Wells Fargo & Company Forecasts Strong Price Appreciation for DraftKings (NASDAQ:DKNG) Stock

DraftKings (NASDAQ:DKNG) had its target price boosted by equities research analysts at Wells Fargo & Company from $53.00 to $60.00 in a research note issued to investors on Tuesday,Benzinga reports. The brokerage presently has an “overweight” rating on the stock. Wells Fargo & Company‘s target price would indicate a potential upside of 13.99% from the company’s current price.

Several other equities research analysts also recently weighed in on the stock. Benchmark raised their price target on shares of DraftKings from $44.00 to $51.00 and gave the company a “buy” rating in a research report on Friday. Susquehanna reduced their price target on shares of DraftKings from $56.00 to $54.00 and set a “positive” rating for the company in a research report on Wednesday, January 8th. Truist Financial lifted their target price on shares of DraftKings from $50.00 to $60.00 and gave the stock a “buy” rating in a research report on Tuesday. JPMorgan Chase & Co. lifted their target price on shares of DraftKings from $47.00 to $53.00 and gave the stock an “overweight” rating in a research report on Friday, December 13th. Finally, Barclays lifted their target price on shares of DraftKings from $50.00 to $60.00 and gave the stock an “overweight” rating in a research report on Tuesday. Three equities research analysts have rated the stock with a hold rating and twenty-four have given a buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $53.38.

DraftKings Stock Performance

Shares of DKNG opened at $52.64 on Tuesday. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.00 and a quick ratio of 1.00. DraftKings has a one year low of $28.69 and a one year high of $54.10. The company has a 50-day simple moving average of $40.76 and a two-hundred day simple moving average of $38.89. The firm has a market capitalization of $25.67 billion, a PE ratio of -59.81, a price-to-earnings-growth ratio of 3.18 and a beta of 1.93.

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 the consensus estimate of $0.07 by ($0.35). DraftKings had a negative net margin of 9.06% and a negative return on equity of 41.23%. On average, analysts anticipate that DraftKings will post -0.95 EPS for the current fiscal year.

Insider Activity at DraftKings

In other DraftKings news, insider Paul Liberman sold 532,095 shares of the company’s stock in a transaction dated 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 transaction, the insider now directly owns 68,654 shares in the company, valued at $2,629,448.20. This represents a 88.57 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Jason Robins sold 3,151 shares of the company’s stock in a transaction dated Thursday, November 21st. The stock was sold at an average price of $43.71, for a total transaction of $137,730.21. Following the completion of the transaction, the insider now owns 2,631,033 shares in the company, valued at $115,002,452.43. This represents a 0.12 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 1,163,742 shares of company stock worth $47,082,888. Insiders own 51.19% of the company’s stock.

Institutional Investors Weigh In On DraftKings

Several hedge funds have recently modified their holdings of the business. Raiffeisen Bank International AG purchased a new stake in DraftKings during the fourth quarter valued at approximately $25,000. Stonebridge Financial Group LLC purchased a new position in shares of DraftKings in the fourth quarter worth $28,000. Point72 Asia Singapore Pte. Ltd. purchased a new position in shares of DraftKings in the fourth quarter worth $28,000. Synergy Asset Management LLC purchased a new position in shares of DraftKings in the fourth quarter worth $30,000. Finally, Synergy Investment Management LLC purchased a new position in shares of DraftKings in the fourth quarter worth $37,000. 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.