DraftKings (NASDAQ:DKNG) Sets New 12-Month Low – Time to Sell?

DraftKings Inc. (NASDAQ:DKNG)’s share price hit a new 52-week low during mid-day trading on Wednesday. The stock traded as low as $18.50 and last traded at $18.7550, with a volume of 6,669,281 shares traded. The stock had previously closed at $19.72.

Analyst Ratings Changes

A number of research firms have commented on DKNG. Wolfe Research initiated coverage on shares of DraftKings in a research note on Wednesday, September 2nd. They issued an “outperform” rating and a $40.00 price objective on the stock. Stifel Nicolaus decreased their target price on shares of DraftKings from $40.00 to $38.00 and set a “buy” rating for the company in a research note on Wednesday, July 22nd. TD Cowen increased their target price on shares of DraftKings from $30.00 to $35.00 and gave the stock a “buy” rating in a research note on Friday, July 10th. Wall Street Zen lowered DraftKings from a “hold” rating to a “sell” rating in a report on Saturday, August 15th. Finally, JPMorgan Chase & Co. lowered their price target on DraftKings from $34.00 to $33.00 and set an “overweight” rating on the stock in a report on Monday, August 10th. One investment analyst has rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $33.70.

DraftKings Trading Down 5.2%

The company has a fifty day moving average of $22.96 and a two-hundred day moving average of $24.03. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 3.22. The stock has a market capitalization of $9.28 billion, a price-to-earnings ratio of -49.22, a P/E/G ratio of 1.98 and a beta of 1.61.

DraftKings (NASDAQ:DKNG) last announced its quarterly earnings data on Friday, August 7th. The company reported $0.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.02 by $0.07. The company had revenue of $1.44 billion for the quarter, compared to analysts’ expectations of $1.51 billion. DraftKings had a negative net margin of 2.68% and a negative return on equity of 11.26%. DraftKings’s revenue was down 4.6% compared to the same quarter last year. During the same period in the previous year, the company posted $0.30 EPS. On average, research analysts expect that DraftKings Inc. will post 0.40 EPS for the current year.

Insider Transactions at DraftKings

In related news, Director Jocelyn Moore sold 10,759 shares of the stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $24.05, for a total transaction of $258,753.95. Following the completion of the transaction, the director directly owned 1,881 shares of the company’s stock, valued at $45,238.05. This represents a 85.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 47.18% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On DraftKings

A number of institutional investors have recently added to or reduced their stakes in DKNG. CoreCap Advisors LLC raised its position in shares of DraftKings by 336.5% during the second quarter. CoreCap Advisors LLC now owns 1,148 shares of the company’s stock worth $29,000 after acquiring an additional 885 shares during the last quarter. Janney Montgomery Scott LLC lifted its stake in shares of DraftKings by 2.0% during the first quarter. Janney Montgomery Scott LLC now owns 51,855 shares of the company’s stock valued at $1,121,000 after acquiring an additional 1,028 shares during the period. Cohen Investment Advisors LLC boosted its holdings in DraftKings by 1.3% in the first quarter. Cohen Investment Advisors LLC now owns 86,103 shares of the company’s stock valued at $1,862,000 after acquiring an additional 1,091 shares during the last quarter. Envestnet Portfolio Solutions Inc. boosted its holdings in DraftKings by 9.0% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 13,744 shares of the company’s stock valued at $347,000 after acquiring an additional 1,139 shares during the last quarter. Finally, SHP Wealth Management bought a new position in DraftKings in the fourth quarter valued at about $42,000. Hedge funds and other institutional investors own 37.70% of the company’s stock.

DraftKings Company Profile

DraftKings Inc is a digital sports entertainment and gaming company that provides online sports betting, daily fantasy sports and internet-based casino gaming. Its products are delivered through mobile applications and websites, allowing customers to wager on professional and collegiate sports, participate in fantasy contests and play a range of casino games where permitted by law.

The company also offers sports and betting-related content through DraftKings Network and operates additional gaming and entertainment products, including online lottery services in select markets.