DraftKings (NASDAQ:DKNG) Shares Down 4.7% – Here’s Why

Shares of DraftKings Inc. (NASDAQ:DKNG) fell 4.7% during mid-day trading on Tuesday . The stock traded as low as $23.79 and last traded at $23.95. 1,410,427 shares traded hands during mid-day trading, a decline of 90% from the average session volume of 14,100,789 shares. The stock had previously closed at $25.12.

Analyst Ratings Changes

A number of equities research analysts have issued reports on DKNG shares. Truist Financial decreased their price target on shares of DraftKings from $33.00 to $30.00 and set a “buy” rating for the company in a report on Tuesday, April 21st. Roth Mkm raised DraftKings from a “sell” rating to a “buy” rating in a research report on Friday, April 24th. BNP Paribas Exane began coverage on DraftKings in a research note on Thursday, May 14th. They set an “underperform” rating and a $20.00 target price for the company. Zacks Research raised DraftKings from a “strong sell” rating to a “hold” rating in a report on Wednesday, May 20th. Finally, Northland Securities set a $27.00 price target on DraftKings in a research report on Monday, May 11th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $34.32.

DraftKings Stock Performance

The firm’s fifty day moving average price is $23.64 and its 200-day moving average price is $27.85. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 3.03. The company has a market cap of $12.17 billion, a P/E ratio of 408.83 and a beta of 1.67.

DraftKings (NASDAQ:DKNG) last posted its quarterly earnings data on Friday, May 8th. The company reported $0.20 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.22 by ($0.02). DraftKings had a return on equity of 13.51% and a net margin of 0.93%.The company had revenue of $1.65 billion for the quarter, compared to the consensus estimate of $1.63 billion. During the same quarter in the previous year, the firm posted ($0.07) EPS. The business’s revenue for the quarter was up 16.8% compared to the same quarter last year. As a group, research analysts forecast that DraftKings Inc. will post 0.62 EPS for the current fiscal year.

Insider Activity at DraftKings

In related news, Director Jocelyn Moore sold 2,150 shares of the company’s stock in a transaction dated Friday, March 13th. The shares were sold at an average price of $25.60, for a total value of $55,040.00. Following the sale, the director owned 1,406 shares of the company’s stock, valued at $35,993.60. The trade was a 60.46% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CAO Erik Bradbury sold 2,883 shares of the company’s stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $24.56, for a total transaction of $70,806.48. Following the completion of the sale, the chief accounting officer directly owned 38,168 shares in the company, valued at approximately $937,406.08. The trade was a 7.02% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 524,546 shares of company stock worth $13,215,769. 47.18% of the stock is owned by company insiders.

Institutional Trading of DraftKings

A number of institutional investors and hedge funds have recently added to or reduced their stakes in DKNG. Dagco Inc. bought a new stake in DraftKings in the fourth quarter valued at about $26,000. Ascentis Independent Advisors bought a new stake in DraftKings during the first quarter worth about $27,000. Ameriflex Group Inc. increased its holdings in shares of DraftKings by 100.0% during the third quarter. Ameriflex Group Inc. now owns 810 shares of the company’s stock worth $30,000 after buying an additional 405 shares in the last quarter. Asset Dedication LLC bought a new position in shares of DraftKings in the third quarter valued at approximately $37,000. Finally, Montag A & Associates Inc. raised its stake 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 during the last quarter. Institutional investors own 37.70% of the company’s stock.

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.