DraftKings (NASDAQ:DKNG) Rating Lowered to Strong Sell at Northland Capmk

DraftKings (NASDAQ:DKNG) was downgraded by Northland Capmk from a “strong-buy” rating to a “strong sell” rating in a research report issued to clients and investors on Wednesday,Zacks.com reports.

A number of other research analysts also recently issued reports on DKNG. Sanford C. Bernstein assumed coverage on DraftKings in a report on Wednesday, June 4th. They set an “outperform” rating and a $46.00 price target on the stock. Susquehanna reissued a “positive” rating and issued a $64.00 price target on shares of DraftKings in a research report on Friday, August 8th. JMP Securities decreased their price objective on shares of DraftKings from $54.00 to $51.00 and set a “market outperform” rating for the company in a report on Wednesday. Northland Securities restated an “under perform” rating and issued a $33.00 price objective (down from $53.00) on shares of DraftKings in a report on Wednesday. Finally, Benchmark boosted their target price on shares of DraftKings from $50.00 to $53.00 and gave the company a “buy” rating in a research note on Thursday, August 7th. Twenty-six investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $53.89.

DraftKings Stock Down 0.8%

DKNG opened at $34.89 on Wednesday. The company has a market cap of $17.32 billion, a P/E ratio of -53.68, a P/E/G ratio of 0.83 and a beta of 1.99. The business’s 50-day moving average price is $44.44 and its 200-day moving average price is $39.80. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 1.82. DraftKings has a 12 month low of $29.64 and a 12 month high of $53.61.

DraftKings (NASDAQ:DKNG) last announced its quarterly earnings results on Thursday, August 7th. The company reported $0.30 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.16 by $0.14. DraftKings had a negative return on equity of 30.06% and a negative net margin of 5.63%.The company had revenue of $1.51 billion for the quarter, compared to the consensus estimate of $1.39 billion. During the same quarter in the previous year, the business earned $0.12 EPS. DraftKings’s revenue was up 36.9% compared to the same quarter last year. DraftKings has set its FY 2025 guidance at EPS. On average, equities analysts expect that DraftKings will post 0.64 EPS for the current year.

Insider Buying and Selling

In other DraftKings news, insider R Stanton Dodge sold 105,554 shares of the stock in a transaction dated Tuesday, August 5th. The shares were sold at an average price of $44.60, for a total transaction of $4,707,708.40. Following the completion of the transaction, the insider owned 500,000 shares of the company’s stock, valued at $22,300,000. This represents a 17.43% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Jocelyn Moore sold 4,861 shares of the stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $43.21, for a total transaction of $210,043.81. Following the transaction, the director directly owned 1,461 shares of the company’s stock, valued at $63,129.81. This trade represents a 76.89% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 658,331 shares of company stock worth $29,285,365 in the last three months. Corporate insiders own 51.19% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of DKNG. Vanguard Group Inc. grew its stake in shares of DraftKings by 1.6% during the second quarter. Vanguard Group Inc. now owns 43,761,344 shares of the company’s stock valued at $1,876,924,000 after buying an additional 670,884 shares during the last quarter. T. Rowe Price Investment Management Inc. increased its position in shares of DraftKings by 0.7% during the first quarter. T. Rowe Price Investment Management Inc. now owns 18,700,071 shares of the company’s stock worth $621,030,000 after acquiring an additional 130,434 shares during the period. Geode Capital Management LLC increased its position in shares of DraftKings by 5.4% during the second quarter. Geode Capital Management LLC now owns 9,014,088 shares of the company’s stock worth $385,552,000 after acquiring an additional 458,452 shares during the period. Norges Bank purchased a new position in DraftKings during the second quarter valued at approximately $362,554,000. Finally, Baillie Gifford & Co. increased its holdings in DraftKings by 26.5% during the first quarter. Baillie Gifford & Co. now owns 8,390,236 shares of the company’s stock valued at $278,640,000 after buying an additional 1,756,778 shares during the period. Institutional investors own 37.70% of the company’s stock.

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.