The Goldman Sachs Group Initiates Coverage on DraftKings (NASDAQ:DKNG)

The Goldman Sachs Group initiated coverage on shares of DraftKings (NASDAQ:DKNG) in a research report sent to investors on Tuesday morning, MarketBeat.com reports. The brokerage issued a buy rating and a $60.00 target price on the stock.

Several other equities research analysts also recently commented on the company. JMP Securities reiterated a market outperform rating and set a $52.00 target price on shares of DraftKings in a report on Monday, March 25th. Mizuho started coverage on shares of DraftKings in a research note on Tuesday, March 26th. They set a buy rating and a $58.00 price objective on the stock. Piper Sandler upped their target price on shares of DraftKings from $40.00 to $50.00 and gave the company an overweight rating in a research note on Tuesday, February 13th. Wells Fargo & Company raised their price target on shares of DraftKings from $39.00 to $53.00 and gave the company an overweight rating in a report on Tuesday, February 20th. Finally, UBS Group boosted their price objective on shares of DraftKings from $44.00 to $56.00 and gave the stock a buy rating in a report on Tuesday, March 5th. Two investment analysts have rated the stock with a sell rating, one has issued a hold rating and twenty-five have given a buy rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of Moderate Buy and an average target price of $47.00.

DraftKings Price Performance

DKNG opened at $40.68 on Tuesday. DraftKings has a 52-week low of $20.26 and a 52-week high of $49.57. The company has a 50 day moving average of $43.79 and a two-hundred day moving average of $37.92. The company has a market cap of $35.25 billion, a P/E ratio of -23.25 and a beta of 1.86. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 1.49.

DraftKings (NASDAQ:DKNG) last announced its quarterly earnings results on Friday, February 16th. The company reported ($0.10) earnings per share for the quarter, missing analysts’ consensus estimates of $0.06 by ($0.16). DraftKings had a negative return on equity of 87.24% and a negative net margin of 21.88%. The business had revenue of $1.23 billion for the quarter, compared to analysts’ expectations of $1.24 billion. During the same period last year, the company posted ($0.53) earnings per share. The firm’s revenue for the quarter was up 43.9% on a year-over-year basis. On average, analysts expect that DraftKings will post -0.25 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Jason Robins sold 200,000 shares of the company’s stock in a transaction that occurred on Monday, January 22nd. The stock was sold at an average price of $37.82, for a total transaction of $7,564,000.00. Following the completion of the transaction, the insider now directly owns 3,815,698 shares of the company’s stock, valued at $144,309,698.36. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In related news, insider R Stanton Dodge sold 686,101 shares of DraftKings stock in a transaction dated Thursday, February 8th. The shares were sold at an average price of $43.06, for a total value of $29,543,509.06. Following the sale, the insider now directly owns 200,239 shares in the company, valued at approximately $8,622,291.34. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, insider Jason Robins sold 200,000 shares of the company’s stock in a transaction dated Monday, January 22nd. The stock was sold at an average price of $37.82, for a total transaction of $7,564,000.00. Following the completion of the transaction, the insider now owns 3,815,698 shares of the company’s stock, valued at approximately $144,309,698.36. The disclosure for this sale can be found here. Insiders have sold 1,596,101 shares of company stock valued at $65,685,509 over the last quarter. Insiders own 51.19% of the company’s stock.

Hedge Funds Weigh In On DraftKings

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Whale Rock Capital Management LLC acquired a new position in DraftKings during the 2nd quarter worth $215,687,000. Norges Bank acquired a new stake in DraftKings in the fourth quarter worth about $192,140,000. Two Sigma Investments LP bought a new position in DraftKings in the 1st quarter valued at about $102,351,000. Massachusetts Financial Services Co. MA acquired a new position in DraftKings during the 3rd quarter valued at about $107,276,000. Finally, Ameriprise Financial Inc. raised its position in shares of DraftKings by 345.7% during the 3rd quarter. Ameriprise Financial Inc. now owns 4,440,494 shares of the company’s stock worth $130,742,000 after buying an additional 3,444,107 shares in the last quarter. 37.70% of the stock is owned by institutional investors.

About DraftKings

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.