DraftKings (NASDAQ:DKNG) Now Covered by Wolfe Research

Wolfe Research assumed coverage on shares of DraftKings (NASDAQ:DKNG) in a research note issued to investors on Wednesday, MarketBeat.com reports. The firm issued an outperform rating and a $40.00 target price on the stock.

Other equities analysts have also recently issued reports about the stock. JPMorgan Chase & Co. cut their target price on shares of DraftKings from $34.00 to $33.00 and set an “overweight” rating for the company in a research note on Monday, August 10th. Morgan Stanley dropped their price objective on shares of DraftKings from $39.00 to $36.00 and set an “overweight” rating for the company in a report on Thursday, July 23rd. Citizens Jmp raised their price objective on DraftKings from $34.00 to $36.00 and gave the company a “market outperform” rating in a research report on Thursday, June 25th. Stifel Nicolaus cut their price objective on DraftKings from $40.00 to $38.00 and set a “buy” rating for the company in a research report on Wednesday, July 22nd. Finally, Guggenheim reduced their target price on DraftKings from $35.00 to $33.00 and set a “buy” rating on the stock in a report on Monday, August 10th. One investment analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating, eight have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $34.29.

DraftKings Stock Up 3.3%

NASDAQ DKNG opened at $24.21 on Wednesday. DraftKings has a 12 month low of $20.46 and a 12 month high of $48.78. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 3.22. The stock has a market cap of $12.02 billion, a PE ratio of -63.71, a P/E/G ratio of 1.83 and a beta of 1.63. The stock’s 50 day moving average is $24.80 and its 200 day moving average is $24.47.

DraftKings (NASDAQ:DKNG) last announced its quarterly earnings data on Friday, August 7th. The company reported $0.09 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.02 by $0.07. DraftKings had a negative net margin of 2.68% and a negative return on equity of 11.26%. The business had revenue of $1.44 billion during the quarter, compared to analyst estimates of $1.51 billion. During the same period last year, the firm posted $0.30 EPS. The company’s revenue was down 4.6% on a year-over-year basis. Research analysts predict that DraftKings will post 0.51 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider R Stanton Dodge sold 62,500 shares of the company’s stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $29.68, for a total transaction of $1,855,000.00. Following the sale, the insider owned 556,258 shares of the company’s stock, valued at $16,509,737.44. This represents a 10.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Jocelyn Moore sold 10,759 shares of the stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $24.05, for a total transaction of $258,753.95. Following the transaction, the director owned 1,881 shares of the company’s stock, valued at $45,238.05. This trade represents a 85.12% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 47.18% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Janus Henderson Group PLC increased its stake in DraftKings by 9.3% during the first quarter. Janus Henderson Group PLC now owns 27,665,699 shares of the company’s stock worth $588,288,000 after acquiring an additional 2,351,790 shares during the last quarter. Viking Global Investors LP raised its position in DraftKings by 27.4% during the fourth quarter. Viking Global Investors LP now owns 19,119,912 shares of the company’s stock valued at $658,872,000 after purchasing an additional 4,116,561 shares during the period. Capital World Investors raised its position in DraftKings by 181.4% during the fourth quarter. Capital World Investors now owns 18,626,429 shares of the company’s stock valued at $641,867,000 after purchasing an additional 12,008,357 shares during the period. AQR Capital Management LLC lifted its stake in shares of DraftKings by 41.0% in the 4th quarter. AQR Capital Management LLC now owns 16,474,009 shares of the company’s stock valued at $567,694,000 after purchasing an additional 4,788,337 shares during the last quarter. Finally, California State Teachers Retirement System lifted its stake in shares of DraftKings by 1,727.3% in the 2nd quarter. California State Teachers Retirement System now owns 12,924,304 shares of the company’s stock valued at $326,468,000 after purchasing an additional 12,217,029 shares during the last quarter. Institutional investors 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.