Wells Fargo & Company Cuts DraftKings (NASDAQ:DKNG) Price Target to $29.00

Key Points

• Wells Fargo lowered DraftKings’ price target from $32 to $29 while maintaining an “overweight” rating, implying about 16% upside from the prior close.
• Other analysts remain generally constructive on the stock, with recent actions including UBS raising its target to $49 and the broader consensus still at a Moderate Buy with a $34.46 average target.
• DraftKings recently reported quarterly revenue of $1.65 billion, beating expectations, but EPS missed estimates at $0.20 versus $0.22 expected; the company also saw notable insider selling in recent months.

DraftKings (NASDAQ:DKNG - Get Free Report) had its price target reduced by stock analysts at Wells Fargo & Company from $32.00 to $29.00 in a research report issued to clients and investors on Monday,Benzinga reports. The brokerage presently has an "overweight" rating on the stock. Wells Fargo & Company's target price points to a potential upside of 16.28% from the company's previous close.

Other equities analysts also recently issued reports about the stock. UBS Group upped their price target on shares of DraftKings from $43.00 to $49.00 and gave the company a "buy" rating in a research note on Friday, June 5th. Raymond James Financial upgraded shares of DraftKings from a "market perform" rating to an "outperform" rating in a research note on Friday, April 24th. Freedom Capital upgraded shares of DraftKings to a "strong-buy" rating in a research report on Wednesday, May 20th. Morgan Stanley restated an "overweight" rating on shares of DraftKings in a research report on Thursday, May 21st. Finally, New Street Research set a $29.00 price target on shares of DraftKings in a research report on Monday, June 1st. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $34.46.

DraftKings Stock Performance

NASDAQ:DKNG opened at $24.94 on Monday. The stock has a 50 day simple moving average of $25.81 and a 200 day simple moving average of $26.09. The stock has a market cap of $12.37 billion, a P/E ratio of 415.67 and a beta of 1.65. DraftKings has a 1-year low of $20.46 and a 1-year high of $48.78. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 3.03.

DraftKings (NASDAQ:DKNG - Get Free Report) last issued its quarterly earnings data on Friday, May 8th. The company reported $0.20 EPS for the quarter, missing analysts' consensus estimates of $0.22 by ($0.02). DraftKings had a net margin of 0.93% and a return on equity of 13.51%. The firm had revenue of $1.65 billion during the quarter, compared to analyst estimates of $1.63 billion. During the same period in the prior year, the company earned ($0.07) earnings per share. The business's quarterly revenue was up 16.8% compared to the same quarter last year. Research analysts anticipate that DraftKings will post 0.54 earnings per share for the current year.

Insider Transactions at DraftKings

In other news, Director Woodrow Levin sold 34,234 shares of the company's stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $25.71, for a total transaction of $880,156.14. Following the completion of the sale, the director owned 29,820 shares of the company's stock, valued at approximately $766,672.20. This represents a 53.45% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider R Stanton Dodge sold 62,500 shares of the stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $29.68, for a total transaction of $1,855,000.00. Following the sale, the insider owned 556,258 shares in the company, valued at $16,509,737.44. This represents a 10.10% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 97,596 shares of company stock valued at $2,756,991. 47.18% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Dagco Inc. bought a new position in shares of DraftKings in the 4th quarter valued at $26,000. Ascentis Independent Advisors bought a new stake in shares of DraftKings during the 1st quarter worth $27,000. Basecamp Wealth Advisors LLC boosted its stake in DraftKings by 3,547.1% in the first quarter. Basecamp Wealth Advisors LLC now owns 1,240 shares of the company's stock valued at $27,000 after buying an additional 1,206 shares in the last quarter. CoreCap Advisors LLC boosted its stake in DraftKings by 336.5% in the second quarter. CoreCap Advisors LLC now owns 1,148 shares of the company's stock valued at $29,000 after buying an additional 885 shares in the last quarter. Finally, Montag A & Associates Inc. grew its position in DraftKings by 82.5% in the fourth quarter. Montag A & Associates Inc. now owns 1,106 shares of the company's stock valued at $38,000 after acquiring an additional 500 shares during the last quarter. 37.70% of the stock is currently owned by institutional investors and hedge funds.

About DraftKings

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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