Needham & Company LLC Reiterates Buy Rating for DraftKings (NASDAQ:DKNG)

DraftKings (NASDAQ:DKNG)‘s stock had its “buy” rating restated by stock analysts at Needham & Company LLC in a report released on Monday,Benzinga reports. They currently have a $52.00 price target on the stock. Needham & Company LLC’s price target would indicate a potential upside of 70.49% from the stock’s previous close.

Several other analysts have also recently weighed in on the company. Canaccord Genuity Group lowered their price target on DraftKings from $60.00 to $54.00 and set a “buy” rating on the stock in a report on Friday, November 7th. Zacks Research cut shares of DraftKings from a “hold” rating to a “strong sell” rating in a research report on Thursday, November 6th. Barclays reiterated an “overweight” rating and set a $54.00 target price (up from $51.00) on shares of DraftKings in a research report on Friday, August 8th. UBS Group decreased their price target on shares of DraftKings from $58.00 to $56.00 and set a “buy” rating on the stock in a report on Wednesday, September 24th. Finally, Northland Securities set a $30.00 price objective on shares of DraftKings in a report on Monday, October 13th. Twenty-six investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $48.66.

DraftKings Stock Down 0.1%

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

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

Insider Activity

In other DraftKings news, CFO Alan Wayne Ellingson sold 44,693 shares of the business’s stock in a transaction on Tuesday, August 19th. The shares were sold at an average price of $44.90, for a total value of $2,006,715.70. Following the completion of the sale, the chief financial officer directly owned 128,131 shares of the company’s stock, valued at $5,753,081.90. The trade was a 25.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider R Stanton Dodge sold 52,777 shares of the company’s stock in a transaction dated Thursday, November 6th. The shares were sold at an average price of $29.00, for a total transaction of $1,530,533.00. Following the sale, the insider owned 500,454 shares of the company’s stock, valued at approximately $14,513,166. The trade was a 9.54% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 337,916 shares of company stock valued at $14,118,881. Corporate insiders own 47.08% of the company’s stock.

Institutional Investors Weigh In On DraftKings

Hedge funds and other institutional investors have recently modified their holdings of the stock. Norges Bank bought a new position in DraftKings during the 2nd quarter worth approximately $362,554,000. AQR Capital Management LLC boosted its stake in shares of DraftKings by 2,138.9% during the first quarter. AQR Capital Management LLC now owns 4,696,244 shares of the company’s stock valued at $155,962,000 after purchasing an additional 4,486,488 shares during the period. Brown Advisory Inc. grew its holdings in shares of DraftKings by 53,272.1% in the second quarter. Brown Advisory Inc. now owns 4,056,280 shares of the company’s stock worth $173,974,000 after purchasing an additional 4,048,680 shares during the last quarter. Eminence Capital LP grew its holdings in shares of DraftKings by 195.2% in the first quarter. Eminence Capital LP now owns 5,178,083 shares of the company’s stock worth $171,964,000 after purchasing an additional 3,423,909 shares during the last quarter. Finally, Nuveen LLC purchased a new position in shares of DraftKings in the first quarter worth $107,739,000. Institutional investors 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.