Northland Capmk Reduces Earnings Estimates for DraftKings

DraftKings Inc. (NASDAQ:DKNG) – Northland Capmk cut their FY2024 earnings per share estimates for shares of DraftKings in a report issued on Monday, November 11th. Northland Capmk analyst G. Gibas now forecasts that the company will post earnings of ($0.79) per share for the year, down from their previous forecast of ($0.41). The consensus estimate for DraftKings’ current full-year earnings is ($0.73) per share. Northland Capmk also issued estimates for DraftKings’ Q4 2024 earnings at ($0.03) EPS, Q1 2025 earnings at ($0.09) EPS, Q3 2025 earnings at ($0.27) EPS and FY2025 earnings at $0.18 EPS.

A number of other equities research analysts have also recently weighed in on DKNG. JMP Securities upped their price target on DraftKings from $51.00 to $52.00 and gave the stock a “market outperform” rating in a report on Monday, November 11th. BMO Capital Markets restated an “outperform” rating and issued a $48.00 price target on shares of DraftKings in a report on Wednesday, October 16th. Morgan Stanley upped their price target on DraftKings from $47.00 to $48.00 and gave the stock an “overweight” rating in a report on Tuesday, October 22nd. BNP Paribas upgraded DraftKings from an “underperform” rating to a “neutral” rating and set a $35.00 price target on the stock in a report on Tuesday, September 10th. Finally, Macquarie upped their price target on DraftKings from $50.00 to $51.00 and gave the stock an “outperform” rating in a report on Monday, November 11th. Three investment analysts have rated the stock with a hold rating and twenty-four have given a buy rating to the company’s stock. According to MarketBeat, DraftKings presently has an average rating of “Moderate Buy” and a consensus target price of $50.85.

DraftKings Stock Performance

Shares of DKNG stock opened at $39.84 on Thursday. The company has a market cap of $35.00 billion, a price-to-earnings ratio of -45.27 and a beta of 1.82. The stock has a 50 day simple moving average of $38.35 and a 200-day simple moving average of $37.94. DraftKings has a 12-month low of $28.69 and a 12-month high of $49.57. The company has a current ratio of 1.00, a quick ratio of 1.11 and a debt-to-equity ratio of 1.17.

DraftKings (NASDAQ:DKNG) last issued its earnings results on Thursday, November 7th. The company reported ($0.60) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.42) by ($0.18). The business had revenue of $1.10 billion for the quarter, compared to analysts’ expectations of $1.12 billion. DraftKings had a negative return on equity of 41.23% and a negative net margin of 9.06%.

Hedge Funds Weigh In On DraftKings

Hedge funds and other institutional investors have recently bought and sold shares of the stock. LRI Investments LLC acquired a new position in DraftKings in the first quarter valued at approximately $31,000. Alta Advisers Ltd bought a new stake in shares of DraftKings during the second quarter valued at approximately $38,000. Redwood Wealth Management Group LLC bought a new stake in shares of DraftKings during the second quarter valued at approximately $39,000. Delos Wealth Advisors LLC bought a new stake in shares of DraftKings during the third quarter valued at approximately $43,000. Finally, V Square Quantitative Management LLC bought a new stake in shares of DraftKings during the third quarter valued at approximately $46,000. 37.70% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In related news, insider Jason Robins sold 200,000 shares of DraftKings stock in a transaction dated Wednesday, August 21st. The stock was sold at an average price of $35.25, for a total value of $7,050,000.00. Following the completion of the transaction, the insider now directly owns 2,678,082 shares in the company, valued at approximately $94,402,390.50. This trade represents a 6.95 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Paul Liberman sold 88,441 shares of DraftKings stock in a transaction dated Monday, August 26th. The stock was sold at an average price of $35.64, for a total value of $3,152,037.24. Following the completion of the transaction, the insider now owns 2,498,483 shares of the company’s stock, valued at $89,045,934.12. This trade represents a 3.42 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 1,020,536 shares of company stock worth $39,966,465 over the last ninety days. Corporate insiders own 51.19% of the company’s stock.

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.