DraftKings Inc. (NASDAQ:DKNG) Sees Large Increase in Short Interest

DraftKings Inc. (NASDAQ:DKNG) was the target of a large growth in short interest during the month of December. As of December 31st, there was short interest totalling 22,620,000 shares, a growth of 20.3% from the December 15th total of 18,810,000 shares. Based on an average trading volume of 8,440,000 shares, the days-to-cover ratio is currently 2.7 days.

DraftKings Trading Down 1.0 %

Shares of DraftKings stock traded down $0.39 on Friday, reaching $39.29. 7,138,308 shares of the company were exchanged, compared to its average volume of 6,983,014. DraftKings has a fifty-two week low of $28.69 and a fifty-two week high of $49.57. The firm has a market capitalization of $34.60 billion, a price-to-earnings ratio of -44.65, a price-to-earnings-growth ratio of 2.99 and a beta of 1.90. 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 fifty day moving average price of $40.65 and a 200-day moving average price of $37.97.

DraftKings (NASDAQ:DKNG) last posted its quarterly earnings data on Thursday, November 7th. The company reported ($0.60) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.42) by ($0.18). DraftKings had a negative return on equity of 41.23% and a negative net margin of 9.06%. The company had revenue of $1.10 billion for the quarter, compared to analyst estimates of $1.12 billion. On average, analysts expect that DraftKings will post -0.83 EPS for the current year.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on DKNG shares. JMP Securities reduced their price target on shares of DraftKings from $52.00 to $50.00 and set a “market outperform” rating for the company in a report on Monday, January 6th. Susquehanna decreased their target price 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. Macquarie lifted their price target on DraftKings from $50.00 to $51.00 and gave the company an “outperform” rating in a report on Monday, November 11th. JPMorgan Chase & Co. increased their price objective on DraftKings from $47.00 to $53.00 and gave the stock an “overweight” rating in a report on Friday, December 13th. Finally, Needham & Company LLC reiterated a “buy” rating and set a $60.00 price target on shares of DraftKings in a research report on Friday, November 8th. Three analysts have rated the stock with a hold rating and twenty-three have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $51.08.

Insider Activity

In other DraftKings news, insider Jason Robins sold 3,151 shares of DraftKings 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 completion of the transaction, the insider now directly owns 2,631,033 shares in the company, valued at $115,002,452.43. The trade was a 0.12 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Paul Liberman sold 532,095 shares of the company’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 transaction, the insider now directly owns 68,654 shares of the company’s stock, valued at $2,629,448.20. This trade represents a 88.57 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 1,052,183 shares of company stock worth $41,303,025. 48.94% of the stock is currently owned by insiders.

Institutional Investors Weigh In On DraftKings

Hedge funds have recently made changes to their positions in the company. Principal Financial Group Inc. boosted its position in DraftKings by 14.6% during the 3rd quarter. Principal Financial Group Inc. now owns 234,768 shares of the company’s stock worth $9,203,000 after acquiring an additional 29,991 shares during the period. Mizuho Securities USA LLC purchased a new position in DraftKings during the third quarter valued at approximately $28,028,000. Janney Montgomery Scott LLC lifted its position in DraftKings by 51.6% in the 3rd quarter. Janney Montgomery Scott LLC now owns 378,227 shares of the company’s stock worth $14,826,000 after buying an additional 128,676 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its stake 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 buying an additional 86,336 shares during the period. Finally, Connor Clark & Lunn Investment Management Ltd. grew its holdings in shares of DraftKings by 238.6% during 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 acquiring an additional 350,215 shares in 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.