DraftKings (NASDAQ:DKNG) Stock Price Down 5.5% – Here’s Why

DraftKings Inc. (NASDAQ:DKNG) shares were down 5.5% during trading on Tuesday . The stock traded as low as $38.44 and last traded at $38.29. Approximately 7,185,981 shares were traded during mid-day trading, a decline of 32% from the average daily volume of 10,495,766 shares. The stock had previously closed at $40.52.

Analyst Ratings Changes

DKNG has been the topic of a number of recent analyst reports. Wells Fargo & Company upped their price objective on DraftKings from $53.00 to $60.00 and gave the stock an “overweight” rating in a report on Tuesday, February 18th. Susquehanna lowered their price target on shares of DraftKings from $56.00 to $54.00 and set a “positive” rating on the stock in a research note on Wednesday, January 8th. Cowen reiterated a “buy” rating on shares of DraftKings in a report on Tuesday, February 4th. Barclays boosted their price objective on shares of DraftKings from $50.00 to $60.00 and gave the stock an “overweight” rating in a report on Tuesday, February 18th. Finally, BTIG Research set a $59.00 price target on shares of DraftKings in a research report on Monday, February 3rd. Three equities research analysts have rated the stock with a hold rating and twenty-five have assigned a buy rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $54.44.

DraftKings Stock Performance

The company has a market cap of $18.15 billion, a PE ratio of -34.94, a P/E/G ratio of 1.43 and a beta of 2.07. The stock’s 50 day simple moving average is $42.14 and its two-hundred day simple moving average is $40.35. The company has a quick ratio of 1.00, a current ratio of 0.93 and a debt-to-equity ratio of 1.24.

DraftKings (NASDAQ:DKNG) last issued its earnings results 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 48.13%. As a group, research analysts anticipate that DraftKings Inc. will post 0.64 earnings per share for the current year.

Insider Activity at DraftKings

In related news, insider Paul Liberman sold 200,000 shares of the business’s stock in a transaction that occurred 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 directly owns 1,342,722 shares of the company’s stock, valued at approximately $52,366,158. The trade was a 12.96 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, insider R Stanton Dodge sold 52,777 shares of the stock in a transaction that occurred on Monday, March 17th. The shares were sold at an average price of $39.00, for a total transaction of $2,058,303.00. Following the completion of the sale, the insider now directly owns 653,843 shares of the company’s stock, valued at $25,499,877. This trade represents a 7.47 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 2,131,871 shares of company stock worth $92,171,123. Company insiders own 51.19% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Beacon Pointe Advisors LLC lifted its holdings in DraftKings by 1.9% in the 4th quarter. Beacon Pointe Advisors LLC now owns 10,699 shares of the company’s stock worth $398,000 after buying an additional 203 shares in the last quarter. Nissay Asset Management Corp Japan ADV grew its stake in DraftKings by 0.3% during the 4th quarter. Nissay Asset Management Corp Japan ADV now owns 77,696 shares of the company’s stock valued at $2,946,000 after purchasing an additional 217 shares in the last quarter. Pine Valley Investments Ltd Liability Co increased its holdings in DraftKings by 3.7% during the 3rd quarter. Pine Valley Investments Ltd Liability Co now owns 6,924 shares of the company’s stock worth $271,000 after purchasing an additional 249 shares during the last quarter. Claro Advisors LLC boosted its stake in shares of DraftKings by 1.5% during the 4th quarter. Claro Advisors LLC now owns 18,093 shares of the company’s stock valued at $673,000 after buying an additional 264 shares during the last quarter. Finally, Allworth Financial LP grew its position in shares of DraftKings by 8.0% during the fourth quarter. Allworth Financial LP now owns 3,659 shares of the company’s stock worth $150,000 after buying an additional 271 shares in the last quarter. 37.70% of the stock is owned by institutional investors and hedge funds.

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.