DraftKings (NASDAQ:DKNG) Trading 6.3% Higher - What's Next?

Key Points

• DraftKings shares rose 6.3% to about $23.35, although trading volume was 81% below the average session level.
• Analysts remain broadly optimistic, with a consensus “Moderate Buy” rating and an average price target of $34.36, well above the recent share price.
• DraftKings beat quarterly EPS estimates but missed revenue expectations: EPS was $0.09 versus $0.02 expected, while revenue fell 4.6% year over year to $1.44 billion.

DraftKings Inc. (NASDAQ:DKNG - Get Free Report)'s stock price traded up 6.3% on Tuesday . The stock traded as high as $23.35 and last traded at $23.3480. Approximately 2,555,564 shares changed hands during trading, a decline of 81% from the average session volume of 13,259,170 shares. The stock had previously closed at $21.97.

Analyst Ratings Changes

A number of research firms have recently issued reports on DKNG. Stifel Nicolaus lowered their price objective on DraftKings from $40.00 to $38.00 and set a "buy" rating on the stock in a research report on Wednesday, July 22nd. Citizens Jmp lifted their price target on shares of DraftKings from $36.00 to $37.00 and gave the stock a "market outperform" rating in a research note on Tuesday, September 8th. TD Cowen boosted their price target on shares of DraftKings from $30.00 to $35.00 and gave the company a "buy" rating in a report on Friday, July 10th. Jefferies Financial Group reissued a "buy" rating on shares of DraftKings in a report on Wednesday, June 10th. Finally, Needham & Company LLC restated a "buy" rating and issued a $35.00 price objective on shares of DraftKings in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $34.36.

DraftKings Trading Up 0.5%

The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 3.22. The stock has a market cap of $10.96 billion, a P/E ratio of -57.89, a price-to-earnings-growth ratio of 1.78 and a beta of 1.63. The business's fifty day simple moving average is $24.23 and its 200 day simple moving average is $24.55.

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

Insider Transactions at DraftKings

In other news, Director Jocelyn Moore sold 10,759 shares of the business's stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $24.05, for a total value of $258,753.95. Following the completion of the transaction, the director 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 Securities & Exchange Commission, which is available at 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.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Renaissance Technologies LLC acquired a new position in shares of DraftKings during the 1st quarter worth about $17,660,000. Spruce House Investment Management LLC lifted its stake in DraftKings by 129.6% in the 1st quarter. Spruce House Investment Management LLC now owns 9,650,000 shares of the company's stock valued at $208,633,000 after purchasing an additional 5,446,166 shares during the last quarter. Janus Henderson Group PLC lifted its stake in DraftKings by 9.3% in the 1st quarter. Janus Henderson Group PLC now owns 27,665,699 shares of the company's stock valued at $588,288,000 after purchasing an additional 2,351,790 shares during the last quarter. Aurora Investment Counsel bought a new position in DraftKings during the fourth quarter worth about $2,157,000. Finally, Capital World Investors grew its holdings in DraftKings by 181.4% during the fourth quarter. Capital World Investors now owns 18,626,429 shares of the company's stock worth $641,867,000 after purchasing an additional 12,008,357 shares during the period. 37.70% of the stock is owned by institutional investors and hedge funds.

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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