DraftKings (NASDAQ:DKNG) Lowered to “Hold” Rating by Wall Street Zen

Wall Street Zen downgraded shares of DraftKings (NASDAQ:DKNG) from a buy rating to a hold rating in a research note released on Friday morning.

Several other equities analysts have also issued reports on the stock. Deutsche Bank Aktiengesellschaft set a $47.00 price objective on shares of DraftKings and gave the company a “hold” rating in a report on Friday, August 8th. JMP Securities dropped their target price on DraftKings from $54.00 to $51.00 and set a “market outperform” rating on the stock in a research report on Wednesday. BTIG Research reduced their price target on DraftKings from $53.00 to $45.00 and set a “buy” rating for the company in a research report on Thursday. Northland Capmk cut DraftKings from a “strong-buy” rating to a “strong sell” rating in a research note on Wednesday. Finally, Barclays reiterated an “overweight” rating and issued a $54.00 target price (up previously from $51.00) on shares of DraftKings in a research note on Friday, August 8th. Twenty-six research analysts have rated the stock with a Buy rating, one has given a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $53.89.

DraftKings Stock Performance

Shares of DraftKings stock opened at $35.37 on Friday. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 1.82. The stock’s fifty day moving average price is $44.25 and its 200-day moving average price is $39.79. The firm has a market cap of $17.56 billion, a P/E ratio of -54.42, a P/E/G ratio of 0.91 and a beta of 1.99. DraftKings has a 12 month low of $29.64 and a 12 month high of $53.61.

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

Insider Transactions at DraftKings

In related news, insider Matthew Kalish sold 210,000 shares of DraftKings stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $42.90, for a total transaction of $9,009,000.00. Following the completion of the sale, the insider owned 4,190,233 shares of the company’s stock, valued at $179,760,995.70. The trade was a 4.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Jocelyn Moore sold 4,861 shares of the company’s stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $43.21, for a total value of $210,043.81. Following the completion of the sale, the director owned 1,461 shares in the company, valued at approximately $63,129.81. This represents a 76.89% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 658,331 shares of company stock valued at $29,285,365. 51.19% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. GAMMA Investing LLC raised its stake in shares of DraftKings by 5,118.8% during the 1st quarter. GAMMA Investing LLC now owns 48,952 shares of the company’s stock valued at $1,626,000 after buying an additional 48,014 shares during the last quarter. Rhumbline Advisers grew its holdings in DraftKings by 0.4% during the first quarter. Rhumbline Advisers now owns 586,722 shares of the company’s stock worth $19,485,000 after acquiring an additional 2,177 shares during the period. Merit Financial Group LLC purchased a new position in DraftKings during the first quarter valued at approximately $1,006,000. RFG Advisory LLC lifted its holdings in DraftKings by 37.1% in the first quarter. RFG Advisory LLC now owns 8,944 shares of the company’s stock valued at $297,000 after acquiring an additional 2,420 shares during the period. Finally, Stablepoint Partners LLC boosted its position in DraftKings by 7.5% in the 1st quarter. Stablepoint Partners LLC now owns 7,207 shares of the company’s stock worth $239,000 after purchasing an additional 501 shares in the last quarter. 37.70% of the stock is currently owned by institutional investors and hedge funds.

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.