Traders Buy Large Volume of DraftKings Call Options (NASDAQ:DKNG)

DraftKings Inc. (NASDAQ:DKNG) was the recipient of unusually large options trading activity on Tuesday. Traders purchased 72,898 call options on the stock. This represents an increase of approximately 37% compared to the average volume of 53,170 call options.

DraftKings Stock Down 0.6 %

Shares of DKNG traded down $0.23 on Tuesday, hitting $41.16. 7,515,602 shares of the stock traded hands, compared to its average volume of 7,472,533. The company has a debt-to-equity ratio of 1.17, a quick ratio of 1.00 and a current ratio of 1.00. DraftKings has a one year low of $28.69 and a one year high of $49.57. The company has a market capitalization of $36.24 billion, a PE ratio of -46.75, a P/E/G ratio of 3.14 and a beta of 1.93. The business has a 50 day simple moving average of $40.43 and a 200 day simple moving average of $38.26.

DraftKings (NASDAQ:DKNG) last issued its earnings results on Thursday, November 7th. The company reported ($0.60) earnings per share for the quarter, missing the consensus estimate 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 firm had revenue of $1.10 billion during the quarter, compared to the consensus estimate of $1.12 billion. As a group, equities analysts forecast that DraftKings will post -0.93 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Paul Liberman sold 200,000 shares of the company’s stock in a transaction on Friday, January 10th. The stock was sold at an average price of $39.00, for a total transaction of $7,800,000.00. Following the transaction, the insider now owns 1,342,722 shares of the company’s stock, valued at $52,366,158. This represents a 12.96 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Jason Robins sold 3,151 shares of the stock in a transaction dated Thursday, November 21st. The stock was sold at an average price of $43.71, for a total value of $137,730.21. Following the completion of the sale, the insider now owns 2,631,033 shares of the company’s stock, valued at $115,002,452.43. This trade represents a 0.12 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 963,742 shares of company stock worth $38,082,888. 48.94% of the stock is owned by insiders.

Hedge Funds Weigh In On DraftKings

Institutional investors have recently modified their holdings of the stock. Stonebridge Financial Group LLC purchased a new position in DraftKings in the fourth quarter valued at $28,000. Synergy Asset Management LLC acquired a new position in DraftKings during the fourth quarter worth about $30,000. Delos Wealth Advisors LLC acquired a new position in DraftKings in the 3rd quarter valued at about $43,000. V Square Quantitative Management LLC acquired a new position in DraftKings in the 3rd quarter valued at about $46,000. Finally, Creative Financial Designs Inc. ADV boosted its holdings in DraftKings by 36.8% in the 3rd quarter. Creative Financial Designs Inc. ADV now owns 1,190 shares of the company’s stock valued at $47,000 after purchasing an additional 320 shares during the last quarter. 37.70% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of brokerages recently weighed in on DKNG. BMO Capital Markets restated an “outperform” rating and set a $48.00 price objective on shares of DraftKings in a research report on Wednesday, October 16th. Wells Fargo & Company boosted their price objective on DraftKings from $47.00 to $52.00 and gave the company an “overweight” rating in a research note on Thursday, October 17th. Needham & Company LLC reaffirmed a “buy” rating and issued a $60.00 target price on shares of DraftKings in a research report on Friday, November 8th. Morgan Stanley boosted their target price on DraftKings from $47.00 to $48.00 and gave the company an “overweight” rating in a research report on Tuesday, October 22nd. Finally, Barclays boosted their target price on DraftKings from $45.00 to $50.00 and gave the company an “overweight” rating in a research report on Monday, November 11th. Three equities research analysts have rated the stock with a hold rating and twenty-three have issued a buy rating to the stock. According to data from MarketBeat.com, DraftKings has a consensus rating of “Moderate Buy” and a consensus target price of $51.08.

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.