DraftKings (NASDAQ:DKNG) Shares Up 7.8% on Analyst Upgrade

Key Points

• DraftKings shares rose 7.8% after Bank of America upgraded the stock from “neutral” to “buy” and set a $27 price target.
• Analyst sentiment remains broadly positive, with a consensus “moderate buy” rating and an average price target of $34.04, despite several firms recently trimming their targets.
• DraftKings exceeded quarterly EPS expectations, reporting $0.09 versus a $0.02 consensus estimate, but revenue of $1.44 billion fell short of estimates and declined 4.6% year over year.

Shares of DraftKings Inc. (NASDAQ:DKNG - Get Free Report) were up 7.8% during mid-day trading on Monday after Bank of America upgraded the stock from a neutral rating to a buy rating. Bank of America now has a $27.00 price target on the stock. DraftKings traded as high as $19.97 and last traded at $20.0360. Approximately 8,160,642 shares traded hands during mid-day trading, a decline of 40% from the average daily volume of 13,531,683 shares. The stock had previously closed at $18.59.

Several other brokerages have also recently issued reports on DKNG. Deutsche Bank Aktiengesellschaft upped their price objective on DraftKings from $26.00 to $28.00 and gave the stock a "hold" rating in a report on Thursday, July 9th. Barclays cut their target price on shares of DraftKings from $35.00 to $34.00 and set an "overweight" rating for the company in a report on Monday, August 10th. Wells Fargo & Company reduced their price target on shares of DraftKings from $32.00 to $29.00 and set an "overweight" rating on the stock in a research report on Monday, July 20th. Susquehanna lowered their price objective on shares of DraftKings from $32.00 to $31.00 and set a "positive" rating for the company in a research report on Wednesday, July 1st. Finally, Sanford C. Bernstein lifted their price objective on shares of DraftKings from $27.00 to $29.00 and gave the stock an "outperform" rating in a research note on Thursday, September 3rd. One investment analyst has rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $34.04.

Insider Buying and Selling at DraftKings

In related news, Director Jocelyn Moore sold 10,759 shares of the stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $24.05, for a total transaction of $258,753.95. Following the sale, the director owned 1,881 shares in the company, valued at approximately $45,238.05. This represents a 85.12% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 47.18% of the company's stock.

Hedge Funds Weigh In On DraftKings

Large investors have recently made changes to their positions in the company. CoreCap Advisors LLC increased its stake in DraftKings by 336.5% in the 2nd quarter. CoreCap Advisors LLC now owns 1,148 shares of the company's stock worth $29,000 after buying an additional 885 shares during the period. Janney Montgomery Scott LLC grew its stake in DraftKings by 2.0% in the 1st quarter. Janney Montgomery Scott LLC now owns 51,855 shares of the company's stock worth $1,121,000 after acquiring an additional 1,028 shares in the last quarter. Cohen Investment Advisors LLC increased its position in shares of DraftKings by 1.3% during the first quarter. Cohen Investment Advisors LLC now owns 86,103 shares of the company's stock worth $1,862,000 after acquiring an additional 1,091 shares during the period. Envestnet Portfolio Solutions Inc. increased its position in shares of DraftKings by 9.0% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 13,744 shares of the company's stock worth $347,000 after acquiring an additional 1,139 shares during the period. Finally, SHP Wealth Management bought a new stake in shares of DraftKings during the fourth quarter valued at approximately $42,000. 37.70% of the stock is owned by hedge funds and other institutional investors.

DraftKings Stock Up 8.4%

The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 3.22. The stock has a market cap of $10.00 billion, a P/E ratio of -52.71, a P/E/G ratio of 1.87 and a beta of 1.61. The company's 50 day moving average price is $23.57 and its two-hundred day moving average price is $24.24.

DraftKings (NASDAQ:DKNG - Get Free Report) last released its quarterly earnings data on Friday, August 7th. The company reported $0.09 EPS for the quarter, topping the consensus estimate of $0.02 by $0.07. DraftKings had a negative return on equity of 11.26% and a negative net margin of 2.68%.The company had revenue of $1.44 billion for the quarter, compared to the consensus estimate of $1.51 billion. During the same period last year, the business posted $0.30 EPS. DraftKings's quarterly revenue was down 4.6% on a year-over-year basis. As a group, research analysts expect that DraftKings Inc. will post 0.4 earnings per share for the current year.

DraftKings Company Profile

DraftKings Inc is a digital sports entertainment and gaming company that provides online sports betting, daily fantasy sports and internet-based casino gaming. Its products are delivered through mobile applications and websites, allowing customers to wager on professional and collegiate sports, participate in fantasy contests and play a range of casino games where permitted by law.

The company also offers sports and betting-related content through DraftKings Network and operates additional gaming and entertainment products, including online lottery services in select markets.

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