Insider Buying: DraftKings (NASDAQ:DKNG) Director Buys $98,800.00 in Stock

DraftKings Inc. (NASDAQ:DKNG) Director Gregory Wendt acquired 5,000 shares of the business’s stock in a transaction dated Wednesday, November 11th. The shares were acquired at an average cost of $19.76 per share, with a total value of $98,800.00. Following the acquisition, the director directly owned 22,920 shares of the company’s stock, valued at $452,899.20. This represents a 27.90% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website.

DraftKings Stock Up 1.4%

DKNG stock opened at $19.64 on Thursday. The company’s 50 day moving average is $21.20 and its 200 day moving average is $23.88. The stock has a market cap of $9.79 billion, a price-to-earnings ratio of -24.55, a price-to-earnings-growth ratio of 2.54 and a beta of 1.65. The company has a current ratio of 0.99, a quick ratio of 1.02 and a debt-to-equity ratio of 12.21. DraftKings Inc. has a 1-year low of $16.55 and a 1-year high of $36.98.

DraftKings (NASDAQ:DKNG) last announced its earnings results on Thursday, November 5th. The company reported ($0.53) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.41) by ($0.12). DraftKings had a negative net margin of 5.91% and a negative return on equity of 43.92%. The company had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.39 billion. During the same quarter in the previous year, the firm earned ($0.26) earnings per share. The company’s revenue for the quarter was up 16.2% compared to the same quarter last year. Sell-side analysts predict that DraftKings Inc. will post 0.31 EPS for the current fiscal year.

Recent DraftKings Headlines

Here are a few of the latest headlines about DKNG:

• Positive Sentiment: DraftKings’ prediction-market exchange was reported to have revenue margins approaching sportsbook levels, which could help address investor concerns about the profitability of its expansion. DraftKings Prediction Market Exchange Revenue Margins Flirting with Sportsbook Levels
• Positive Sentiment: Reports that DraftKings trimmed staff may signal efforts to manage costs, though the size and expected savings were not specified. Polymarket, DraftKings Reportedly Trimmed Staff
• Negative Sentiment: Investors face continued concern over DraftKings’ outlook after weak third-quarter results and a guidance reset. The company’s prediction-market investment—reported at $650 million to $700 million—has raised questions about costs and future profitability. Jim Cramer Sounds Alarm on DraftKings and Gambling Stocks

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Private Advisor Group LLC increased its holdings in shares of DraftKings by 11.0% in the third quarter. Private Advisor Group LLC now owns 74,437 shares of the company’s stock worth $1,414,000 after buying an additional 7,356 shares during the period. Edgestream Partners L.P. bought a new position in DraftKings during the 3rd quarter worth approximately $870,000. HighTower Advisors LLC grew its position in DraftKings by 5.0% during the 3rd quarter. HighTower Advisors LLC now owns 134,098 shares of the company’s stock worth $2,548,000 after acquiring an additional 6,403 shares during the last quarter. Ibex Investors LLC increased its stake in DraftKings by 92.3% in the 3rd quarter. Ibex Investors LLC now owns 125,000 shares of the company’s stock worth $2,375,000 after purchasing an additional 60,000 shares during the period. Finally, Machina Capital S.A.S. purchased a new position in DraftKings in the 3rd quarter worth approximately $224,000. 37.70% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

DKNG has been the subject of several research reports. Sanford C. Bernstein cut their target price on shares of DraftKings from $27.00 to $22.00 and set an “outperform” rating for the company in a research report on Monday. Citigroup lowered their price target on DraftKings from $28.00 to $22.00 and set a “buy” rating on the stock in a research report on Tuesday. Bank of America reaffirmed a “buy” rating on shares of DraftKings in a research note on Friday, November 6th. UBS Group cut DraftKings from a “buy” rating to a “neutral” rating and cut their price objective for the stock from $48.00 to $22.00 in a report on Monday. Finally, Canaccord Genuity Group reduced their price objective on DraftKings from $40.00 to $30.00 and set a “buy” rating on the stock in a research report on Monday. One analyst has rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, ten have issued a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $27.61.

About DraftKings

DraftKings Inc. is a digital sports and entertainment company founded in 2012. It began as a daily fantasy sports platform and has since expanded into online sports betting and gaming. The company offers daily fantasy contests, a sportsbook and online casino products, including games such as slots and table games. Its services are available in a range of U.S. jurisdictions and in Ontario, Canada, where permitted by local regulations. DraftKings is headquartered in Boston, Massachusetts. Co-founder Jason Robins serves as the company’s chief executive officer.