKings director Gregory Wendt bought 5,000 shares for $98,800 at an average price of $19.76, increasing his stake by 27.9% to 22,920 shares.
• DraftKings’ latest quarter missed analyst expectations: EPS was -$0.53 versus -$0.41 forecast, and revenue was $1.33 billion versus $1.39 billion expected, although revenue rose 16.2% year over year.
• Analysts’ average rating is “Moderate Buy,” with a $27.61 average price target, while several firms have cut targets amid concerns about the company’s outlook and prediction-market investment costs.

DraftKings Inc. (NASDAQ:DKNG - Get Free Report) Director Gregory Wendt purchased 5,000 shares of the stock in a transaction that occurred on Wednesday, November 11th. The stock was bought at an average cost of $19.76 per share, for a total transaction of $98,800.00. Following the acquisition, the director directly owned 22,920 shares in the company, valued at $452,899.20. This trade represents a 27.90% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link.

DraftKings Price Performance

Shares of NASDAQ DKNG opened at $19.64 on Thursday. The company has a current ratio of 0.99, a quick ratio of 1.02 and a debt-to-equity ratio of 12.21. The stock has a fifty day simple moving average of $21.20 and a two-hundred day simple moving average of $23.88. DraftKings Inc. has a 1-year low of $16.55 and a 1-year high of $36.98. The firm has a market cap of $9.79 billion, a price-to-earnings ratio of -24.55, a price-to-earnings-growth ratio of 2.54 and a beta of 1.65.

DraftKings (NASDAQ:DKNG - Get Free Report) last issued its earnings results on Thursday, November 5th. The company reported ($0.53) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.41) by ($0.12). DraftKings had a negative net margin of 5.91% and a negative return on equity of 43.92%. The firm had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.39 billion. During the same quarter in the previous year, the firm earned ($0.26) earnings per share. The business's quarterly revenue was up 16.2% compared to the same quarter last year. Analysts anticipate that DraftKings Inc. will post 0.31 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the stock. Needham & Company LLC reduced their target price on shares of DraftKings from $30.00 to $25.00 and set a "buy" rating for the company in a research note on Monday. Bank of America reaffirmed a "buy" rating on shares of DraftKings in a report on Friday, November 6th. Citizens Jmp reduced their price objective on shares of DraftKings from $37.00 to $35.00 and set a "market outperform" rating for the company in a research note on Thursday, September 24th. Citigroup lowered their target price on shares of DraftKings from $28.00 to $22.00 and set a "buy" rating on the stock in a report on Tuesday. Finally, Barclays dropped their target price on DraftKings from $34.00 to $27.00 and set an "overweight" rating on the stock in a research report on Monday. One investment analyst has rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating, ten have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $27.61.

Institutional Investors Weigh In On DraftKings

A number of institutional investors and hedge funds have recently modified their holdings of the company. Janus Henderson Group PLC grew its stake in DraftKings by 9.3% during the first quarter. Janus Henderson Group PLC now owns 27,665,699 shares of the company's stock valued at $588,288,000 after acquiring an additional 2,351,790 shares in the last quarter. Spruce House Investment Management LLC raised its position in shares of DraftKings by 129.6% in the first quarter. Spruce House Investment Management LLC now owns 9,650,000 shares of the company's stock worth $208,633,000 after buying an additional 5,446,166 shares in the last quarter. Swiss National Bank raised its position in shares of DraftKings by 7.4% in the first quarter. Swiss National Bank now owns 1,314,864 shares of the company's stock worth $28,427,000 after buying an additional 90,400 shares in the last quarter. Bank of New York Mellon Corp bought a new stake in DraftKings during the second quarter valued at $24,014,000. Finally, Quantinno Capital Management LP boosted its stake in DraftKings by 273.9% during the first quarter. Quantinno Capital Management LP now owns 898,241 shares of the company's stock valued at $19,420,000 after buying an additional 658,006 shares during the period. 37.70% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting DraftKings

These are some of the DKNG headlines that stood out recently:

• Negative Sentiment: Investors face continued concern over DraftKings’ outlook after weak third-quarter results and a guidance reset. The company’s prediction-market investment—reported at $650 million to $700 million—has raised questions about costs and future profitability. Jim Cramer Sounds Alarm on DraftKings and Gambling Stocks
• Negative Sentiment: Several brokerages lowered DraftKings’ ratings or price targets, reflecting skepticism about the revised outlook and the economics of prediction markets. Jim Cramer also voiced concern about the company and gambling stocks. DraftKings Management Called the Quarter a Pivotal Moment; Three Firms Downgraded It
• Negative Sentiment: Two law firms announced investigations into whether DraftKings adequately disclosed prediction-market investment costs and other business information. These are investigations, not findings of wrongdoing, but add legal and reputational uncertainty. Levi & Korsinsky Investigation Notice

DraftKings Company Profile

DraftKings Inc. is a digital sports and entertainment company founded in 2012. It began as a daily fantasy sports platform and has since expanded into online sports betting and gaming. The company offers daily fantasy contests, a sportsbook and online casino products, including games such as slots and table games. Its services are available in a range of U.S. jurisdictions and in Ontario, Canada, where permitted by local regulations. DraftKings is headquartered in Boston, Massachusetts. Co-founder Jason Robins serves as the company's chief executive officer.

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