DraftKings (NASDAQ:DKNG) Stock Price Down 5.5% – Here’s Why

Shares of DraftKings Inc. (NASDAQ:DKNG) traded down 5.5% during trading on Tuesday . The stock traded as low as $38.44 and last traded at $38.29. 7,185,981 shares changed hands during mid-day trading, a decline of 32% from the average session volume of 10,495,766 shares. The stock had previously closed at $40.52.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on DKNG shares. Stifel Nicolaus lifted their price objective on DraftKings from $48.00 to $57.00 and gave the company a “buy” rating in a report on Tuesday, February 18th. Barclays lifted their price target on shares of DraftKings from $50.00 to $60.00 and gave the company an “overweight” rating in a report on Tuesday, February 18th. Morgan Stanley upped their price objective on shares of DraftKings from $49.00 to $53.00 and gave the stock an “overweight” rating in a research note on Monday, February 24th. JMP Securities reaffirmed a “market outperform” rating and set a $50.00 price objective on shares of DraftKings in a report on Friday, February 14th. Finally, Truist Financial boosted their target price on DraftKings from $50.00 to $60.00 and gave the stock a “buy” rating in a report on Tuesday, February 18th. Three research analysts have rated the stock with a hold rating and twenty-five have issued a buy rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $54.44.

DraftKings Trading Down 3.9 %

The business has a 50 day simple moving average of $42.18 and a 200-day simple moving average of $40.34. The stock has a market capitalization of $19.08 billion, a price-to-earnings ratio of -36.75, a PEG ratio of 1.43 and a beta of 2.07. The company has a debt-to-equity ratio of 1.24, a current ratio of 0.93 and a quick ratio of 1.00.

DraftKings (NASDAQ:DKNG) last posted its earnings results on Thursday, February 13th. The company reported ($0.28) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.35). DraftKings had a negative return on equity of 48.13% and a negative net margin of 10.64%. As a group, equities analysts expect that DraftKings Inc. will post 0.64 earnings per share for the current year.

Insider Activity at DraftKings

In other news, insider Jason Robins sold 666,651 shares of the business’s stock in a transaction on Tuesday, February 25th. The shares were sold at an average price of $42.42, for a total value of $28,279,335.42. Following the sale, the insider now owns 3,336,195 shares of the company’s stock, valued at $141,521,391.90. The trade was a 16.65 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider R Stanton Dodge sold 52,777 shares of DraftKings stock in a transaction on Friday, March 14th. The shares were sold at an average price of $37.62, for a total transaction of $1,985,470.74. Following the completion of the sale, the insider now owns 706,620 shares in the company, valued at $26,583,044.40. The trade was a 6.95 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 2,663,966 shares of company stock valued at $112,550,362. 51.19% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. Janus Henderson Group PLC raised its position in DraftKings by 31,346.8% during the fourth quarter. Janus Henderson Group PLC now owns 9,381,853 shares of the company’s stock worth $349,005,000 after acquiring an additional 9,352,019 shares in the last quarter. Norges Bank acquired a new position in shares of DraftKings during the 4th quarter worth about $276,328,000. FMR LLC raised its holdings in shares of DraftKings by 110.6% in the 4th quarter. FMR LLC now owns 13,617,448 shares of the company’s stock valued at $506,569,000 after purchasing an additional 7,150,382 shares during the period. Baillie Gifford & Co. acquired a new stake in DraftKings in the 4th quarter valued at about $246,765,000. Finally, Eminence Capital LP acquired a new stake in DraftKings in the 4th quarter valued at about $65,255,000. Institutional investors and hedge funds own 37.70% 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.