DraftKings (NASDAQ:DKNG) Raised to Market Perform at Northland Securities

DraftKings (NASDAQ:DKNG) was upgraded by equities research analysts at Northland Securities from an “under perform” rating to a “market perform” rating in a report issued on Monday, Marketbeat reports.

Several other equities research analysts have also recently weighed in on DKNG. Needham & Company LLC reaffirmed a “buy” rating and set a $52.00 price objective on shares of DraftKings in a research report on Monday. JMP Securities cut their price target on shares of DraftKings from $54.00 to $51.00 and set a “market outperform” rating for the company in a report on Wednesday, October 1st. Mizuho reduced their price target on shares of DraftKings from $58.00 to $54.00 and set an “outperform” rating on the stock in a research report on Tuesday, October 7th. Northland Capmk cut shares of DraftKings from a “strong-buy” rating to a “strong sell” rating in a research note on Wednesday, October 1st. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of DraftKings in a research note on Wednesday, October 8th. Twenty-six research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, DraftKings presently has a consensus rating of “Moderate Buy” and an average target price of $48.66.

DraftKings Price Performance

DraftKings stock opened at $30.50 on Monday. The stock’s fifty day moving average price is $37.18 and its two-hundred day moving average price is $39.43. DraftKings has a one year low of $26.23 and a one year high of $53.61. The company has a debt-to-equity ratio of 2.51, a current ratio of 1.10 and a quick ratio of 1.34. The firm has a market cap of $15.18 billion, a PE ratio of -53.51, a price-to-earnings-growth ratio of 1.02 and a beta of 1.86.

DraftKings (NASDAQ:DKNG) last released its earnings results on Thursday, November 6th. The company reported ($0.26) earnings per share for the quarter, missing analysts’ consensus estimates of $0.01 by ($0.27). The company had revenue of $1.14 billion for the quarter, compared to the consensus estimate of $1.40 billion. DraftKings had a negative net margin of 4.90% and a negative return on equity of 22.84%. The business’s revenue was up 4.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.60) earnings per share. DraftKings has set its FY 2025 guidance at EPS. As a group, research analysts expect that DraftKings will post 0.64 EPS for the current fiscal year.

Insider Activity at DraftKings

In other news, CFO Alan Wayne Ellingson sold 44,693 shares of the company’s stock in a transaction on Tuesday, August 19th. The shares were sold at an average price of $44.90, for a total transaction of $2,006,715.70. Following the completion of the transaction, the chief financial officer directly owned 128,131 shares in the company, valued at approximately $5,753,081.90. This represents a 25.86% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Ryan R. Moore sold 76,390 shares of the stock in a transaction on Thursday, August 21st. The shares were sold at an average price of $45.92, for a total value of $3,507,828.80. Following the completion of the transaction, the director owned 402 shares of the company’s stock, valued at $18,459.84. The trade was a 99.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 337,916 shares of company stock valued at $14,118,881 in the last quarter. Insiders own 47.08% of the company’s stock.

Hedge Funds Weigh In On DraftKings

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Bank of Jackson Hole Trust acquired a new stake in shares of DraftKings during the first quarter valued at about $31,000. Root Financial Partners LLC acquired a new position in shares of DraftKings in the third quarter valued at approximately $33,000. TD Private Client Wealth LLC raised its holdings in DraftKings by 54.4% in the 2nd quarter. TD Private Client Wealth LLC now owns 800 shares of the company’s stock valued at $34,000 after buying an additional 282 shares during the last quarter. Summit Securities Group LLC boosted its position in DraftKings by 349.1% during the 1st quarter. Summit Securities Group LLC now owns 1,042 shares of the company’s stock worth $35,000 after buying an additional 810 shares during the period. Finally, AlphaQuest LLC acquired a new stake in DraftKings during the 3rd quarter worth approximately $41,000. Institutional investors and hedge funds 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.