DraftKings (NASDAQ:DKNG) Upgraded to Strong-Buy at Freedom Capital

Freedom Capital upgraded shares of DraftKings (NASDAQ:DKNG) to a strong-buy rating in a research report report published on Wednesday morning,Zacks.com reports.

Other equities analysts have also recently issued reports about the stock. Argus cut shares of DraftKings from a “buy” rating to a “hold” rating in a research report on Tuesday, March 17th. JPMorgan Chase & Co. reduced their price target on shares of DraftKings from $32.00 to $31.00 and set an “overweight” rating on the stock in a research report on Thursday, April 16th. Needham & Company LLC reissued a “buy” rating and set a $35.00 price target on shares of DraftKings in a research report on Monday, May 11th. Truist Financial reduced their price target on shares of DraftKings from $33.00 to $30.00 and set a “buy” rating on the stock in a research report on Tuesday, April 21st. Finally, The Goldman Sachs Group reduced their price target on shares of DraftKings from $54.00 to $31.00 and set a “buy” rating on the stock in a research report on Tuesday, February 17th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, DraftKings currently has an average rating of “Moderate Buy” and an average target price of $34.32.

DraftKings Price Performance

DKNG opened at $25.40 on Wednesday. The company has a fifty day moving average price of $23.69 and a two-hundred day moving average price of $27.96. The company has a debt-to-equity ratio of 3.03, a quick ratio of 1.02 and a current ratio of 1.02. DraftKings has a 52 week low of $20.46 and a 52 week high of $48.78. The firm has a market capitalization of $12.60 billion, a PE ratio of 423.33 and a beta of 1.67.

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

Insider Buying and Selling at DraftKings

In other news, CAO Erik Bradbury sold 2,883 shares of the business’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 transaction, the chief accounting officer directly owned 38,168 shares in the company, valued at $937,406.08. The trade was a 7.02% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Jocelyn Moore sold 2,150 shares of the business’s stock in a transaction dated Friday, March 13th. The stock was sold at an average price of $25.60, for a total transaction of $55,040.00. Following the transaction, the director owned 1,406 shares in the company, valued at $35,993.60. This represents a 60.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 523,684 shares of company stock valued at $13,193,934 over the last quarter. 47.18% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of DKNG. Viking Global Investors LP acquired a new position in shares of DraftKings during the 3rd quarter worth about $561,125,000. Capital World Investors increased its stake in shares of DraftKings by 181.4% during the 4th quarter. Capital World Investors now owns 18,626,429 shares of the company’s stock worth $641,867,000 after purchasing an additional 12,008,357 shares during the last quarter. Janus Henderson Group PLC increased its stake in shares of DraftKings by 50.8% during the 4th quarter. Janus Henderson Group PLC now owns 25,313,909 shares of the company’s stock worth $858,893,000 after purchasing an additional 8,524,923 shares during the last quarter. Norges Bank acquired a new position in shares of DraftKings during the 4th quarter worth about $284,466,000. Finally, Spruce House Investment Management LLC increased its stake in shares of DraftKings by 129.6% during the 1st quarter. Spruce House Investment Management LLC now owns 9,650,000 shares of the company’s stock worth $208,633,000 after purchasing an additional 5,446,166 shares during the last quarter. 37.70% of the stock is currently owned by institutional investors and hedge funds.

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.