Benchmark Reaffirms “Buy” Rating for DraftKings (NASDAQ:DKNG)

Benchmark reaffirmed their buy rating on shares of DraftKings (NASDAQ:DKNG) in a research note published on Wednesday, Benzinga reports. They currently have a $50.00 price target on the stock.

Several other analysts have also recently issued reports on DKNG. Oppenheimer upped their price target on shares of DraftKings from $55.00 to $60.00 and gave the company an outperform rating in a report on Tuesday, February 20th. Morgan Stanley increased their target price on shares of DraftKings from $49.00 to $50.00 and gave the stock an overweight rating in a report on Tuesday, April 9th. Piper Sandler increased their target price on shares of DraftKings from $40.00 to $50.00 and gave the stock an overweight rating in a report on Tuesday, February 13th. The Goldman Sachs Group assumed coverage on shares of DraftKings in a report on Tuesday, April 16th. They set a buy rating and a $60.00 target price on the stock. Finally, Truist Financial reissued a buy rating and set a $55.00 target price (up from $45.00) on shares of DraftKings in a report on Tuesday, February 20th. Two analysts have rated the stock with a sell rating, one has assigned a hold rating and twenty-five have issued a buy rating to the company. Based on data from MarketBeat, the stock has an average rating of Moderate Buy and an average price target of $47.31.

DraftKings Price Performance

DKNG opened at $43.13 on Wednesday. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 1.49. DraftKings has a 52-week low of $20.26 and a 52-week high of $49.57. The company has a 50 day moving average of $43.54 and a two-hundred day moving average of $38.35. The company has a market cap of $37.38 billion, a P/E ratio of -24.65 and a beta of 1.86.

DraftKings (NASDAQ:DKNG) last posted its earnings results on Friday, February 16th. The company reported ($0.10) EPS for the quarter, missing analysts’ consensus estimates of $0.06 by ($0.16). DraftKings had a negative return on equity of 87.24% and a negative net margin of 21.88%. The firm had revenue of $1.23 billion for the quarter, compared to analyst estimates of $1.24 billion. During the same period in the previous year, the firm posted ($0.53) earnings per share. The company’s revenue for the quarter was up 43.9% on a year-over-year basis. On average, analysts expect that DraftKings will post -0.24 earnings per share for the current year.

Insider Buying and Selling at DraftKings

In other DraftKings news, insider R Stanton Dodge sold 686,101 shares of the firm’s stock in a transaction dated Thursday, February 8th. The shares were sold at an average price of $43.06, for a total transaction of $29,543,509.06. Following the transaction, the insider now owns 200,239 shares of the company’s stock, valued at approximately $8,622,291.34. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. In other news, insider R Stanton Dodge sold 686,101 shares of DraftKings stock in a transaction that occurred on Thursday, February 8th. The shares were sold at an average price of $43.06, for a total value of $29,543,509.06. Following the transaction, the insider now owns 200,239 shares of the company’s stock, valued at approximately $8,622,291.34. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Paul Liberman sold 510,000 shares of DraftKings stock in a transaction that occurred on Monday, January 29th. The stock was sold at an average price of $40.00, for a total transaction of $20,400,000.00. Following the completion of the transaction, the insider now directly owns 2,291,406 shares in the company, valued at approximately $91,656,240. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 1,596,101 shares of company stock valued at $66,303,509. Company insiders own 51.19% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. boosted its holdings in shares of DraftKings by 6.0% in the fourth quarter. Vanguard Group Inc. now owns 39,263,918 shares of the company’s stock worth $1,384,053,000 after buying an additional 2,225,759 shares during the period. Jericho Capital Asset Management L.P. boosted its holdings in shares of DraftKings by 39.4% in the third quarter. Jericho Capital Asset Management L.P. now owns 7,153,967 shares of the company’s stock worth $210,613,000 after buying an additional 2,022,000 shares during the period. Norges Bank acquired a new position in shares of DraftKings in the fourth quarter worth about $192,140,000. Ameriprise Financial Inc. boosted its holdings in shares of DraftKings by 345.7% in the third quarter. Ameriprise Financial Inc. now owns 4,440,494 shares of the company’s stock worth $130,742,000 after buying an additional 3,444,107 shares during the period. Finally, Massachusetts Financial Services Co. MA boosted its holdings in shares of DraftKings by 21.4% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 4,424,931 shares of the company’s stock worth $155,979,000 after buying an additional 781,058 shares during the period. 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.