DraftKings (NASDAQ:DKNG) Coverage Initiated by Analysts at Wolfe Research

Wolfe Research assumed coverage on shares of DraftKings (NASDAQ:DKNG) in a report released on Wednesday, Marketbeat.com reports. The firm set an “outperform” rating and a $40.00 price target on the stock. Wolfe Research’s target price would suggest a potential upside of 65.22% from the stock’s current price.

A number of other research analysts also recently commented on DKNG. Wall Street Zen downgraded DraftKings from a “hold” rating to a “sell” rating in a report on Saturday, August 15th. Jefferies Financial Group restated a “buy” rating on shares of DraftKings in a research note on Wednesday, June 10th. Benchmark lifted their price objective on shares of DraftKings from $29.00 to $30.00 and gave the stock a “buy” rating in a report on Friday, August 7th. Mizuho boosted their target price on shares of DraftKings from $44.00 to $45.00 and gave the company an “outperform” rating in a research note on Tuesday, May 12th. Finally, Morgan Stanley dropped their target price on shares of DraftKings from $39.00 to $36.00 and set an “overweight” rating on the stock in a report on Thursday, July 23rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $34.29.

DraftKings Trading Up 3.3%

NASDAQ DKNG opened at $24.21 on Wednesday. The company’s fifty day moving average price is $24.80 and its two-hundred day moving average price is $24.47. The company has a market capitalization of $12.02 billion, a price-to-earnings ratio of -63.71, a price-to-earnings-growth ratio of 1.83 and a beta of 1.63. DraftKings has a 12 month low of $20.46 and a 12 month high of $48.78. The company has a debt-to-equity ratio of 3.22, a current ratio of 1.02 and a quick ratio of 1.02.

DraftKings (NASDAQ:DKNG) last issued its earnings results on Friday, August 7th. The company reported $0.09 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.02 by $0.07. DraftKings had a negative net margin of 2.68% and a negative return on equity of 11.26%. The business had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.51 billion. During the same quarter in the prior year, the business posted $0.30 EPS. The company’s revenue for the quarter was down 4.6% on a year-over-year basis. As a group, research analysts predict that DraftKings will post 0.51 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other DraftKings news, Director Jocelyn Moore sold 10,759 shares of the firm’s stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $24.05, for a total value of $258,753.95. Following the sale, the director owned 1,881 shares in the company, valued at approximately $45,238.05. This trade represents a 85.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider R Stanton Dodge sold 62,500 shares of the stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $29.68, for a total value of $1,855,000.00. Following the completion of the transaction, the insider directly owned 556,258 shares of the company’s stock, valued at approximately $16,509,737.44. The trade was a 10.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 47.18% of the company’s stock.

Hedge Funds Weigh In On DraftKings

A number of institutional investors and hedge funds have recently bought and sold shares of DKNG. CoreCap Advisors LLC increased its stake in shares of DraftKings by 336.5% during the second quarter. CoreCap Advisors LLC now owns 1,148 shares of the company’s stock valued at $29,000 after acquiring an additional 885 shares during the period. SHP Wealth Management acquired a new stake in shares of DraftKings in the fourth quarter valued at $42,000. Basecamp Wealth Advisors LLC boosted its stake in DraftKings by 3,547.1% during the first quarter. Basecamp Wealth Advisors LLC now owns 1,240 shares of the company’s stock valued at $27,000 after buying an additional 1,206 shares in the last quarter. Ascentis Independent Advisors acquired a new position in DraftKings during the first quarter worth about $27,000. Finally, Advisory Services Network LLC bought a new stake in shares of DraftKings in the 3rd quarter worth approximately $62,000. Institutional investors own 37.70% of the company’s stock.

DraftKings Company Profile

DraftKings Inc is a leading digital sports entertainment and gaming company specializing in daily fantasy sports, sports betting and iGaming products. The company provides an integrated platform where users can participate in daily fantasy contests, place wagers on professional sports events, and enjoy a range of online casino-style games. DraftKings’ proprietary technology supports real-time odds, live scoring and advanced analytics to enhance the user experience across mobile and desktop applications.

Founded in 2012 by co-founders Jason Robins, Matthew Kalish and Paul Liberman, DraftKings began as a daily fantasy sports provider and rapidly expanded into regulated sports betting following legislative changes in the United States.