DraftKings (NASDAQ:DKNG) Shares Down 4.5%

DraftKings Inc. (NASDAQ:DKNG) fell 4.5% on Wednesday . The company traded as low as $42.75 and last traded at $42.93. 7,798,245 shares traded hands during mid-day trading, a decline of 34% from the average session volume of 11,796,865 shares. The stock had previously closed at $44.94.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on DKNG. JMP Securities reissued a “market outperform” rating and issued a $52.00 price target on shares of DraftKings in a report on Monday, March 25th. Moffett Nathanson upped their price objective on shares of DraftKings from $52.00 to $55.00 and gave the company a “buy” rating in a research note on Thursday, March 28th. JPMorgan Chase & Co. reaffirmed an “overweight” rating and set a $55.00 price objective on shares of DraftKings in a research note on Thursday, March 28th. Needham & Company LLC increased their price target on shares of DraftKings from $54.00 to $58.00 and gave the stock a “buy” rating in a research report on Wednesday, March 27th. Finally, The Goldman Sachs Group started coverage on shares of DraftKings in a research report on Tuesday. They issued a “buy” rating and a $60.00 price target for the company. Two investment analysts have rated the stock with a sell rating, one has given a hold rating and twenty-five have given a buy rating to the company’s stock. Based on data from MarketBeat.com, DraftKings currently has a consensus rating of “Moderate Buy” and a consensus target price of $47.00.

DraftKings Stock Performance

The stock has a market capitalization of $35.25 billion, a P/E ratio of -23.31 and a beta of 1.86. The firm has a 50-day moving average of $43.84 and a 200 day moving average of $37.84. 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 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 net margin of 21.88% and a negative return on equity of 87.24%. The business had revenue of $1.23 billion during the quarter, compared to analyst estimates of $1.24 billion. During the same quarter last year, the business posted ($0.53) earnings per share. The business’s quarterly revenue was up 43.9% compared to the same quarter last year. Research analysts anticipate that DraftKings Inc. will post -0.25 EPS for the current fiscal year.

Insider Buying and Selling

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

Hedge Funds Weigh In On DraftKings

Several institutional investors have recently modified their holdings of the business. Vanguard Group Inc. lifted its holdings in shares of DraftKings by 6.0% during the 4th quarter. Vanguard Group Inc. now owns 39,263,918 shares of the company’s stock valued at $1,384,053,000 after purchasing an additional 2,225,759 shares in the last quarter. Whale Rock Capital Management LLC bought a new position in shares of DraftKings during the 2nd quarter valued at about $215,687,000. Jericho Capital Asset Management L.P. lifted its holdings in shares of DraftKings by 39.4% during the 3rd quarter. Jericho Capital Asset Management L.P. now owns 7,153,967 shares of the company’s stock valued at $210,613,000 after purchasing an additional 2,022,000 shares in the last quarter. Geode Capital Management LLC lifted its holdings in shares of DraftKings by 3.2% during the 1st quarter. Geode Capital Management LLC now owns 5,962,037 shares of the company’s stock valued at $115,425,000 after purchasing an additional 184,476 shares in the last quarter. Finally, Norges Bank bought a new stake in DraftKings in the 4th quarter valued at approximately $192,140,000. Institutional investors own 37.70% of the company’s stock.

DraftKings Company Profile

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.