Stock Traders Purchase Large Volume of DraftKings Call Options (NASDAQ:DKNG)

DraftKings Inc. (NASDAQ:DKNG) saw unusually large options trading activity on Tuesday. Stock traders purchased 72,898 call options on the stock. This is an increase of 37% compared to the average daily volume of 53,170 call options.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on DKNG shares. Mizuho raised their target price on shares of DraftKings from $54.00 to $62.00 and gave the company an “outperform” rating in a research note on Friday, October 18th. Morgan Stanley raised their price objective on DraftKings from $47.00 to $48.00 and gave the company an “overweight” rating in a research report on Tuesday, October 22nd. Needham & Company LLC reiterated a “buy” rating and issued a $60.00 target price on shares of DraftKings in a research report on Friday, November 8th. TD Cowen cut their price target on DraftKings from $55.00 to $51.00 and set a “buy” rating for the company in a report on Tuesday. Finally, BMO Capital Markets reaffirmed an “outperform” rating and set a $48.00 price objective on shares of DraftKings in a report on Wednesday, October 16th. Three investment analysts have rated the stock with a hold rating and twenty-three have given a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $50.92.

Insider Buying and Selling

In related news, insider Jason Robins sold 3,151 shares of the business’s stock in a transaction that occurred on Thursday, November 21st. The stock was sold at an average price of $43.71, for a total value of $137,730.21. Following the transaction, the insider now directly owns 2,631,033 shares of the company’s stock, valued at approximately $115,002,452.43. The trade was a 0.12 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Paul Liberman sold 200,000 shares of the stock in a transaction that occurred on Friday, January 10th. The shares were sold at an average price of $39.00, for a total transaction of $7,800,000.00. Following the sale, the insider now directly owns 1,342,722 shares of the company’s stock, valued at approximately $52,366,158. This trade represents a 12.96 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 963,742 shares of company stock valued at $38,082,888. 48.94% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On DraftKings

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Baillie Gifford & Co. purchased a new position in shares of DraftKings during the fourth quarter worth approximately $246,765,000. Fred Alger Management LLC boosted its holdings in shares of DraftKings by 46.6% in the third quarter. Fred Alger Management LLC now owns 4,643,852 shares of the company’s stock valued at $182,039,000 after purchasing an additional 1,476,003 shares during the period. FMR LLC grew its stake in DraftKings by 14.7% in the third quarter. FMR LLC now owns 6,467,066 shares of the company’s stock worth $253,509,000 after purchasing an additional 826,626 shares in the last quarter. Mizuho Securities USA LLC purchased a new position in DraftKings during the 3rd quarter worth $28,028,000. Finally, Blue Whale Capital LLP raised its position in DraftKings by 59.7% during the 3rd quarter. Blue Whale Capital LLP now owns 1,644,774 shares of the company’s stock valued at $64,475,000 after purchasing an additional 615,011 shares in the last quarter. Institutional investors own 37.70% of the company’s stock.

DraftKings Price Performance

DKNG opened at $42.24 on Thursday. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 1.17. The business has a fifty day moving average of $40.40 and a 200 day moving average of $38.30. DraftKings has a 52-week low of $28.69 and a 52-week high of $49.57. The stock has a market cap of $37.20 billion, a P/E ratio of -48.00, a PEG ratio of 3.14 and a beta of 1.93.

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 company had revenue of $1.10 billion for the quarter, compared to analysts’ expectations of $1.12 billion. DraftKings had a negative net margin of 9.06% and a negative return on equity of 41.23%. As a group, sell-side analysts anticipate that DraftKings will post -0.93 EPS for the current 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.