DraftKings (NASDAQ:DKNG) Director Gregory Westin Wendt Acquires 5,000 Shares of Stock

DraftKings Inc. (NASDAQ:DKNG) Director Gregory Wendt purchased 5,000 shares of the company’s stock in a transaction on Wednesday, November 11th. The shares were purchased at an average price of $19.76 per share, for a total transaction of $98,800.00. Following the purchase, the director owned 22,920 shares in the company, valued at approximately $452,899.20. The trade was a 27.90% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website.

DraftKings Price Performance

Shares of DKNG stock opened at $19.12 on Friday. DraftKings Inc. has a fifty-two week low of $16.55 and a fifty-two week high of $36.98. The company has a debt-to-equity ratio of 12.21, a current ratio of 0.99 and a quick ratio of 1.02. The stock’s 50-day simple moving average is $21.10 and its 200-day simple moving average is $23.82.

DraftKings (NASDAQ:DKNG) last released its earnings results on Thursday, November 5th. The company reported ($0.53) EPS for the quarter, missing analysts’ consensus estimates of ($0.41) by ($0.12). DraftKings had a negative return on equity of 43.92% and a negative net margin of 5.91%. The firm had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.39 billion. During the same period last year, the firm earned ($0.26) EPS. The company’s revenue for the quarter was up 16.2% compared to the same quarter last year. On average, analysts forecast that DraftKings Inc. will post 0.31 EPS for the current year.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on the stock. Sanford C. Bernstein reduced their target price on shares of DraftKings from $27.00 to $22.00 and set an “outperform” rating for the company in a report on Monday. BTIG Research decreased their target price on shares of DraftKings from $26.00 to $23.00 and set a “buy” rating for the company in a research report on Monday. JPMorgan Chase & Co. lowered shares of DraftKings from an “overweight” rating to a “neutral” rating and lowered their price target for the company from $30.00 to $21.00 in a report on Monday. Berenberg Bank downgraded DraftKings from a “buy” rating to a “hold” rating and cut their price target for the stock from $27.50 to $20.00 in a research report on Tuesday. Finally, Wall Street Zen lowered DraftKings from a “hold” rating to a “sell” rating in a research note on Saturday, August 15th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, ten have issued a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $27.61.

Hedge Funds Weigh In On DraftKings

Several large investors have recently made changes to their positions in DKNG. Janus Henderson Group PLC grew its position in DraftKings by 9.3% during the first quarter. Janus Henderson Group PLC now owns 27,665,699 shares of the company’s stock valued at $588,288,000 after buying an additional 2,351,790 shares during the period. Spruce House Investment Management LLC boosted its stake in shares of DraftKings by 129.6% during the 1st quarter. Spruce House Investment Management LLC now owns 9,650,000 shares of the company’s stock worth $208,633,000 after acquiring an additional 5,446,166 shares in the last quarter. Swiss National Bank boosted its stake in shares of DraftKings by 7.4% during the 1st quarter. Swiss National Bank now owns 1,314,864 shares of the company’s stock worth $28,427,000 after acquiring an additional 90,400 shares in the last quarter. First Trust Advisors LP boosted its stake in shares of DraftKings by 1.7% during the 3rd quarter. First Trust Advisors LP now owns 1,061,043 shares of the company’s stock worth $20,160,000 after acquiring an additional 17,781 shares in the last quarter. Finally, Bank of New York Mellon Corp acquired a new position in DraftKings in the 2nd quarter worth about $24,014,000. 37.70% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting DraftKings

Investors following DKNG have been watching these headlines:

• Positive Sentiment: A DraftKings director bought 5,000 shares for about $98,800, increasing his position by 27.9%. Insider buying may signal confidence, though the purchase is modest relative to the company’s size. Director share purchase
• Negative Sentiment: Wells Fargo downgraded DraftKings, and several other firms reportedly cut ratings or price targets. The repeated analyst caution adds pressure to expectations for the shares. Wells Fargo downgrade
• Negative Sentiment: Commentary highlighted the competitive threat from prediction markets and questioned their economics, while concerns about DraftKings’ investment costs and outlook add to uncertainty around whether the new business can deliver profitable growth. Prediction-market competition

About DraftKings

DraftKings Inc. is a digital sports and entertainment company founded in 2012. It began as a daily fantasy sports platform and has since expanded into online sports betting and gaming. The company offers daily fantasy contests, a sportsbook and online casino products, including games such as slots and table games. Its services are available in a range of U.S. jurisdictions and in Ontario, Canada, where permitted by local regulations. DraftKings is headquartered in Boston, Massachusetts. Co-founder Jason Robins serves as the company’s chief executive officer.