DraftKings (NASDAQ:DKNG – Free Report) had its target price decreased by Canaccord Genuity Group from $40.00 to $30.00 in a research report report published on Monday,Benzinga reports. Canaccord Genuity Group currently has a buy rating on the stock.
A number of other research firms have also weighed in on DKNG. BTIG Research decreased their price target on DraftKings from $26.00 to $23.00 and set a “buy” rating for the company in a research report on Monday. Mizuho cut their price objective on DraftKings from $45.00 to $35.00 and set an “outperform” rating on the stock in a report on Monday. TD Cowen reduced their price objective on shares of DraftKings from $35.00 to $25.00 and set a “buy” rating for the company in a research note on Monday. Benchmark upped their price objective on shares of DraftKings from $29.00 to $30.00 and gave the company a “buy” rating in a research note on Friday, August 7th. Finally, UBS Group cut shares of DraftKings from a “buy” rating to a “neutral” rating and decreased their target price for the stock from $48.00 to $22.00 in a report on Monday. One analyst has rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, ten have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, DraftKings currently has an average rating of “Moderate Buy” and a consensus target price of $27.61.
View Our Latest Analysis on DraftKings
DraftKings Price Performance
Shares of NASDAQ DKNG opened at $19.64 on Monday. The company has a debt-to-equity ratio of 12.21, a current ratio of 0.99 and a quick ratio of 1.02. The firm has a market capitalization of $9.79 billion, a PE ratio of -24.55, a P/E/G ratio of 2.54 and a beta of 1.65. DraftKings has a 1-year low of $16.55 and a 1-year high of $36.98. The business’s fifty day moving average price is $21.20 and its two-hundred day moving average price is $23.88.
DraftKings (NASDAQ:DKNG – Get Free Report) last announced its quarterly earnings results on Thursday, November 5th. The company reported ($0.53) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.41) by ($0.12). The business had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.39 billion. DraftKings had a negative return on equity of 43.92% and a negative net margin of 5.91%. The company’s revenue was up 16.2% compared to the same quarter last year. During the same quarter last year, the firm posted ($0.26) EPS. On average, research analysts expect that DraftKings will post 0.31 EPS for the current year.
Insiders Place Their Bets
In other news, CFO Alan Ellingson bought 18,908 shares of the firm’s stock in a transaction that occurred on Monday, November 9th. The shares were acquired at an average cost of $18.51 per share, with a total value of $349,987.08. Following the completion of the transaction, the chief financial officer directly owned 214,692 shares in the company, valued at $3,973,948.92. This represents a 9.66% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Jocelyn Moore sold 10,759 shares of DraftKings stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $24.05, for a total transaction of $258,753.95. Following the sale, the director owned 1,881 shares in the company, valued at $45,238.05. This represents a 85.12% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 47.18% of the company’s stock.
Institutional Investors Weigh In On DraftKings
Institutional investors and hedge funds have recently made changes to their positions in the company. Private Advisor Group LLC lifted its position in DraftKings by 11.0% during the 3rd quarter. Private Advisor Group LLC now owns 74,437 shares of the company’s stock valued at $1,414,000 after purchasing an additional 7,356 shares during the period. Edgestream Partners L.P. bought a new stake in shares of DraftKings in the 3rd quarter valued at $870,000. HighTower Advisors LLC increased its holdings in shares of DraftKings by 5.0% in the third quarter. HighTower Advisors LLC now owns 134,098 shares of the company’s stock worth $2,548,000 after acquiring an additional 6,403 shares in the last quarter. Ibex Investors LLC raised its holdings in DraftKings by 92.3% during the 3rd quarter. Ibex Investors LLC now owns 125,000 shares of the company’s stock worth $2,375,000 after buying an additional 60,000 shares during the period. Finally, Machina Capital S.A.S. bought a new stake in DraftKings in the 3rd quarter valued at $224,000. Institutional investors own 37.70% of the company’s stock.
Key DraftKings News
These are some of the DKNG news items that stood out recently:
- Positive Sentiment: CFO Alan Ellingson bought 18,908 shares for about $350,000, increasing his holdings by 9.66%. The purchase may signal confidence in the business, although it does not address concerns about profitability or the outlook. Insider purchase report
- Negative Sentiment: The main concern is the expense and uncertain economics of DraftKings’ Predictions business. An investigation by Levi & Korsinsky questions whether SEC filings adequately disclosed the investment’s costs before the company cited a $650 million to $700 million commitment. The inquiry is an allegation, not a finding of wrongdoing. Levi & Korsinsky investigation notice
- Negative Sentiment: Rosen Law Firm also announced an investigation into potential securities claims, alleging DraftKings may have provided materially misleading business information. The announcement creates a legal overhang but does not establish that the claims have merit. Rosen Law Firm investigation notice
About DraftKings
DraftKings Inc. is a digital sports and entertainment company founded in 2012. It began as a daily fantasy sports platform and has since expanded into online sports betting and gaming. The company offers daily fantasy contests, a sportsbook and online casino products, including games such as slots and table games. Its services are available in a range of U.S. jurisdictions and in Ontario, Canada, where permitted by local regulations. DraftKings is headquartered in Boston, Massachusetts. Co-founder Jason Robins serves as the company’s chief executive officer.
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