DraftKings (NASDAQ:DKNG) Stock Price Expected to Rise, Morgan Stanley Analyst Says

DraftKings (NASDAQ:DKNG) had its price target raised by analysts at Morgan Stanley from $49.00 to $53.00 in a research report issued to clients and investors on Monday,Benzinga reports. The brokerage currently has an “overweight” rating on the stock. Morgan Stanley’s price target would indicate a potential upside of 16.62% from the company’s current price.

A number of other research firms have also recently weighed in on DKNG. Barclays raised their price target on DraftKings from $50.00 to $60.00 and gave the company an “overweight” rating in a report on Tuesday, February 18th. Macquarie raised their target price on DraftKings from $50.00 to $51.00 and gave the company an “outperform” rating in a research note on Monday, November 11th. Susquehanna dropped their target price on shares of DraftKings from $56.00 to $54.00 and set a “positive” rating for the company in a research note on Wednesday, January 8th. BTIG Research set a $59.00 target price on shares of DraftKings in a report on Monday, February 3rd. Finally, Cowen reaffirmed a “buy” rating on shares of DraftKings in a research note on Tuesday, February 4th. Three analysts have rated the stock with a hold rating and twenty-five have assigned a buy rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $54.44.

DraftKings Price Performance

NASDAQ:DKNG opened at $45.45 on Monday. The company has a fifty day moving average price of $41.41 and a 200 day moving average price of $39.40. DraftKings has a one year low of $28.69 and a one year high of $53.61. The company has a debt-to-equity ratio of 1.24, a current ratio of 0.93 and a quick ratio of 1.00. The stock has a market cap of $22.27 billion, a P/E ratio of -42.90, a PEG ratio of 1.43 and a beta of 1.93.

DraftKings (NASDAQ:DKNG) last posted its earnings results on Thursday, February 13th. The company reported ($0.28) earnings per share for the quarter, missing the consensus estimate of $0.07 by ($0.35). DraftKings had a negative return on equity of 48.13% and a negative net margin of 10.64%. Analysts anticipate that DraftKings will post 0.64 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Paul Liberman sold 200,000 shares of the business’s stock in a transaction on Friday, January 10th. The shares were sold at an average price of $39.00, for a total value of $7,800,000.00. Following the transaction, the insider now owns 1,342,722 shares in the company, valued at $52,366,158. The trade was a 12.96 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider R Stanton Dodge sold 228,496 shares of DraftKings stock in a transaction dated Monday, December 9th. The stock was sold at an average price of $42.74, for a total value of $9,765,919.04. Following the completion of the transaction, the insider now directly owns 541,884 shares of the company’s stock, valued at approximately $23,160,122.16. This trade represents a 29.66 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 1,160,591 shares of company stock valued at $46,945,158 over the last 90 days. 51.19% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. Creative Planning boosted its stake in DraftKings by 21.8% during the 3rd quarter. Creative Planning now owns 64,286 shares of the company’s stock valued at $2,520,000 after purchasing an additional 11,511 shares during the last quarter. International Assets Investment Management LLC grew its position in shares of DraftKings by 4,495.7% during the 3rd quarter. International Assets Investment Management LLC now owns 272,479 shares of the company’s stock valued at $10,681,000 after acquiring an additional 266,550 shares during the period. Assenagon Asset Management S.A. raised its holdings in shares of DraftKings by 264.4% in the 3rd quarter. Assenagon Asset Management S.A. now owns 133,734 shares of the company’s stock worth $5,242,000 after purchasing an additional 97,031 shares during the period. Ballentine Partners LLC lifted its stake in DraftKings by 15.8% in the third quarter. Ballentine Partners LLC now owns 7,589 shares of the company’s stock valued at $297,000 after purchasing an additional 1,035 shares during the last quarter. Finally, Forsta AP Fonden increased its position in DraftKings by 15.8% in the third quarter. Forsta AP Fonden now owns 97,500 shares of the company’s stock worth $3,822,000 after buying an additional 13,300 shares during the last quarter. 37.70% of the stock is currently owned by institutional investors and hedge funds.

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.