DraftKings (NASDAQ:DKNG) Sees Unusually-High Trading Volume on Analyst Upgrade

DraftKings Inc. (NASDAQ:DKNG) shares saw unusually-high trading volume on Friday after Benchmark raised their price target on the stock from $50.00 to $52.00. Benchmark currently has a buy rating on the stock. Approximately 10,770,857 shares changed hands during mid-day trading, a decline of 7% from the previous session’s volume of 11,519,905 shares.The stock last traded at $42.23 and had previously closed at $43.03.

Several other research firms also recently weighed in on DKNG. Wells Fargo & Company raised their target price on DraftKings from $39.00 to $53.00 and gave the company an “overweight” rating in a research report on Tuesday, February 20th. JMP Securities reaffirmed a “market outperform” rating and set a $52.00 target price on shares of DraftKings in a research note on Monday, March 25th. Barclays raised their price target on shares of DraftKings from $50.00 to $52.00 and gave the stock an “overweight” rating in a research note on Friday, April 19th. UBS Group raised their target price on shares of DraftKings from $44.00 to $56.00 and gave the stock a “buy” rating in a research note on Tuesday, March 5th. Finally, Moffett Nathanson boosted their target price on DraftKings from $52.00 to $55.00 and gave the stock a “buy” rating in a report on Thursday, March 28th. Two investment analysts have rated the stock with a sell rating, one has assigned a hold rating and twenty-five have given a buy rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $47.45.

Insider Activity

In other news, insider Jason Robins sold 200,000 shares of DraftKings stock in a transaction dated Wednesday, February 21st. The stock was sold at an average price of $40.89, for a total value of $8,178,000.00. Following the transaction, the insider now directly owns 3,195,812 shares of the company’s stock, valued at approximately $130,676,752.68. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. In related news, insider Jason Robins sold 200,000 shares of the business’s stock in a transaction that occurred on Wednesday, February 21st. The stock was sold at an average price of $40.89, for a total transaction of $8,178,000.00. Following the transaction, the insider now directly owns 3,195,812 shares of the company’s stock, valued at approximately $130,676,752.68. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider R Stanton Dodge sold 686,101 shares of the business’s stock in a transaction that occurred 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 transaction, the insider now directly owns 200,239 shares in the company, valued at $8,622,291.34. The disclosure for this sale can be found here. Insiders have sold 1,086,101 shares of company stock valued at $45,903,509 in the last three months. Corporate insiders own 51.19% of the company’s stock.

Institutional Investors Weigh In On DraftKings

Several hedge funds and other institutional investors have recently modified their holdings of DKNG. Vanguard Group Inc. grew its stake in DraftKings by 6.0% in the fourth quarter. Vanguard Group Inc. now owns 39,263,918 shares of the company’s stock worth $1,384,053,000 after purchasing an additional 2,225,759 shares in the last quarter. Jericho Capital Asset Management L.P. boosted its stake in DraftKings by 39.4% in the third quarter. Jericho Capital Asset Management L.P. now owns 7,153,967 shares of the company’s stock valued at $210,613,000 after acquiring an additional 2,022,000 shares during the period. Norges Bank bought a new position in shares of DraftKings during the fourth quarter valued at approximately $192,140,000. Ameriprise Financial Inc. lifted its holdings in shares of DraftKings by 345.7% in the 3rd quarter. Ameriprise Financial Inc. now owns 4,440,494 shares of the company’s stock worth $130,742,000 after purchasing an additional 3,444,107 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA boosted its position in DraftKings by 21.4% during the 4th quarter. Massachusetts Financial Services Co. MA now owns 4,424,931 shares of the company’s stock valued at $155,979,000 after purchasing an additional 781,058 shares during the period. Institutional investors own 37.70% of the company’s stock.

DraftKings Price Performance

The company has a debt-to-equity ratio of 1.49, a current ratio of 1.34 and a quick ratio of 1.34. The stock has a market capitalization of $36.24 billion, a price-to-earnings ratio of -23.79 and a beta of 1.87. The company has a 50-day simple moving average of $43.57 and a two-hundred day simple moving average of $38.70.

DraftKings (NASDAQ:DKNG) last released its quarterly earnings data on Thursday, May 2nd. The company reported ($0.30) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.28) by ($0.02). DraftKings had a negative return on equity of 87.24% and a negative net margin of 21.88%. The firm had revenue of $1.18 billion during the quarter, compared to analyst estimates of $1.12 billion. During the same period last year, the business earned ($0.87) EPS. The firm’s revenue was up 52.7% on a year-over-year basis. On average, equities research analysts predict that DraftKings Inc. will post -0.24 earnings per share for the current year.

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.