DraftKings (NASDAQ:DKNG) Stock Price Up 5.6% - Here's What Happened

Key Points

• DraftKings shares rose 5.6% to $25.58 in Friday trading, with volume significantly below the stock’s average session volume.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $34.11; targets range from $28 to $36 among recent updates.
• The company beat quarterly earnings expectations, reporting $0.09 per share versus the $0.02 consensus estimate, though revenue fell 4.6% year over year and DraftKings remained unprofitable.

DraftKings Inc. (NASDAQ:DKNG - Get Free Report)'s stock price traded up 5.6% during trading on Friday . The company traded as high as $25.67 and last traded at $25.58. Approximately 5,191,186 shares traded hands during mid-day trading, a decline of 61% from the average session volume of 13,474,458 shares. The stock had previously closed at $24.22.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the company. Deutsche Bank Aktiengesellschaft raised their price target on DraftKings from $26.00 to $28.00 and gave the company a "hold" rating in a research report on Thursday, July 9th. Citigroup increased their price target on shares of DraftKings from $30.00 to $32.00 and gave the company a "buy" rating in a research report on Tuesday, August 11th. Needham & Company LLC reiterated a "buy" rating and issued a $35.00 price objective on shares of DraftKings in a research report on Monday, May 11th. Wall Street Zen lowered shares of DraftKings from a "hold" rating to a "sell" rating in a research note on Saturday, August 15th. Finally, Morgan Stanley reduced their target price on DraftKings from $39.00 to $36.00 and set an "overweight" rating on the stock in a report on Thursday, July 23rd. One analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $34.11.

DraftKings Trading Up 6.2%

The firm's 50 day moving average price is $24.89 and its 200-day moving average price is $24.53. 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 market cap of $12.77 billion, a P/E ratio of -67.68 and a beta of 1.66.

DraftKings (NASDAQ:DKNG - Get Free Report) last announced its quarterly earnings results on Friday, August 7th. The company reported $0.09 earnings per share for the quarter, beating the consensus estimate of $0.02 by $0.07. The company had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.51 billion. DraftKings had a negative net margin of 2.68% and a negative return on equity of 11.26%. The firm's quarterly revenue was down 4.6% compared to the same quarter last year. During the same quarter last year, the firm earned $0.30 earnings per share. As a group, equities research analysts forecast that DraftKings Inc. will post 0.51 earnings per share for the current year.

Insider Buying and Selling at DraftKings

In other news, Director Jocelyn Moore sold 10,759 shares of the firm's stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $24.05, for a total value of $258,753.95. Following the transaction, the director directly owned 1,881 shares in the company, valued at $45,238.05. This trade represents a 85.12% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider R Stanton Dodge sold 62,500 shares of the firm's stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $29.68, for a total value of $1,855,000.00. Following the completion of the transaction, the insider directly owned 556,258 shares in the company, valued at $16,509,737.44. The trade was a 10.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 47.18% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. Integrated Wealth Concepts LLC increased its holdings in DraftKings by 5.9% in the 1st quarter. Integrated Wealth Concepts LLC now owns 9,460 shares of the company's stock worth $314,000 after acquiring an additional 524 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of DraftKings by 1,141.0% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 44,044 shares of the company's stock worth $1,463,000 after acquiring an additional 40,495 shares in the last quarter. Empowered Funds LLC raised its stake in DraftKings by 18.0% during the first quarter. Empowered Funds LLC now owns 9,115 shares of the company's stock valued at $303,000 after purchasing an additional 1,391 shares in the last quarter. Sivia Capital Partners LLC bought a new position in shares of DraftKings in the 2nd quarter valued at about $603,000. Finally, Daiwa Securities Group Inc. lifted its stake in shares of DraftKings by 2.2% in the 2nd quarter. Daiwa Securities Group Inc. now owns 44,102 shares of the company's stock valued at $1,892,000 after purchasing an additional 968 shares during the last quarter. Institutional investors own 37.70% of the company's stock.

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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