DraftKings (NASDAQ:DKNG) Shares Down 3.7% - What's Next?

Key Points

• DraftKings shares fell 3.7% to about $23.42 in mid-day trading, with volume down 73% from the average. The stock’s market capitalization is approximately $11.35 billion.
• Wall Street remains generally positive, with a consensus rating of “Moderate Buy” and an average price target of $34.39, despite some analysts recently lowering their targets.
• DraftKings beat quarterly EPS expectations, reporting $0.09 versus the $0.02 consensus, but revenue of $1.44 billion missed estimates and declined 4.6% year over year; the company remains unprofitable with a negative net margin.

DraftKings Inc. (NASDAQ:DKNG - Get Free Report)'s share price fell 3.7% during mid-day trading on Thursday . The stock traded as low as $23.41 and last traded at $23.4240. Approximately 3,569,200 shares changed hands during mid-day trading, a decline of 73% from the average daily volume of 13,214,909 shares. The stock had previously closed at $24.33.

Wall Street Analysts Forecast Growth

DKNG has been the topic of several recent research reports. Jefferies Financial Group reiterated a "buy" rating on shares of DraftKings in a research report on Wednesday, June 10th. Benchmark raised their price target on shares of DraftKings from $29.00 to $30.00 and gave the company a "buy" rating in a research note on Friday, August 7th. Susquehanna reduced their price objective on shares of DraftKings from $32.00 to $31.00 and set a "positive" rating on the stock in a research note on Wednesday, July 1st. Truist Financial set a $29.00 price objective on shares of DraftKings in a research note on Monday, August 10th. Finally, Morgan Stanley decreased their price objective on DraftKings from $39.00 to $36.00 and set an "overweight" rating for the company in a report on Thursday, July 23rd. One analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $34.39.

DraftKings Stock Performance

The company has a debt-to-equity ratio of 3.22, a current ratio of 1.02 and a quick ratio of 1.02. The stock has a fifty day simple moving average of $24.49 and a two-hundred day simple moving average of $24.59. The firm has a market capitalization of $11.35 billion, a P/E ratio of -60.32, a P/E/G ratio of 2.01 and a beta of 1.63.

DraftKings (NASDAQ:DKNG - Get Free Report) last posted its quarterly earnings results on Friday, August 7th. The company reported $0.09 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.02 by $0.07. The firm had revenue of $1.44 billion for the quarter, compared to analysts' expectations of $1.51 billion. DraftKings had a negative return on equity of 11.26% and a negative net margin of 2.68%.The company's revenue for the quarter was down 4.6% compared to the same quarter last year. During the same period in the prior year, the business earned $0.30 EPS. On average, research analysts predict that DraftKings Inc. will post 0.49 EPS for the current year.

Insider Activity

In related news, Director Jocelyn Moore sold 10,759 shares of the business's stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $24.05, for a total value of $258,753.95. Following the completion of the sale, the director directly owned 1,881 shares of the company's stock, valued at $45,238.05. The trade was a 85.12% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 47.18% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the business. Renaissance Technologies LLC bought a new stake in DraftKings in the 1st quarter worth $17,660,000. Spruce House Investment Management LLC raised its position in shares of DraftKings by 129.6% in the 1st quarter. Spruce House Investment Management LLC now owns 9,650,000 shares of the company's stock worth $208,633,000 after acquiring an additional 5,446,166 shares in the last quarter. Janus Henderson Group PLC lifted its position 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 buying an additional 2,351,790 shares during the period. Aurora Investment Counsel purchased a new position in DraftKings during the 4th quarter valued at about $2,157,000. Finally, Capital World Investors increased its position in DraftKings by 181.4% during the 4th quarter. Capital World Investors now owns 18,626,429 shares of the company's stock valued at $641,867,000 after buying an additional 12,008,357 shares in the last quarter. 37.70% of the stock is owned by institutional investors.

DraftKings Company Profile

DraftKings Inc is a digital sports entertainment and gaming company that operates online sports betting, iGaming and daily fantasy sports platforms. Its products enable customers to place bets on professional and collegiate sports, play online casino games where permitted, and participate in fantasy contests across a range of sports.

The company also offers related services, including retail sportsbooks in select jurisdictions and sports media content through DraftKings Network. Its offerings are available in U.S.

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