DraftKings (NASDAQ:DKNG) Shares Gap Down Following Analyst Downgrade

Shares of DraftKings Inc. (NASDAQ:DKNG) gapped down before the market opened on Tuesday after TD Cowen lowered their price target on the stock from $55.00 to $51.00. The stock had previously closed at $41.39, but opened at $40.23. TD Cowen currently has a buy rating on the stock. DraftKings shares last traded at $40.15, with a volume of 1,627,962 shares changing hands.

Other research analysts have also recently issued research reports about the company. Needham & Company LLC restated a “buy” rating and issued a $60.00 target price on shares of DraftKings in a research note on Friday, November 8th. Morgan Stanley upped their target price on shares of DraftKings from $47.00 to $48.00 and gave the company an “overweight” rating in a research report on Tuesday, October 22nd. Macquarie lifted their price target on DraftKings from $50.00 to $51.00 and gave the stock an “outperform” rating in a research report on Monday, November 11th. Barclays upped their price objective on DraftKings from $45.00 to $50.00 and gave the company an “overweight” rating in a research report on Monday, November 11th. Finally, Wells Fargo & Company boosted their target price on DraftKings from $47.00 to $52.00 and gave the company an “overweight” rating in a research report on Thursday, October 17th. Three analysts have rated the stock with a hold rating and twenty-three have given a buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $50.92.

Insider Buying and Selling at DraftKings

In other news, insider Jason Robins sold 3,151 shares of the business’s stock in a transaction that occurred on Thursday, November 21st. The shares were sold at an average price of $43.71, for a total value of $137,730.21. Following the sale, 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 legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Paul Liberman sold 532,095 shares of the business’s stock in a transaction on Thursday, December 26th. The shares were sold at an average price of $38.30, for a total value of $20,379,238.50. Following the completion of the sale, the insider now owns 68,654 shares in the company, valued at $2,629,448.20. This represents a 88.57 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 963,742 shares of company stock worth $38,082,888 in the last ninety days. 48.94% of the stock is owned by insiders.

Institutional Trading of DraftKings

A number of hedge funds and other institutional investors have recently made changes to their positions in DKNG. Stonebridge Financial Group LLC acquired a new stake in shares of DraftKings in the 4th quarter valued at approximately $28,000. Synergy Asset Management LLC acquired a new position in DraftKings during the fourth quarter worth about $30,000. Delos Wealth Advisors LLC purchased a new stake in shares of DraftKings during the 3rd quarter worth approximately $43,000. V Square Quantitative Management LLC acquired a new stake in DraftKings in the third quarter valued at $46,000. Finally, Creative Financial Designs Inc. ADV lifted its holdings in shares of DraftKings by 36.8% in the third quarter. Creative Financial Designs Inc. ADV now owns 1,190 shares of the company’s stock valued at $47,000 after purchasing an additional 320 shares in the last quarter. Institutional investors and hedge funds own 37.70% of the company’s stock.

DraftKings Price Performance

The company has a 50 day moving average of $40.38 and a 200 day moving average of $38.33. 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 stock has a market capitalization of $37.31 billion, a price-to-earnings ratio of -48.01, a price-to-earnings-growth ratio of 3.14 and a beta of 1.93.

DraftKings (NASDAQ:DKNG) last announced 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). DraftKings had a negative return on equity of 41.23% and a negative net margin of 9.06%. The business had revenue of $1.10 billion for the quarter, compared to analysts’ expectations of $1.12 billion. As a group, equities research analysts forecast that DraftKings Inc. will post -0.93 EPS for the current fiscal year.

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.