Stock Traders Purchase Large Volume of DraftKings Call Options (NASDAQ:DKNG)

DraftKings Inc. (NASDAQ:DKNG - Get Free Report) was the target of unusually large options trading activity on Tuesday. Investors bought 72,898 call options on the company. This represents an increase of 37% compared to the average daily volume of 53,170 call options.

Insiders Place Their Bets

In related news, insider Jason Robins sold 3,151 shares of the company's stock in a transaction dated Thursday, November 21st. The stock was sold at an average price of $43.71, for a total transaction of $137,730.21. Following the transaction, the insider now directly owns 2,631,033 shares of the company's stock, valued at $115,002,452.43. This represents a 0.12 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, insider Paul Liberman sold 532,095 shares of the stock in a transaction dated Thursday, December 26th. The shares were sold at an average price of $38.30, for a total value of $20,379,238.50. Following the completion of the sale, the insider now owns 68,654 shares of the company's stock, valued at approximately $2,629,448.20. This trade represents a 88.57 % decrease in their ownership of the stock. 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. 51.19% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On DraftKings

A number of large investors have recently modified their holdings of the business. Stonebridge Financial Group LLC acquired a new position in DraftKings during the fourth quarter worth about $28,000. Synergy Asset Management LLC acquired a new position in shares of DraftKings during the 4th quarter worth approximately $30,000. Synergy Investment Management LLC purchased a new stake in shares of DraftKings in the fourth quarter valued at approximately $37,000. Delos Wealth Advisors LLC acquired a new stake in shares of DraftKings in the third quarter valued at approximately $43,000. Finally, V Square Quantitative Management LLC purchased a new position in DraftKings during the third quarter worth approximately $46,000. Hedge funds and other institutional investors own 37.70% of the company's stock.

DraftKings Price Performance

Shares of DKNG traded down $0.16 during mid-day trading on Friday, hitting $42.28. 6,533,919 shares of the company were exchanged, compared to its average volume of 7,518,182. The company has a debt-to-equity ratio of 1.17, a quick ratio of 1.00 and a current ratio of 1.00. DraftKings has a 1-year low of $28.69 and a 1-year high of $49.57. The stock has a market cap of $20.62 billion, a price-to-earnings ratio of -48.04, a price-to-earnings-growth ratio of 3.14 and a beta of 1.93. The company has a 50 day moving average of $40.37 and a 200-day moving average of $38.35.

DraftKings (NASDAQ:DKNG - Get Free Report) last issued 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 firm had revenue of $1.10 billion for the quarter, compared to analysts' expectations of $1.12 billion. DraftKings had a negative return on equity of 41.23% and a negative net margin of 9.06%. Analysts expect that DraftKings will post -0.93 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of analysts recently commented on the stock. Morgan Stanley lifted 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. Macquarie boosted their price objective on shares of DraftKings from $50.00 to $51.00 and gave the company an "outperform" rating in a report on Monday, November 11th. Susquehanna reduced their target price on DraftKings from $56.00 to $54.00 and set a "positive" rating for the company in a research note on Wednesday, January 8th. TD Cowen dropped their price target on DraftKings from $55.00 to $51.00 and set a "buy" rating on the stock in a research note on Tuesday. Finally, Barclays raised their price objective on DraftKings from $45.00 to $50.00 and gave the stock an "overweight" rating in a research note on Monday, November 11th. Three equities research analysts have rated the stock with a hold rating and twenty-three have given a buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $50.92.

DraftKings Company Profile

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.