DraftKings (NASDAQ:DKNG) Price Target Lowered to $50.00 at Canaccord Genuity Group

DraftKings (NASDAQ:DKNG) had its price target cut by Canaccord Genuity Group from $54.00 to $50.00 in a report released on Tuesday, MarketBeat reports. They currently have a buy rating on the stock.

Other equities analysts also recently issued reports about the stock. Berenberg Bank set a $43.00 price target on shares of DraftKings and gave the stock a “buy” rating in a report on Thursday, October 9th. Macquarie dropped their price target on DraftKings from $50.00 to $48.00 and set an “outperform” rating for the company in a research note on Monday, November 10th. Wells Fargo & Company initiated coverage on DraftKings in a research note on Tuesday, November 18th. They issued an “equal weight” rating and a $31.00 price target on the stock. Bank of America cut shares of DraftKings from a “buy” rating to a “neutral” rating and dropped their target price for the stock from $48.00 to $35.00 in a research report on Tuesday, November 4th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of DraftKings in a research note on Wednesday, January 21st. Twenty-four analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, DraftKings presently has an average rating of “Moderate Buy” and an average target price of $46.10.

DraftKings Stock Performance

Shares of DraftKings stock opened at $26.76 on Tuesday. The business has a 50-day simple moving average of $33.45 and a 200 day simple moving average of $37.18. DraftKings has a one year low of $25.73 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 1.09. The firm has a market capitalization of $13.32 billion, a price-to-earnings ratio of -46.95, a PEG ratio of 0.47 and a beta of 1.67.

DraftKings (NASDAQ:DKNG) last released its quarterly earnings data on Friday, November 7th. The company reported ($0.26) earnings per share for the quarter, missing the consensus estimate of $0.01 by ($0.27). The business had revenue of $1.14 billion for the quarter, compared to analyst estimates of $1.40 billion. DraftKings had a negative return on equity of 22.84% and a negative net margin of 4.90%.The business’s quarterly revenue was up 4.4% on a year-over-year basis. During the same quarter in the previous year, the company posted ($0.60) EPS. On average, research analysts anticipate that DraftKings will post 0.64 earnings per share for the current fiscal year.

Insider Activity at DraftKings

In other news, Director Harry Sloan acquired 25,000 shares of DraftKings stock in a transaction on Tuesday, November 11th. The shares were bought at an average cost of $30.30 per share, for a total transaction of $757,500.00. Following the acquisition, the director directly owned 249,712 shares of the company’s stock, valued at $7,566,273.60. This trade represents a 11.13% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO Alan Wayne Ellingson sold 8,421 shares of the stock in a transaction that occurred on Friday, November 14th. The shares were sold at an average price of $29.23, for a total transaction of $246,145.83. Following the sale, the chief financial officer directly owned 126,990 shares of the company’s stock, valued at $3,711,917.70. The trade was a 6.22% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 166,752 shares of company stock valued at $5,252,044 over the last 90 days. 47.08% of the stock is currently owned by insiders.

Institutional Investors Weigh In On DraftKings

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Dagco Inc. acquired a new stake in DraftKings during the 4th quarter worth approximately $26,000. Ameriflex Group Inc. lifted its stake in DraftKings by 100.0% in the third quarter. Ameriflex Group Inc. now owns 810 shares of the company’s stock valued at $30,000 after buying an additional 405 shares during the last quarter. Root Financial Partners LLC purchased a new stake in shares of DraftKings in the third quarter valued at about $33,000. Asset Dedication LLC acquired a new position in shares of DraftKings in the third quarter valued at approximately $37,000. Finally, Montag A & Associates Inc. boosted its holdings in shares of DraftKings by 82.5% in the fourth quarter. Montag A & Associates Inc. now owns 1,106 shares of the company’s stock valued at $38,000 after acquiring an additional 500 shares in the last quarter. Institutional investors and hedge funds own 37.70% of the company’s stock.

About DraftKings

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.