DraftKings (NASDAQ:DKNG) Trading 2.8% Higher – Still a Buy?

DraftKings Inc. (NASDAQ:DKNG) traded up 2.8% during trading on Wednesday . The stock traded as high as $38.75 and last traded at $38.40. 1,632,003 shares were traded during mid-day trading, a decline of 76% from the average session volume of 6,695,284 shares. The stock had previously closed at $37.36.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on DKNG shares. Susquehanna lowered their price objective on shares of DraftKings from $56.00 to $54.00 and set a “positive” rating on the stock in a research report on Wednesday. Benchmark reissued a “buy” rating and issued a $44.00 price objective on shares of DraftKings in a report on Tuesday. JPMorgan Chase & Co. upped their target price on shares of DraftKings from $47.00 to $53.00 and gave the company an “overweight” rating in a report on Friday, December 13th. Wells Fargo & Company lifted their price target on shares of DraftKings from $47.00 to $52.00 and gave the stock an “overweight” rating in a research note on Thursday, October 17th. Finally, Barclays raised their target price on DraftKings from $45.00 to $50.00 and gave the stock an “overweight” rating in a report on Monday, November 11th. Three 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, DraftKings has an average rating of “Moderate Buy” and an average target price of $51.08.

DraftKings Stock Up 3.0 %

The company has a debt-to-equity ratio of 1.17, a current ratio of 1.00 and a quick ratio of 1.00. The business’s fifty day moving average price is $40.41 and its two-hundred day moving average price is $37.90. The stock has a market capitalization of $34.78 billion, a PE ratio of -44.87 and a beta of 1.90.

DraftKings (NASDAQ:DKNG) last issued its earnings results 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 net margin of 9.06% and a negative return on equity of 41.23%. The firm had revenue of $1.10 billion during the quarter, compared to analysts’ expectations of $1.12 billion. On average, equities research analysts forecast that DraftKings Inc. will post -0.79 EPS for the current fiscal year.

Insider Activity

In other DraftKings news, insider Paul Liberman sold 88,441 shares of the stock in a transaction on Friday, October 25th. The shares were sold at an average price of $36.41, for a total transaction of $3,220,136.81. Following the transaction, the insider now directly owns 1,923,483 shares of the company’s stock, valued at $70,034,016.03. This trade represents a 4.40 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Jason Robins sold 3,151 shares of the business’s stock in a transaction that occurred on Thursday, November 21st. The stock was 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 disclosure for this sale can be found here. Insiders sold a total of 852,183 shares of company stock valued at $33,503,025 in the last three months. 51.19% of the stock is currently owned by corporate insiders.

Institutional Trading of DraftKings

Large investors have recently bought and sold shares of the business. Marshall Wace LLP increased its holdings 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 purchasing an additional 3,269,932 shares during the last quarter. Jupiter Asset Management Ltd. raised its stake in DraftKings by 1,261.7% during the second quarter. Jupiter Asset Management Ltd. now owns 1,612,405 shares of the company’s stock worth $61,545,000 after purchasing an additional 1,493,995 shares during the period. Fred Alger Management LLC boosted its holdings in DraftKings by 46.6% in the 3rd 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. Blue Whale Capital LLP purchased a new stake in shares of DraftKings in the 2nd quarter valued at approximately $39,306,000. Finally, AQR Capital Management LLC increased its holdings in shares of DraftKings by 29.0% during the 2nd quarter. AQR Capital Management LLC now owns 3,877,581 shares of the company’s stock worth $144,905,000 after buying an additional 870,789 shares during the last quarter. Hedge funds and other institutional investors own 37.70% of the company’s stock.

DraftKings Company Profile

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.