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

DraftKings Inc. (NASDAQ:DKNG) hit a new 52-week low during mid-day 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.

Several other research analysts have also commented on the company. Needham & Company LLC reiterated a “buy” rating and set a $52.00 price target on shares of DraftKings in a report on Wednesday, November 19th. Benchmark reaffirmed a “buy” rating on shares of DraftKings in a research report on Monday, January 12th. Guggenheim lowered their price target on DraftKings from $45.00 to $42.00 and set a “buy” rating for the company in a report on Thursday, January 29th. UBS Group reaffirmed a “buy” rating on shares of DraftKings in a research report on Wednesday, January 7th. Finally, Citigroup assumed coverage on DraftKings in a report on Friday, November 21st. They set a “buy” rating and a $48.00 target price on the stock. Twenty-four research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, DraftKings presently has a consensus rating of “Moderate Buy” and a consensus target price of $46.27.

Insider Buying and Selling

In other news, Director Gregory Westin Wendt bought 10,000 shares of DraftKings stock in a transaction that occurred on Tuesday, November 11th. The stock was purchased at an average cost of $30.27 per share, with a total value of $302,700.00. Following the completion of the transaction, the director directly owned 10,000 shares in the company, valued at $302,700. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Harry Sloan purchased 25,000 shares of the company’s stock in a transaction that occurred on Tuesday, November 11th. The shares were purchased 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 in the company, valued at $7,566,273.60. The trade was a 11.13% increase in their position. The SEC filing for this purchase provides additional information. Insiders have sold a total of 166,752 shares of company stock worth $5,252,044 in the last quarter. 51.19% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On DraftKings

Several hedge funds have recently modified their holdings of DKNG. Integrated Wealth Concepts LLC increased its holdings in shares of DraftKings by 5.9% in the first quarter. Integrated Wealth Concepts LLC now owns 9,460 shares of the company’s stock worth $314,000 after purchasing an additional 524 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of DraftKings by 1,141.0% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 44,044 shares of the company’s stock valued at $1,463,000 after buying an additional 40,495 shares during the last quarter. Empowered Funds LLC raised its position in DraftKings by 18.0% in the 1st quarter. Empowered Funds LLC now owns 9,115 shares of the company’s stock worth $303,000 after buying an additional 1,391 shares during the last quarter. Sivia Capital Partners LLC purchased a new stake in shares of DraftKings during the 2nd quarter valued at about $603,000. Finally, Robeco Institutional Asset Management B.V. grew its stake in shares of DraftKings by 59.3% in the second quarter. Robeco Institutional Asset Management B.V. now owns 21,995 shares of the company’s stock worth $943,000 after acquiring an additional 8,192 shares during the period. Institutional investors own 37.70% of the company’s stock.

DraftKings Stock Performance

The company has a debt-to-equity ratio of 2.51, a quick ratio of 1.09 and a current ratio of 1.10. The firm has a market cap of $13.17 billion, a P/E ratio of -46.39, a P/E/G ratio of 0.47 and a beta of 1.63. The business’s 50-day simple moving average is $33.55 and its 200 day simple moving average is $37.30.

DraftKings (NASDAQ:DKNG) last announced its earnings results on Friday, November 7th. The company reported ($0.26) EPS for the quarter, missing analysts’ consensus estimates of $0.01 by ($0.27). DraftKings had a negative return on equity of 22.84% and a negative net margin of 4.90%.The company had revenue of $1.14 billion during the quarter, compared to analysts’ expectations of $1.40 billion. During the same quarter last year, the firm posted ($0.60) EPS. DraftKings’s revenue for the quarter was up 4.4% compared to the same quarter last year. As a group, equities analysts predict that DraftKings Inc. will post 0.64 earnings per share 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.