DraftKings (NASDAQ:DKNG) Stock Rating Upgraded by Wall Street Zen

Key Points

• Wall Street Zen upgraded DraftKings from a "hold" rating to a "buy" rating, further boosting sentiment around the stock amidst a favorable environment with football season approaching.
• DraftKings recently reported a quarterly earnings of $0.30 per share, significantly exceeding analysts' expectations of $0.16, with a revenue increase of 36.9% year-over-year.
• Currently, DraftKings has an average analyst rating of "Moderate Buy" and a consensus price target of $55.12, with 24 analysts advocating a buy and only one issuing a hold rating.

DraftKings (NASDAQ:DKNG - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued to investors on Saturday.

Other equities research analysts have also recently issued reports about the stock. Stifel Nicolaus dropped their target price on shares of DraftKings from $53.00 to $51.00 and set a "buy" rating for the company in a research report on Wednesday, July 16th. Truist Financial raised their price objective on shares of DraftKings from $50.00 to $55.00 and gave the company a "buy" rating in a research note on Wednesday, July 16th. Citigroup reiterated a "buy" rating on shares of DraftKings in a research note on Friday, July 11th. JMP Securities cut their target price on shares of DraftKings from $54.00 to $50.00 and set a "market outperform" rating for the company in a research report on Thursday, June 5th. Finally, Benchmark boosted their target price on shares of DraftKings from $50.00 to $53.00 and gave the company a "buy" rating in a research report on Thursday, August 7th. Twenty-four investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, DraftKings presently has a consensus rating of "Moderate Buy" and an average target price of $55.12.

DraftKings Trading Up 1.2%

Shares of NASDAQ:DKNG traded up $0.54 on Friday, hitting $43.99. The company had a trading volume of 3,916,718 shares, compared to its average volume of 10,034,022. The firm's 50-day simple moving average is $45.07 and its two-hundred day simple moving average is $39.68. DraftKings has a 1 year low of $29.64 and a 1 year high of $53.61. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 1.82. The firm has a market capitalization of $21.84 billion, a price-to-earnings ratio of -67.54, a P/E/G ratio of 1.03 and a beta of 1.73.

DraftKings (NASDAQ:DKNG - Get Free Report) last posted its earnings results on Thursday, August 7th. The company reported $0.30 EPS for the quarter, topping the consensus estimate of $0.16 by $0.14. DraftKings had a negative net margin of 5.63% and a negative return on equity of 30.06%. The firm had revenue of $1.51 billion during the quarter, compared to analysts' expectations of $1.39 billion. During the same period last year, the company posted $0.12 EPS. The company's quarterly revenue was up 36.9% compared to the same quarter last year. DraftKings has set its FY 2025 guidance at EPS. Equities analysts anticipate that DraftKings will post 0.64 earnings per share for the current fiscal year.

Insider Transactions at DraftKings

In other DraftKings news, CFO Alan Wayne Ellingson sold 44,693 shares of the firm's stock in a transaction on Tuesday, August 19th. The stock was sold at an average price of $44.90, for a total value of $2,006,715.70. Following the transaction, the chief financial officer owned 128,131 shares in the company, valued at approximately $5,753,081.90. This trade represents a 25.86% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Jocelyn Moore sold 4,861 shares of DraftKings stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $43.21, for a total value of $210,043.81. Following the completion of the transaction, the director directly owned 1,461 shares of the company's stock, valued at approximately $63,129.81. This represents a 76.89% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 658,331 shares of company stock worth $29,285,365 in the last ninety days. Company insiders own 51.19% of the company's stock.

Institutional Trading of DraftKings

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. IHT Wealth Management LLC lifted its stake in shares of DraftKings by 4.1% in the second quarter. IHT Wealth Management LLC now owns 6,271 shares of the company's stock valued at $269,000 after purchasing an additional 248 shares during the period. Brooklyn Investment Group boosted its position in shares of DraftKings by 7.3% in the first quarter. Brooklyn Investment Group now owns 3,987 shares of the company's stock worth $132,000 after acquiring an additional 270 shares during the last quarter. TD Private Client Wealth LLC boosted its position in shares of DraftKings by 54.4% in the second quarter. TD Private Client Wealth LLC now owns 800 shares of the company's stock worth $34,000 after acquiring an additional 282 shares during the last quarter. Farther Finance Advisors LLC boosted its position in shares of DraftKings by 9.1% in the second quarter. Farther Finance Advisors LLC now owns 3,413 shares of the company's stock worth $146,000 after acquiring an additional 286 shares during the last quarter. Finally, Obermeyer Wealth Partners boosted its position in shares of DraftKings by 3.4% in the first quarter. Obermeyer Wealth Partners now owns 8,930 shares of the company's stock worth $297,000 after acquiring an additional 297 shares during the last quarter. Institutional investors and hedge funds own 37.70% of the company's stock.

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.