DraftKings (NASDAQ:DKNG) Hits New 52-Week Low After Analyst Downgrade

DraftKings Inc. (NASDAQ:DKNG)’s stock price reached a new 52-week low during trading on Tuesday after Canaccord Genuity Group lowered their price target on the stock from $54.00 to $50.00. Canaccord Genuity Group currently has a buy rating on the stock. DraftKings traded as low as $25.73 and last traded at $26.3380, with a volume of 10502794 shares changing hands. The stock had previously closed at $27.42.

A number of other research firms have also commented on DKNG. Wells Fargo & Company started coverage on DraftKings in a report on Tuesday, November 18th. They issued an “equal weight” rating and a $31.00 target price for the company. BTIG Research upped their price target on DraftKings from $42.00 to $45.00 and gave the company a “buy” rating in a report on Friday, December 5th. Bank of America downgraded DraftKings from a “buy” rating to a “neutral” rating and reduced their price objective for the stock from $48.00 to $35.00 in a report on Tuesday, November 4th. UBS Group restated a “buy” rating on shares of DraftKings in a research note on Wednesday, January 7th. Finally, Stifel Nicolaus dropped their price target on shares of DraftKings from $46.00 to $44.00 and set a “buy” rating on the stock in a report on Friday. Twenty-four research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $46.10.

Insider Buying and Selling at DraftKings

In other news, insider R Stanton Dodge sold 52,777 shares of the stock in a transaction that occurred on Tuesday, January 20th. The shares were sold at an average price of $32.01, for a total value of $1,689,391.77. Following the transaction, the insider owned 500,000 shares in the company, valued at $16,005,000. This represents a 9.55% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Harry Sloan bought 25,000 shares of DraftKings stock in a transaction on Tuesday, November 11th. The shares were acquired at an average cost of $30.30 per share, with a total value of $757,500.00. Following the completion of the acquisition, the director owned 249,712 shares of the company’s stock, valued at $7,566,273.60. The trade was a 11.13% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders sold 166,752 shares of company stock worth $5,252,044 over the last 90 days. 47.08% of the stock is owned by company insiders.

Hedge Funds Weigh In On DraftKings

Several institutional investors and hedge funds have recently bought and sold shares of DKNG. Viking Global Investors LP bought a new position in shares of DraftKings in the third quarter worth about $561,125,000. Norges Bank purchased a new stake in DraftKings in the 2nd quarter worth approximately $362,554,000. AQR Capital Management LLC raised its stake in DraftKings by 63.5% during the 3rd quarter. AQR Capital Management LLC now owns 11,685,672 shares of the company’s stock worth $437,044,000 after acquiring an additional 4,538,007 shares during the period. Brown Advisory Inc. raised its stake in DraftKings by 53,272.1% during the 2nd quarter. Brown Advisory Inc. now owns 4,056,280 shares of the company’s stock worth $173,974,000 after acquiring an additional 4,048,680 shares during the period. Finally, Eminence Capital LP lifted its holdings in DraftKings by 31.9% during the third quarter. Eminence Capital LP now owns 6,274,863 shares of the company’s stock valued at $234,680,000 after purchasing an additional 1,517,413 shares in the last quarter. 37.70% of the stock is currently owned by hedge funds and other institutional investors.

DraftKings Price Performance

The firm has a market cap of $13.32 billion, a PE ratio of -46.95, a P/E/G ratio of 0.47 and a beta of 1.67. The firm’s fifty day simple moving average is $33.45 and its two-hundred day simple moving average is $37.18. The company has a quick ratio of 1.09, a current ratio of 1.10 and a debt-to-equity ratio of 2.51.

DraftKings (NASDAQ:DKNG) last announced its quarterly earnings data on Friday, November 7th. The company reported ($0.26) EPS for the quarter, missing the consensus estimate of $0.01 by ($0.27). The firm 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 firm’s revenue for the quarter was up 4.4% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.60) earnings per share. As a group, research analysts expect that DraftKings Inc. will post 0.64 EPS for the current year.

DraftKings Company Profile

DraftKings Inc is a leading digital sports entertainment and gaming company specializing in daily fantasy sports, sports betting and iGaming products. The company provides an integrated platform where users can participate in daily fantasy contests, place wagers on professional sports events, and enjoy a range of online casino-style games. DraftKings’ proprietary technology supports real-time odds, live scoring and advanced analytics to enhance the user experience across mobile and desktop applications.

Founded in 2012 by co-founders Jason Robins, Matthew Kalish and Paul Liberman, DraftKings began as a daily fantasy sports provider and rapidly expanded into regulated sports betting following legislative changes in the United States.