DraftKings (NASDAQ:DKNG) Sets New 1-Year High Following Analyst Upgrade

DraftKings Inc. (NASDAQ:DKNG)’s share price hit a new 52-week high during trading on Tuesday after Needham & Company LLC raised their price target on the stock from $54.00 to $58.00. Needham & Company LLC currently has a buy rating on the stock. DraftKings traded as high as $49.27 and last traded at $49.00, with a volume of 1644318 shares. The stock had previously closed at $47.32.

Other equities analysts have also recently issued research reports about the company. Bank Of America (Bofa) lifted their target price on DraftKings from $45.00 to $50.00 in a report on Thursday, February 15th. UBS Group lifted their target price on DraftKings from $44.00 to $56.00 and gave the stock a “buy” rating in a report on Tuesday, March 5th. Stifel Nicolaus upgraded DraftKings from a “hold” rating to a “buy” rating and boosted their price objective for the company from $40.00 to $45.00 in a report on Friday, January 19th. Susquehanna upped their price objective on DraftKings from $51.00 to $54.00 and gave the company a “positive” rating in a research report on Monday. Finally, BNP Paribas downgraded DraftKings from a “neutral” rating to an “underperform” rating and set a $28.00 price objective on the stock. in a research report on Friday, January 19th. Two investment analysts have rated the stock with a sell rating, one has issued a hold rating and twenty-four have issued a buy rating to the company. According to data from MarketBeat.com, DraftKings has a consensus rating of “Moderate Buy” and a consensus price target of $45.14.

Insider Buying and Selling

In related news, insider Jason Robins sold 200,000 shares of the company’s stock in a transaction on Monday, January 22nd. The stock was sold at an average price of $37.82, for a total transaction 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 approximately $144,309,698.36. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. In related news, insider Jason Robins sold 200,000 shares of the company’s stock in a transaction on Monday, January 22nd. The stock was sold at an average price of $37.82, for a total transaction 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 approximately $144,309,698.36. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider R Stanton Dodge sold 686,101 shares of the company’s stock in a transaction on Thursday, February 8th. The stock was sold at an average price of $43.06, for a total value of $29,543,509.06. Following the sale, the insider now owns 200,239 shares of the company’s stock, valued at $8,622,291.34. The disclosure for this sale can be found here. Insiders sold 1,596,101 shares of company stock worth $65,685,509 in the last three months. 55.92% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Fifth Third Bancorp increased its position in DraftKings by 8.3% during the 4th quarter. Fifth Third Bancorp now owns 4,331 shares of the company’s stock valued at $153,000 after buying an additional 331 shares in the last quarter. Cornerstone Wealth Management LLC increased its position in DraftKings by 4.4% during the 4th quarter. Cornerstone Wealth Management LLC now owns 8,082 shares of the company’s stock valued at $285,000 after buying an additional 341 shares in the last quarter. Signaturefd LLC increased its position in DraftKings by 7.6% during the 3rd quarter. Signaturefd LLC now owns 5,350 shares of the company’s stock valued at $158,000 after buying an additional 379 shares in the last quarter. Stratos Wealth Advisors LLC increased its position in DraftKings by 3.8% during the 4th quarter. Stratos Wealth Advisors LLC now owns 10,289 shares of the company’s stock valued at $363,000 after buying an additional 381 shares in the last quarter. Finally, Udine Wealth Management Inc. increased its position in DraftKings by 0.5% during the 3rd quarter. Udine Wealth Management Inc. now owns 79,352 shares of the company’s stock valued at $2,336,000 after buying an additional 384 shares in the last quarter. 37.70% of the stock is owned by institutional investors and hedge funds.

DraftKings Stock Down 6.8 %

The company has a 50-day moving average of $42.27 and a 200-day moving average of $36.21. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 1.49. The company has a market capitalization of $39.30 billion, a price-to-earnings ratio of -25.91 and a beta of 1.87.

DraftKings (NASDAQ:DKNG) last announced its quarterly earnings data 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). The firm had revenue of $1.23 billion during the quarter, compared to analyst estimates of $1.24 billion. DraftKings had a negative net margin of 21.88% and a negative return on equity of 87.24%. The firm’s revenue for the quarter was up 43.9% on a year-over-year basis. During the same period in the prior year, the company posted ($0.53) earnings per share. On average, equities analysts predict that DraftKings Inc. will post -0.24 earnings per share for the current fiscal year.

About DraftKings

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.