DraftKings (NASDAQ:DKNG) Trading Down 5.2% – Here’s Why

DraftKings Inc. (NASDAQ:DKNG) shares fell 5.2% during mid-day trading on Tuesday . The stock traded as low as $51.27 and last traded at $50.72. 5,697,972 shares traded hands during trading, a decline of 39% from the average session volume of 9,283,876 shares. The stock had previously closed at $53.49.

Analyst Ratings Changes

A number of research firms recently weighed in on DKNG. TD Cowen cut their target price on shares of DraftKings from $55.00 to $51.00 and set a “buy” rating for the company in a report on Tuesday, February 4th. Needham & Company LLC reissued a “buy” rating and issued a $60.00 price objective on shares of DraftKings in a research note on Friday, February 14th. Truist Financial upped their target price on shares of DraftKings from $50.00 to $60.00 and gave the company a “buy” rating in a research report on Tuesday. Canaccord Genuity Group lifted their price target on DraftKings from $54.00 to $60.00 and gave the stock a “buy” rating in a research report on Friday, February 14th. Finally, Barclays upped their price objective on DraftKings from $50.00 to $60.00 and gave the company an “overweight” rating in a research report on Tuesday. Three investment analysts have rated the stock with a hold rating and twenty-four have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $53.69.

DraftKings Stock Down 2.6 %

The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 1.17. The company has a market cap of $24.22 billion, a P/E ratio of -46.64, a P/E/G ratio of 2.06 and a beta of 1.93. The business’s 50 day moving average is $41.14 and its 200 day moving average is $39.11.

DraftKings (NASDAQ:DKNG) last issued its quarterly earnings data on Thursday, February 13th. The company reported ($0.28) earnings per share for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.35). DraftKings had a negative net margin of 10.64% and a negative return on equity of 47.48%. As a group, equities analysts anticipate that DraftKings Inc. will post 0.46 earnings per share for the current fiscal year.

Insider Transactions at DraftKings

In related news, insider Paul Liberman sold 200,000 shares of the firm’s stock in a transaction on Friday, January 10th. The shares were sold at an average price of $39.00, for a total transaction of $7,800,000.00. Following the completion of the transaction, the insider now owns 1,342,722 shares of the company’s stock, valued at $52,366,158. This trade represents a 12.96 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider R Stanton Dodge sold 228,496 shares of DraftKings 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 transaction, the insider now owns 541,884 shares of the company’s stock, valued at $23,160,122.16. The trade was a 29.66 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 1,160,591 shares of company stock valued at $46,945,158. Corporate insiders own 51.19% of the company’s stock.

Institutional Investors Weigh In On DraftKings

Hedge funds have recently bought and sold shares of the stock. Principal Financial Group Inc. boosted its holdings in DraftKings by 14.6% during the third quarter. Principal Financial Group Inc. now owns 234,768 shares of the company’s stock worth $9,203,000 after buying an additional 29,991 shares in the last quarter. Mizuho Securities USA LLC acquired a new position in shares of DraftKings in the third quarter worth about $28,028,000. Janney Montgomery Scott LLC boosted its stake in shares of DraftKings by 51.6% during the 3rd quarter. Janney Montgomery Scott LLC now owns 378,227 shares of the company’s stock worth $14,826,000 after acquiring an additional 128,676 shares in the last quarter. Charles Schwab Investment Management Inc. grew its position in shares of DraftKings by 2.8% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 3,175,255 shares of the company’s stock valued at $124,470,000 after acquiring an additional 86,336 shares during the period. Finally, Connor Clark & Lunn Investment Management Ltd. increased its stake in shares of DraftKings by 238.6% in the 3rd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 496,971 shares of the company’s stock valued at $19,481,000 after purchasing an additional 350,215 shares in the last quarter. Hedge funds and other 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.