DraftKings (NASDAQ:DKNG) Sets New 12-Month Low Following Analyst Downgrade

DraftKings Inc. (NASDAQ:DKNG)’s share price hit a new 52-week low during trading on Friday after Truist Securities lowered their price target on the stock from $50.00 to $30.00. The company traded as low as $22.95 and last traded at $23.15, with a volume of 577292 shares traded. The stock had previously closed at $24.24.

A number of other equities analysts also recently commented on DKNG. Truist cut their price objective on shares of DraftKings from $50.00 to $30.00 in a research report on Thursday. Citigroup started coverage on shares of DraftKings in a report on Tuesday, December 7th. They issued a “hold” rating and a $36.00 price target for the company. Oppenheimer cut their price target on shares of DraftKings from $80.00 to $70.00 and set an “outperform” rating for the company in a report on Monday, November 8th. Morgan Stanley initiated coverage on shares of DraftKings in a report on Tuesday, November 2nd. They issued an “equal weight” rating and a $53.00 price target on the stock. Finally, Roth Capital reaffirmed a “sell” rating and issued a $23.00 target price on shares of DraftKings in a research note on Wednesday. One research analyst has rated the stock with a sell rating, eleven have assigned a hold rating and seventeen have assigned a buy rating to the stock. According to data from MarketBeat.com, DraftKings presently has an average rating of “Buy” and an average target price of $58.71.

In other DraftKings news, CFO Jason Park sold 88,000 shares of the company’s stock in a transaction dated Friday, October 29th. The stock was sold at an average price of $46.88, for a total value of $4,125,440.00. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Steven Joseph Murray sold 30,707 shares of the business’s stock in a transaction on Tuesday, December 14th. The stock was sold at an average price of $27.92, for a total transaction of $857,339.44. The disclosure for this sale can be found here. Insiders have sold 745,525 shares of company stock worth $34,413,940 over the last three months. 62.00% of the stock is owned by insiders.

A number of hedge funds have recently made changes to their positions in DKNG. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp increased its position in DraftKings by 13.2% during the second quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 32,493 shares of the company’s stock worth $1,695,000 after acquiring an additional 3,784 shares during the period. State Board of Administration of Florida Retirement System grew its holdings in shares of DraftKings by 4,072.9% in the 2nd quarter. State Board of Administration of Florida Retirement System now owns 362,038 shares of the company’s stock worth $18,888,000 after purchasing an additional 353,362 shares during the last quarter. Mid Atlantic Financial Management Inc. ADV grew its holdings in shares of DraftKings by 13.9% in the 2nd quarter. Mid Atlantic Financial Management Inc. ADV now owns 6,973 shares of the company’s stock worth $364,000 after purchasing an additional 849 shares during the last quarter. Cambridge Investment Research Advisors Inc. grew its holdings in shares of DraftKings by 22.0% in the 2nd quarter. Cambridge Investment Research Advisors Inc. now owns 201,121 shares of the company’s stock worth $10,492,000 after purchasing an additional 36,244 shares during the last quarter. Finally, Mercer Global Advisors Inc. ADV grew its holdings in shares of DraftKings by 16.7% in the 2nd quarter. Mercer Global Advisors Inc. ADV now owns 11,224 shares of the company’s stock worth $586,000 after purchasing an additional 1,603 shares during the last quarter. 62.97% of the stock is currently owned by institutional investors and hedge funds.

The company’s fifty day moving average price is $31.61 and its two-hundred day moving average price is $44.75. The company has a current ratio of 3.18, a quick ratio of 3.18 and a debt-to-equity ratio of 0.68. The firm has a market cap of $9.43 billion, a P/E ratio of -6.32 and a beta of 1.91.

DraftKings (NASDAQ:DKNG) last issued its quarterly earnings results on Friday, November 5th. The company reported ($1.35) earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of ($1.11) by ($0.24). The company had revenue of $212.82 million for the quarter, compared to analyst estimates of $224.86 million. DraftKings had a negative return on equity of 65.15% and a negative net margin of 127.81%. During the same quarter last year, the company earned ($0.98) EPS. On average, analysts predict that DraftKings Inc. will post -3.62 EPS for the current fiscal year.

About DraftKings (NASDAQ:DKNG)

DraftKings Inc operates as a digital sports entertainment and gaming company in the United States. It operates through two segments, Business-to-Consumer and Business-to-Business. The company provides users with daily sports, sports betting, and iGaming opportunities. It is also involved in the design, development, and licensing of sports betting and casino gaming platform software for online and retail sportsbook, and casino gaming products.

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