DraftKings (NASDAQ:DKNG) Issues Quarterly Earnings Results

DraftKings (NASDAQ:DKNG) released its quarterly earnings results on Thursday. The company reported ($0.60) EPS for the quarter, missing the consensus estimate of ($0.42) by ($0.18), reports. DraftKings had a negative net margin of 9.45% and a negative return on equity of 43.11%. The firm had revenue of $1.10 billion for the quarter, compared to analysts’ expectations of $1.12 billion. DraftKings updated its FY 2025 guidance to EPS and its FY 2024 guidance to EPS.

DraftKings Price Performance

DKNG stock traded up $1.15 during trading on Friday, hitting $40.13. The stock had a trading volume of 30,274,855 shares, compared to its average volume of 10,357,750. DraftKings has a twelve month low of $28.69 and a twelve month high of $49.57. The company’s 50-day moving average price is $37.55 and its two-hundred day moving average price is $37.95. The company has a debt-to-equity ratio of 0.97, a current ratio of 1.11 and a quick ratio of 1.11. The stock has a market capitalization of $35.26 billion, a P/E ratio of -45.09 and a beta of 1.82.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on DKNG. Macquarie reaffirmed an “outperform” rating and set a $50.00 price target on shares of DraftKings in a research report on Monday, August 26th. Wells Fargo & Company raised their price target on DraftKings from $47.00 to $52.00 and gave the stock an “overweight” rating in a report on Thursday, October 17th. Needham & Company LLC reaffirmed a “buy” rating and issued a $60.00 price objective on shares of DraftKings in a research report on Friday. The Goldman Sachs Group dropped their target price on shares of DraftKings from $60.00 to $54.00 and set a “buy” rating on the stock in a research report on Monday, August 5th. Finally, Truist Financial reaffirmed a “buy” rating and issued a $50.00 price target on shares of DraftKings in a report on Wednesday, August 14th. Three analysts have rated the stock with a hold rating and twenty-four have assigned a buy rating to the company’s stock. According to MarketBeat.com, DraftKings currently has a consensus rating of “Moderate Buy” and an average target price of $50.22.

Insider Buying and Selling at DraftKings

In related news, insider Jason Robins sold 200,000 shares of the business’s stock in a transaction that occurred on Wednesday, August 21st. The stock was sold at an average price of $35.25, for a total transaction of $7,050,000.00. Following the completion of the sale, the insider now directly owns 2,678,082 shares in the company, valued at approximately $94,402,390.50. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. In other DraftKings news, insider Jason Robins sold 200,000 shares of the stock in a transaction dated Wednesday, August 21st. The shares were sold at an average price of $35.25, for a total value of $7,050,000.00. Following the completion of the sale, the insider now owns 2,678,082 shares in the company, valued at approximately $94,402,390.50. This represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Paul Liberman sold 88,441 shares of the firm’s stock in a transaction that occurred on Friday, October 25th. The stock was sold at an average price of $36.41, for a total transaction of $3,220,136.81. Following the completion of the transaction, the insider now directly owns 1,923,483 shares in the company, valued at $70,034,016.03. This trade represents a 0.00 % 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 valued at $39,966,465 over the last quarter. 48.94% of the stock is currently owned by insiders.

Institutional Trading of DraftKings

Several large investors have recently added to or reduced their stakes in the stock. LRI Investments LLC acquired a new stake in DraftKings during the first quarter worth about $31,000. Alta Advisers Ltd acquired a new stake in shares of DraftKings during the 2nd quarter worth approximately $38,000. Redwood Wealth Management Group LLC purchased a new stake in shares of DraftKings during the 2nd quarter valued at approximately $39,000. St. Johns Investment Management Company LLC acquired a new position in DraftKings in the second quarter valued at approximately $46,000. Finally, V Square Quantitative Management LLC purchased a new position in DraftKings in the third quarter worth approximately $46,000. 37.70% of the stock is currently owned by hedge funds and other institutional investors.

About DraftKings

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.