DraftKings Inc. (NASDAQ:DKNG) Receives Consensus Recommendation of “Moderate Buy” from Analysts

DraftKings Inc. (NASDAQ:DKNG) has been assigned an average rating of “Moderate Buy” from the forty brokerages that are covering the stock, Marketbeat reports. Two investment analysts have rated the stock with a sell recommendation, eight have issued a hold recommendation, twenty-nine have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year target price among brokers that have covered the stock in the last year is $34.1097.

A number of analysts have recently weighed in on DKNG shares. HSBC raised shares of DraftKings from a “hold” rating to a “hold” rating in a report on Friday, April 24th. Citigroup upped their price objective on shares of DraftKings from $30.00 to $32.00 and gave the stock a “buy” rating in a research report on Tuesday, August 11th. Sanford C. Bernstein set a $27.00 price objective on shares of DraftKings in a research note on Thursday, August 6th. Citizens Jmp raised their target price on shares of DraftKings from $34.00 to $36.00 and gave the company a “market outperform” rating in a research report on Thursday, June 25th. Finally, Northland Securities set a $28.00 target price on shares of DraftKings in a research note on Monday, August 10th.

DraftKings Stock Up 5.3%

Shares of DKNG opened at $25.31 on Thursday. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 3.22. DraftKings has a 12 month low of $20.46 and a 12 month high of $48.78. The firm’s 50 day moving average is $25.23 and its 200-day moving average is $24.60. The stock has a market capitalization of $12.57 billion, a PE ratio of -66.61 and a beta of 1.66.

DraftKings (NASDAQ:DKNG) last issued its quarterly earnings results on Thursday, August 6th. The company reported $0.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.02 by $0.07. The business had revenue of $1.44 billion during the quarter, compared to analysts’ expectations of $1.51 billion. DraftKings had a negative return on equity of 11.26% and a negative net margin of 2.68%.The firm’s revenue for the quarter was down 4.6% compared to the same quarter last year. During the same period in the previous year, the company posted $0.30 earnings per share. Equities research analysts forecast that DraftKings will post 0.51 EPS for the current year.

Insider Buying and Selling at DraftKings

In related news, insider R Stanton Dodge sold 62,500 shares of the business’s stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $29.68, for a total transaction of $1,855,000.00. Following the sale, the insider owned 556,258 shares in the company, valued at $16,509,737.44. The trade was a 10.10% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 47.18% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On DraftKings

Large investors have recently bought and sold shares of the company. Public Employees Retirement System of Ohio bought a new stake in shares of DraftKings during the second quarter worth about $3,443,000. Point72 Private Investments LLC bought a new position in DraftKings in the 2nd quarter valued at approximately $368,114,000. Buckland Partners Management Co LLC acquired a new stake in DraftKings during the 2nd quarter worth approximately $1,516,000. Bank of New York Mellon Corp acquired a new stake in DraftKings during the 2nd quarter worth approximately $24,014,000. Finally, LifeGoal Investments LLC bought a new stake in DraftKings during the 2nd quarter worth approximately $218,000. 37.70% of the stock is currently owned by institutional investors.

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.