JMP Securities Reaffirms Market Outperform Rating for DraftKings (NASDAQ:DKNG)

DraftKings (NASDAQ:DKNG)‘s stock had its “market outperform” rating restated by research analysts at JMP Securities in a report released on Friday,Benzinga reports. They currently have a $50.00 price target on the stock. JMP Securities’ target price points to a potential downside of 2.80% from the company’s previous close.

Several other equities analysts also recently weighed in on the stock. Benchmark reiterated a “buy” rating and issued a $44.00 target price on shares of DraftKings in a research note on Tuesday, January 7th. Macquarie lifted their price objective on shares of DraftKings from $50.00 to $51.00 and gave the company an “outperform” rating in a research note on Monday, November 11th. JPMorgan Chase & Co. increased their target price on DraftKings from $47.00 to $53.00 and gave the stock an “overweight” rating in a research report on Friday, December 13th. Barclays lifted their price target on DraftKings from $45.00 to $50.00 and gave the company an “overweight” rating in a research report on Monday, November 11th. Finally, Mizuho increased their price objective on DraftKings from $54.00 to $62.00 and gave the stock an “outperform” rating in a report on Friday, October 18th. Three analysts have rated the stock with a hold rating and twenty-three have assigned a buy rating to the company’s stock. According to data from MarketBeat, DraftKings presently has a consensus rating of “Moderate Buy” and a consensus price target of $51.31.

DraftKings Stock Performance

Shares of DKNG stock traded up $4.99 during trading hours on Friday, hitting $51.44. 13,664,536 shares of the company were exchanged, compared to its average volume of 8,189,403. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 1.17. The stock has a market capitalization of $25.08 billion, a price-to-earnings ratio of -60.12, a P/E/G ratio of 3.18 and a beta of 1.93. The firm has a fifty day simple moving average of $40.36 and a 200 day simple moving average of $38.62. DraftKings has a 52-week low of $28.69 and a 52-week high of $52.28.

DraftKings (NASDAQ:DKNG) last released its earnings results on Thursday, February 13th. The company reported ($0.28) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.35). DraftKings had a negative return on equity of 41.23% and a negative net margin of 9.06%. Research analysts predict that DraftKings will post -0.95 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider R Stanton Dodge sold 228,496 shares of the firm’s stock in a transaction that occurred on Monday, December 9th. The stock was sold at an average price of $42.74, for a total transaction of $9,765,919.04. Following the transaction, the insider now directly owns 541,884 shares in the company, valued at $23,160,122.16. This trade represents a 29.66 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Paul Liberman sold 532,095 shares of the business’s stock in a transaction that occurred on Thursday, December 26th. The shares were sold at an average price of $38.30, for a total value of $20,379,238.50. Following the completion of the sale, the insider now owns 68,654 shares of the company’s stock, valued at $2,629,448.20. The trade was a 88.57 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 963,742 shares of company stock valued at $38,082,888 over the last three months. Insiders own 51.19% of the company’s stock.

Hedge Funds Weigh In On DraftKings

Hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. increased its holdings in DraftKings by 1.4% during the 4th quarter. Vanguard Group Inc. now owns 43,073,314 shares of the company’s stock valued at $1,602,327,000 after purchasing an additional 584,452 shares during the period. FMR LLC increased its stake in shares of DraftKings by 110.6% during the fourth quarter. FMR LLC now owns 13,617,448 shares of the company’s stock valued at $506,569,000 after buying an additional 7,150,382 shares during the period. Geode Capital Management LLC raised its holdings in shares of DraftKings by 1.1% during the fourth quarter. Geode Capital Management LLC now owns 8,075,009 shares of the company’s stock valued at $299,921,000 after acquiring an additional 89,988 shares in the last quarter. Norges Bank purchased a new stake in DraftKings in the fourth quarter worth $276,328,000. Finally, Massachusetts Financial Services Co. MA boosted its holdings in DraftKings by 18.0% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 6,797,507 shares of the company’s stock valued at $252,867,000 after acquiring an additional 1,036,763 shares in the last quarter. 37.70% of the stock is owned by institutional investors.

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.