DraftKings (NASDAQ:DKNG) Earns Outperform Rating from BMO Capital Markets

DraftKings (NASDAQ:DKNG)‘s stock had its “outperform” rating reissued by BMO Capital Markets in a research report issued to clients and investors on Wednesday, Benzinga reports. They currently have a $48.00 price target on the stock. BMO Capital Markets’ price objective would suggest a potential upside of 28.17% from the company’s current price.

Other research analysts have also recently issued research reports about the company. JPMorgan Chase & Co. upped their price target on DraftKings from $48.00 to $54.00 and gave the company an “overweight” rating in a report on Thursday, September 26th. Needham & Company LLC reiterated a “buy” rating and issued a $60.00 price target on shares of DraftKings in a research report on Monday, September 23rd. Wells Fargo & Company dropped their price target on DraftKings from $53.00 to $47.00 and set an “overweight” rating on the stock in a research note on Monday, August 5th. JMP Securities reiterated a “market outperform” rating and issued a $51.00 target price on shares of DraftKings in a report on Monday. Finally, Stifel Nicolaus restated a “buy” rating and set a $48.00 price target (down previously from $50.00) on shares of DraftKings in a report on Monday, August 5th. Three research analysts have rated the stock with a hold rating and twenty-four have assigned a buy rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $49.85.

DraftKings Price Performance

DKNG stock traded down $0.69 during trading hours on Wednesday, hitting $37.45. 2,991,043 shares of the stock traded hands, compared to its average volume of 10,396,740. The stock has a 50-day simple moving average of $36.34 and a 200 day simple moving average of $38.75. The company has a market cap of $32.55 billion, a P/E ratio of -31.83 and a beta of 1.81. DraftKings has a one year low of $25.73 and a one year high of $49.57. The company has a current ratio of 1.11, a quick ratio of 1.11 and a debt-to-equity ratio of 0.97.

DraftKings (NASDAQ:DKNG) last posted its quarterly earnings data on Thursday, August 1st. The company reported $0.12 earnings per share for the quarter, beating the consensus estimate of ($0.01) by $0.13. DraftKings had a negative net margin of 9.45% and a negative return on equity of 43.11%. The company had revenue of $1.10 billion during the quarter, compared to analyst estimates of $1.11 billion. During the same quarter last year, the firm posted ($0.17) EPS. The business’s revenue for the quarter was up 26.2% on a year-over-year basis. Equities analysts forecast that DraftKings will post -0.31 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Jason Robins sold 200,000 shares of the stock in a transaction dated Wednesday, August 21st. The stock was sold at an average price of $35.25, for a total transaction of $7,050,000.00. Following the transaction, the insider now owns 2,678,082 shares of the company’s stock, valued at approximately $94,402,390.50. This represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. In other DraftKings news, insider Paul Liberman sold 643,654 shares of the business’s stock in a transaction on Wednesday, September 25th. The shares were sold at an average price of $41.24, for a total transaction of $26,544,290.96. Following the completion of the transaction, the insider now owns 137,308 shares of the company’s stock, valued at $5,662,581.92. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Jason Robins sold 200,000 shares of the firm’s stock in a transaction dated Wednesday, August 21st. The shares were sold at an average price of $35.25, for a total value of $7,050,000.00. Following the completion of the sale, the insider now directly owns 2,678,082 shares in the company, valued at approximately $94,402,390.50. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 1,132,095 shares of company stock valued at $42,890,328 over the last quarter. Insiders own 51.19% of the company’s stock.

Institutional Trading of DraftKings

Several hedge funds have recently added to or reduced their stakes in DKNG. Vanguard Group Inc. lifted its holdings in shares of DraftKings by 1.9% during the first quarter. Vanguard Group Inc. now owns 40,011,855 shares of the company’s stock worth $1,816,938,000 after buying an additional 747,937 shares during the last quarter. Marshall Wace LLP boosted its holdings in DraftKings by 53.3% in the 2nd quarter. Marshall Wace LLP now owns 9,410,431 shares of the company’s stock valued at $359,196,000 after purchasing an additional 3,269,932 shares during the period. Massachusetts Financial Services Co. MA grew its position in DraftKings by 8.3% in the 2nd quarter. Massachusetts Financial Services Co. MA now owns 5,777,271 shares of the company’s stock worth $220,518,000 after purchasing an additional 441,975 shares during the last quarter. Lord Abbett & CO. LLC increased its holdings in shares of DraftKings by 20.6% during the 1st quarter. Lord Abbett & CO. LLC now owns 3,884,680 shares of the company’s stock worth $176,403,000 after purchasing an additional 663,427 shares during the period. Finally, AQR Capital Management LLC raised its position in shares of DraftKings by 29.0% during the second quarter. AQR Capital Management LLC now owns 3,877,581 shares of the company’s stock valued at $144,905,000 after buying an additional 870,789 shares during the last quarter. 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.