DraftKings Inc. (NASDAQ:DKNG) Sees Significant Increase in Short Interest

DraftKings Inc. (NASDAQ:DKNG - Get Free Report) saw a significant increase in short interest in January. As of January 15th, there was short interest totalling 22,620,000 shares, an increase of 20.3% from the December 31st total of 18,810,000 shares. Based on an average trading volume of 8,440,000 shares, the days-to-cover ratio is currently 2.7 days.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the company. Needham & Company LLC restated a "buy" rating and set a $60.00 price target on shares of DraftKings in a research report on Friday, November 8th. Macquarie boosted their price target on shares of DraftKings from $50.00 to $51.00 and gave the stock an "outperform" rating in a research note on Monday, November 11th. Wells Fargo & Company raised their price objective on shares of DraftKings from $47.00 to $52.00 and gave the company an "overweight" rating in a research note on Thursday, October 17th. Morgan Stanley upped their target price on shares of DraftKings from $47.00 to $48.00 and gave the stock an "overweight" rating in a research note on Tuesday, October 22nd. Finally, JMP Securities decreased their price target on shares of DraftKings from $52.00 to $50.00 and set a "market outperform" rating for the company in a research report on Monday, January 6th. Three equities research analysts have rated the stock with a hold rating and twenty-three have issued a buy rating to the company. Based on data from MarketBeat.com, DraftKings currently has a consensus rating of "Moderate Buy" and an average target price of $50.92.

DraftKings Trading Up 1.2 %

Shares of DraftKings stock traded up $0.49 during trading hours on Wednesday, reaching $42.24. 6,321,189 shares of the company's stock were exchanged, compared to its average volume of 7,581,369. The firm has a market capitalization of $37.20 billion, a price-to-earnings ratio of -48.00, a price-to-earnings-growth ratio of 3.14 and a beta of 1.93. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 1.17. DraftKings has a 52-week low of $28.69 and a 52-week high of $49.57. The company has a fifty day moving average of $40.40 and a 200-day moving average of $38.30.

DraftKings (NASDAQ:DKNG - Get Free Report) last posted its quarterly earnings results on Thursday, November 7th. The company reported ($0.60) EPS for the quarter, missing the consensus estimate of ($0.42) by ($0.18). The business had revenue of $1.10 billion during the quarter, compared to analysts' expectations of $1.12 billion. DraftKings had a negative net margin of 9.06% and a negative return on equity of 41.23%. Sell-side analysts forecast that DraftKings will post -0.93 EPS for the current fiscal year.

Insider Activity at DraftKings

In other news, insider Jason Robins sold 3,151 shares of the firm's stock in a transaction dated Thursday, November 21st. The shares were sold at an average price of $43.71, for a total value of $137,730.21. Following the transaction, the insider now directly owns 2,631,033 shares of the company's stock, valued at approximately $115,002,452.43. This trade represents a 0.12 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, insider Paul Liberman sold 532,095 shares of the company's stock in a transaction dated Thursday, December 26th. The shares were sold at an average price of $38.30, for a total transaction of $20,379,238.50. Following the sale, the insider now directly owns 68,654 shares of the company's stock, valued at approximately $2,629,448.20. This represents a 88.57 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 963,742 shares of company stock worth $38,082,888. 48.94% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On DraftKings

Large investors have recently bought and sold shares of the stock. The Manufacturers Life Insurance Company boosted its holdings in DraftKings by 2.0% in the second quarter. The Manufacturers Life Insurance Company now owns 24,621 shares of the company's stock valued at $940,000 after acquiring an additional 487 shares during the last quarter. Mackenzie Financial Corp grew its holdings in shares of DraftKings by 5.4% during the 2nd quarter. Mackenzie Financial Corp now owns 23,356 shares of the company's stock worth $891,000 after purchasing an additional 1,195 shares during the period. NewEdge Advisors LLC raised its holdings in DraftKings by 2.1% in the second quarter. NewEdge Advisors LLC now owns 43,191 shares of the company's stock valued at $1,649,000 after buying an additional 902 shares during the period. Northwestern Mutual Wealth Management Co. lifted its position in DraftKings by 5.6% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 35,916 shares of the company's stock valued at $1,371,000 after buying an additional 1,902 shares in the last quarter. Finally, Quarry LP acquired a new stake in shares of DraftKings in the second quarter worth $87,000. Hedge funds and other institutional investors own 37.70% of the company's stock.

About DraftKings

DraftKings Inc operates as a digital sports entertainment and gaming company in the United States and internationally. It provides online sports betting and casino, daily fantasy sports, media, and other consumer products, as well as retails sportsbooks. The company also engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators.