DraftKings (NASDAQ:DKNG) Trading Down 5.1% – What’s Next?

Shares of DraftKings Inc. (NASDAQ:DKNG) were down 5.1% on Monday . The stock traded as low as $38.25 and last traded at $38.28. Approximately 1,721,669 shares were traded during mid-day trading, a decline of 83% from the average daily volume of 10,118,333 shares. The stock had previously closed at $40.35.

Analyst Upgrades and Downgrades

Several research firms recently commented on DKNG. Morgan Stanley raised their target price on DraftKings from $47.00 to $48.00 and gave the stock an “overweight” rating in a research report on Tuesday, October 22nd. BMO Capital Markets reissued an “outperform” rating and set a $48.00 price target on shares of DraftKings in a report on Wednesday, October 16th. JMP Securities increased their target price on DraftKings from $51.00 to $52.00 and gave the stock a “market outperform” rating in a report on Monday, November 11th. Mizuho boosted their target price on shares of DraftKings from $54.00 to $62.00 and gave the stock an “outperform” rating in a research note on Friday, October 18th. Finally, UBS Group increased their price target on shares of DraftKings from $56.00 to $58.00 and gave the company a “buy” rating in a research note on Wednesday, September 4th. Three research analysts have rated the stock with a hold rating and twenty-three have assigned a buy rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $51.00.

DraftKings Stock Performance

The stock has a 50 day moving average price of $40.25 and a two-hundred day moving average price of $38.12. The company has a market cap of $33.97 billion, a P/E ratio of -43.83 and a beta of 1.87. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 1.17.

DraftKings (NASDAQ:DKNG) last posted its quarterly earnings data on Thursday, November 7th. The company reported ($0.60) EPS for the quarter, missing analysts’ consensus estimates of ($0.42) by ($0.18). DraftKings had a negative return on equity of 41.23% and a negative net margin of 9.06%. The company had revenue of $1.10 billion for the quarter, compared to the consensus estimate of $1.12 billion. On average, research analysts predict that DraftKings Inc. will post -0.79 earnings per share for the current fiscal year.

Insider Transactions at DraftKings

In related news, insider Jason Robins sold 3,151 shares of the business’s stock in a transaction on Thursday, November 21st. The shares were sold at an average price of $43.71, for a total value of $137,730.21. Following the sale, the insider now owns 2,631,033 shares of the company’s stock, valued at $115,002,452.43. The trade was a 0.12 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider R Stanton Dodge sold 228,496 shares of the company’s stock in a transaction dated Monday, December 9th. The shares were sold at an average price of $42.74, for a total value of $9,765,919.04. Following the completion of the sale, the insider now owns 541,884 shares in the company, valued at $23,160,122.16. This trade represents a 29.66 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 320,088 shares of company stock valued at $13,123,786. Corporate insiders own 48.94% of the company’s stock.

Institutional Trading of DraftKings

Several large investors have recently modified their holdings of the stock. Marshall Wace LLP lifted its stake in shares of DraftKings by 53.3% in the second quarter. Marshall Wace LLP now owns 9,410,431 shares of the company’s stock valued at $359,196,000 after buying an additional 3,269,932 shares in the last quarter. Geode Capital Management LLC boosted its holdings in shares of DraftKings by 3.7% in the 3rd quarter. Geode Capital Management LLC now owns 7,985,021 shares of the company’s stock worth $312,361,000 after buying an additional 284,131 shares during the last quarter. FMR LLC increased its holdings in DraftKings by 14.7% during the third quarter. FMR LLC now owns 6,467,066 shares of the company’s stock worth $253,509,000 after buying an additional 826,626 shares during the last quarter. Massachusetts Financial Services Co. MA boosted its stake in DraftKings by 8.3% in the second quarter. Massachusetts Financial Services Co. MA now owns 5,777,271 shares of the company’s stock valued at $220,518,000 after acquiring an additional 441,975 shares during the last quarter. Finally, Fred Alger Management LLC lifted its stake in DraftKings by 46.6% in the third quarter. Fred Alger Management LLC now owns 4,643,852 shares of the company’s stock valued at $182,039,000 after purchasing an additional 1,476,003 shares during the last quarter. Institutional investors and hedge funds 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.