DraftKings (NASDAQ:DKNG) Trading Down 2.9% on Analyst Downgrade

DraftKings Inc. (NASDAQ:DKNG) shares traded down 2.9% during mid-day trading on Monday after Oppenheimer lowered their price target on the stock from $60.00 to $58.00. Oppenheimer currently has an outperform rating on the stock. DraftKings traded as low as $36.95 and last traded at $37.08. 1,051,922 shares traded hands during trading, a decline of 91% from the average session volume of 11,363,924 shares. The stock had previously closed at $38.17.

A number of other research analysts also recently commented on the stock. Mizuho initiated coverage on shares of DraftKings in a report on Tuesday, March 26th. They issued a “buy” rating and a $58.00 price target for the company. Guggenheim dropped their price target on shares of DraftKings from $53.00 to $52.00 and set a “buy” rating for the company in a research note on Wednesday, June 26th. Stifel Nicolaus reduced their price objective on shares of DraftKings from $51.00 to $50.00 and set a “buy” rating on the stock in a research report on Wednesday, May 29th. JPMorgan Chase & Co. restated an “overweight” rating and set a $55.00 target price on shares of DraftKings in a research report on Thursday, March 28th. Finally, Morgan Stanley increased their price target on DraftKings from $49.00 to $50.00 and gave the stock an “overweight” rating in a report on Tuesday, April 9th. Two equities research analysts have rated the stock with a sell rating, two have assigned a hold rating and twenty-five have given a buy rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $49.17.

Insider Transactions at DraftKings

In other DraftKings news, insider Paul Liberman sold 668,890 shares of DraftKings stock in a transaction dated Tuesday, June 25th. The shares were sold at an average price of $38.83, for a total transaction of $25,972,998.70. Following the transaction, the insider now directly owns 205,962 shares of the company’s stock, valued at $7,997,504.46. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In other DraftKings news, insider Jason Robins sold 200,000 shares of the company’s stock in a transaction dated Monday, April 22nd. The shares were sold at an average price of $40.91, for a total value of $8,182,000.00. Following the transaction, the insider now owns 3,043,231 shares of the company’s stock, valued at $124,498,580.21. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Paul Liberman sold 668,890 shares of DraftKings stock in a transaction that occurred on Tuesday, June 25th. The shares were sold at an average price of $38.83, for a total transaction of $25,972,998.70. Following the completion of the sale, the insider now owns 205,962 shares of the company’s stock, valued at approximately $7,997,504.46. The disclosure for this sale can be found here. Insiders have sold a total of 1,520,340 shares of company stock worth $60,996,583 in the last quarter. Company insiders own 48.94% of the company’s stock.

Institutional Investors Weigh In On DraftKings

Institutional investors have recently modified their holdings of the company. Highlander Capital Management LLC grew its position in DraftKings by 180.0% in the 4th quarter. Highlander Capital Management LLC now owns 700 shares of the company’s stock valued at $25,000 after acquiring an additional 450 shares in the last quarter. Transcendent Capital Group LLC acquired a new position in shares of DraftKings in the fourth quarter valued at approximately $26,000. Montag A & Associates Inc. purchased a new stake in DraftKings during the 4th quarter worth approximately $29,000. LRI Investments LLC acquired a new stake in DraftKings during the 1st quarter worth approximately $31,000. Finally, LifeSteps Financial Inc. purchased a new position in DraftKings in the 1st quarter valued at approximately $33,000. 37.70% of the stock is owned by institutional investors and hedge funds.

DraftKings Stock Performance

The firm has a market capitalization of $32.36 billion, a price-to-earnings ratio of -32.35 and a beta of 1.81. The company has a debt-to-equity ratio of 1.51, a current ratio of 1.34 and a quick ratio of 1.34. The firm has a 50 day moving average price of $40.67 and a 200-day moving average price of $40.61.

DraftKings (NASDAQ:DKNG) last announced its quarterly earnings data on Thursday, May 2nd. The company reported ($0.30) EPS for the quarter, missing analysts’ consensus estimates of ($0.28) by ($0.02). The company had revenue of $1.18 billion for the quarter, compared to analyst estimates of $1.12 billion. DraftKings had a negative return on equity of 62.74% and a negative net margin of 13.45%. The business’s quarterly revenue was up 52.7% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.87) earnings per share. As a group, sell-side analysts expect that DraftKings Inc. will post -0.24 earnings per share for the current fiscal year.

DraftKings Company Profile

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.