DraftKings (NASDAQ:DKNG) Shares Down 7.7% – What’s Next?

Shares of DraftKings Inc. (NASDAQ:DKNG) traded down 7.7% during mid-day trading on Friday . The stock traded as low as $32.80 and last traded at $32.7250. 7,287,889 shares were traded during trading, a decline of 27% from the average session volume of 9,978,948 shares. The stock had previously closed at $35.46.

Analyst Ratings Changes

A number of equities analysts recently weighed in on DKNG shares. Canaccord Genuity Group reduced their target price on shares of DraftKings from $60.00 to $54.00 and set a “buy” rating for the company in a research note on Friday, November 7th. Northland Capmk upgraded DraftKings from a “strong sell” rating to a “hold” rating in a report on Monday, November 10th. Weiss Ratings reiterated a “sell (d-)” rating on shares of DraftKings in a report on Wednesday, October 8th. Sanford C. Bernstein dropped their target price on DraftKings from $50.00 to $41.00 and set an “outperform” rating on the stock in a research report on Monday, November 10th. Finally, Wall Street Zen cut DraftKings from a “buy” rating to a “hold” rating in a research note on Friday, October 3rd. Twenty-five analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $47.10.

DraftKings Trading Down 6.9%

The company has a debt-to-equity ratio of 2.51, a current ratio of 1.10 and a quick ratio of 1.09. The business has a 50-day moving average of $33.38 and a 200-day moving average of $38.38. The firm has a market cap of $16.43 billion, a price-to-earnings ratio of -57.97, a P/E/G ratio of 0.69 and a beta of 1.63.

DraftKings (NASDAQ:DKNG) last issued its quarterly earnings results on Friday, November 7th. The company reported ($0.26) EPS for the quarter, missing the consensus estimate of $0.01 by ($0.27). The company had revenue of $1.14 billion for the quarter, compared to analyst estimates of $1.40 billion. DraftKings had a negative net margin of 4.90% and a negative return on equity of 22.84%. The business’s revenue for the quarter was up 4.4% on a year-over-year basis. During the same period last year, the company posted ($0.60) earnings per share. Research analysts anticipate that DraftKings Inc. will post 0.64 EPS for the current year.

Insider Activity

In other news, Director Harry Sloan purchased 25,000 shares of the business’s stock in a transaction on Tuesday, November 11th. The stock was purchased at an average price of $30.30 per share, for a total transaction of $757,500.00. Following the completion of the purchase, the director directly owned 249,712 shares in the company, valued at $7,566,273.60. The trade was a 11.13% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider R Stanton Dodge sold 52,777 shares of the firm’s stock in a transaction dated Monday, December 1st. The shares were sold at an average price of $33.84, for a total transaction of $1,785,973.68. Following the completion of the sale, the insider owned 512,182 shares of the company’s stock, valued at $17,332,238.88. This trade represents a 9.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 113,975 shares of company stock valued at $3,562,653 over the last three months. Corporate insiders own 51.19% of the company’s stock.

Institutional Trading of DraftKings

Institutional investors and hedge funds have recently bought and sold shares of the business. Cohen Investment Advisors LLC boosted its stake in shares of DraftKings by 3.2% during the 4th quarter. Cohen Investment Advisors LLC now owns 85,012 shares of the company’s stock worth $2,930,000 after acquiring an additional 2,666 shares during the period. Nilsine Partners LLC acquired a new stake in DraftKings during the 4th quarter valued at $288,000. Nisa Investment Advisors LLC lifted its holdings in DraftKings by 7.2% during the 4th quarter. Nisa Investment Advisors LLC now owns 77,696 shares of the company’s stock valued at $2,677,000 after purchasing an additional 5,190 shares during the last quarter. Lewis Asset Management LLC bought a new position in DraftKings during the fourth quarter worth $283,000. Finally, Northwest Wealth Management LLC acquired a new position in shares of DraftKings in the fourth quarter valued at $373,000. Institutional investors own 37.70% of the company’s stock.

DraftKings Company Profile

DraftKings Inc is a leading digital sports entertainment and gaming company specializing in daily fantasy sports, sports betting and iGaming products. The company provides an integrated platform where users can participate in daily fantasy contests, place wagers on professional sports events, and enjoy a range of online casino-style games. DraftKings’ proprietary technology supports real-time odds, live scoring and advanced analytics to enhance the user experience across mobile and desktop applications.

Founded in 2012 by co-founders Jason Robins, Matthew Kalish and Paul Liberman, DraftKings began as a daily fantasy sports provider and rapidly expanded into regulated sports betting following legislative changes in the United States.