DraftKings (NASDAQ:DKNG) Stock Price Down 8.4% – Time to Sell?

Shares of DraftKings Inc. (NASDAQ:DKNG) fell 8.4% on Wednesday . The company traded as low as $21.60 and last traded at $21.6250. Approximately 19,738,258 shares traded hands during trading, an increase of 45% from the average daily volume of 13,656,617 shares. The stock had previously closed at $23.61.

Analysts Set New Price Targets

Several equities research analysts have issued reports on DKNG shares. Truist Financial cut their price target on DraftKings from $30.00 to $29.00 and set a “buy” rating for the company in a report on Monday, July 20th. JPMorgan Chase & Co. upped their price objective on shares of DraftKings from $31.00 to $34.00 and gave the company an “overweight” rating in a report on Wednesday, July 15th. HSBC raised shares of DraftKings from a “hold” rating to a “hold” rating in a research report on Friday, April 24th. Barclays lifted their target price on shares of DraftKings from $33.00 to $35.00 and gave the stock an “overweight” rating in a report on Monday, May 11th. Finally, BTIG Research upped their price target on shares of DraftKings from $28.00 to $30.00 and gave the company a “buy” rating in a research note on Friday, May 8th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $34.37.

DraftKings Trading Down 8.3%

The company has a debt-to-equity ratio of 3.03, a quick ratio of 1.02 and a current ratio of 1.02. The stock has a market capitalization of $10.74 billion, a price-to-earnings ratio of 360.73 and a beta of 1.66. The business has a fifty day simple moving average of $25.49 and a 200 day simple moving average of $25.14.

DraftKings (NASDAQ:DKNG) last posted its earnings results on Friday, May 8th. The company reported $0.20 earnings per share for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.02). The firm had revenue of $1.65 billion for the quarter, compared to analyst estimates of $1.63 billion. DraftKings had a return on equity of 13.51% and a net margin of 0.93%.The firm’s quarterly revenue was up 16.8% compared to the same quarter last year. During the same period in the prior year, the business posted ($0.07) EPS. As a group, research analysts expect that DraftKings Inc. will post 0.54 EPS for the current year.

Insider Transactions at DraftKings

In other DraftKings news, Director Woodrow Levin sold 34,234 shares of the business’s stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $25.71, for a total value of $880,156.14. Following the completion of the sale, the director owned 29,820 shares of the company’s stock, valued at $766,672.20. The trade was a 53.45% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider R Stanton Dodge sold 62,500 shares of the stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $29.68, for a total transaction of $1,855,000.00. Following the transaction, the insider owned 556,258 shares in the company, valued at approximately $16,509,737.44. The trade was a 10.10% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 97,596 shares of company stock worth $2,756,991. 47.18% of the stock is owned by insiders.

Institutional Investors Weigh In On DraftKings

Hedge funds and other institutional investors have recently made changes to their positions in the business. Ascentis Independent Advisors bought a new stake in shares of DraftKings in the first quarter valued at approximately $27,000. Basecamp Wealth Advisors LLC increased its stake in DraftKings by 3,547.1% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 1,240 shares of the company’s stock worth $27,000 after acquiring an additional 1,206 shares during the period. CoreCap Advisors LLC raised its holdings in DraftKings by 336.5% in the 2nd quarter. CoreCap Advisors LLC now owns 1,148 shares of the company’s stock valued at $29,000 after acquiring an additional 885 shares in the last quarter. Montag A & Associates Inc. raised its holdings in DraftKings by 82.5% in the 4th quarter. Montag A & Associates Inc. now owns 1,106 shares of the company’s stock valued at $38,000 after acquiring an additional 500 shares in the last quarter. Finally, SHP Wealth Management bought a new stake in shares of DraftKings during the 4th quarter valued at $42,000. 37.70% of the stock is currently owned by institutional investors and hedge funds.

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.