DraftKings (NASDAQ:DKNG) Cut to Hold at Wall Street Zen

Wall Street Zen downgraded shares of DraftKings (NASDAQ:DKNG) from a buy rating to a hold rating in a research note published on Friday.

DKNG has been the subject of several other reports. Oppenheimer decreased their price target on shares of DraftKings from $60.00 to $55.00 and set an “outperform” rating for the company in a research report on Wednesday, October 1st. UBS Group decreased their target price on shares of DraftKings from $58.00 to $56.00 and set a “buy” rating for the company in a research report on Wednesday, September 24th. Susquehanna reaffirmed a “positive” rating and issued a $64.00 price target on shares of DraftKings in a report on Friday, August 8th. Northland Securities reiterated an “under perform” rating and set a $33.00 price objective (down previously from $53.00) on shares of DraftKings in a report on Wednesday, October 1st. Finally, Stifel Nicolaus lowered their price objective on DraftKings from $53.00 to $51.00 and set a “buy” rating for the company in a research report on Wednesday, July 16th. Twenty-six investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $53.89.

DraftKings Stock Up 1.4%

Shares of NASDAQ DKNG opened at $35.37 on Friday. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 1.82. The stock has a market capitalization of $17.56 billion, a PE ratio of -54.42, a price-to-earnings-growth ratio of 0.93 and a beta of 1.99. The stock’s fifty day simple moving average is $44.25 and its two-hundred day simple moving average is $39.81. DraftKings has a 12-month low of $29.64 and a 12-month high of $53.61.

DraftKings (NASDAQ:DKNG) last released its quarterly earnings results on Thursday, August 7th. The company reported $0.30 EPS for the quarter, topping the consensus estimate of $0.16 by $0.14. The firm had revenue of $1.51 billion during the quarter, compared to analyst estimates of $1.39 billion. DraftKings had a negative return on equity of 30.06% and a negative net margin of 5.63%.The business’s revenue for the quarter was up 36.9% compared to the same quarter last year. During the same period in the previous year, the company posted $0.12 EPS. DraftKings has set its FY 2025 guidance at EPS. As a group, analysts expect that DraftKings will post 0.64 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Ryan R. Moore sold 76,390 shares of the stock in a transaction on Thursday, August 21st. The shares were sold at an average price of $45.92, for a total transaction of $3,507,828.80. Following the sale, the director directly owned 402 shares of the company’s stock, valued at approximately $18,459.84. This represents a 99.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Matthew Kalish sold 210,000 shares of the firm’s stock in a transaction on Tuesday, August 12th. The shares were sold at an average price of $42.90, for a total transaction of $9,009,000.00. Following the sale, the insider owned 4,190,233 shares in the company, valued at approximately $179,760,995.70. This represents a 4.77% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 658,331 shares of company stock worth $29,285,365. Corporate insiders own 47.08% of the company’s stock.

Institutional Investors Weigh In On DraftKings

A number of institutional investors have recently modified their holdings of DKNG. Norges Bank purchased a new position in shares of DraftKings in the 2nd quarter valued at about $362,554,000. AQR Capital Management LLC grew its holdings in DraftKings by 2,138.9% in the first quarter. AQR Capital Management LLC now owns 4,696,244 shares of the company’s stock valued at $155,962,000 after purchasing an additional 4,486,488 shares during the period. Brown Advisory Inc. increased its position in shares of DraftKings by 53,272.1% in the second quarter. Brown Advisory Inc. now owns 4,056,280 shares of the company’s stock valued at $173,974,000 after buying an additional 4,048,680 shares in the last quarter. Eminence Capital LP increased its position in shares of DraftKings by 195.2% in the first quarter. Eminence Capital LP now owns 5,178,083 shares of the company’s stock valued at $171,964,000 after buying an additional 3,423,909 shares in the last quarter. Finally, Nuveen LLC acquired a new position in shares of DraftKings during the 1st quarter worth approximately $107,739,000. 37.70% of the stock is currently owned by institutional investors and hedge funds.

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.