Key Points
- DraftKings director Gregory Wendt bought 5,000 shares for $98,800 at an average price of $19.76, increasing his stake by 27.9% to 22,920 shares.
- Latest quarterly results fell short of analyst expectations: DraftKings reported a $0.53-per-share loss and $1.33 billion in revenue, though revenue rose 16.2% year over year.
- Several analysts cut their price targets, and UBS downgraded the stock to neutral. Despite the pullbacks, the consensus rating remains “Moderate Buy,” with an average target of $27.61.
DraftKings Inc. (NASDAQ:DKNG - Get Free Report) Director Gregory Wendt acquired 5,000 shares of DraftKings stock in a transaction that occurred on Wednesday, November 11th. The stock was purchased at an average cost of $19.76 per share, with a total value of $98,800.00. Following the completion of the purchase, the director owned 22,920 shares in the company, valued at $452,899.20. The trade was a 27.90% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink.
DraftKings Price Performance
NASDAQ:DKNG opened at $19.12 on Friday. The company has a debt-to-equity ratio of 12.21, a current ratio of 0.99 and a quick ratio of 1.02. The company's 50-day moving average price is $21.10 and its 200-day moving average price is $23.82. DraftKings Inc. has a twelve month low of $16.55 and a twelve month high of $36.98.
DraftKings (NASDAQ:DKNG - Get Free Report) last issued its earnings results on Thursday, November 5th. The company reported ($0.53) earnings per share for the quarter, missing the consensus estimate of ($0.41) by ($0.12). DraftKings had a negative return on equity of 43.92% and a negative net margin of 5.91%. The company had revenue of $1.33 billion for the quarter, compared to analyst estimates of $1.39 billion. During the same quarter in the prior year, the firm earned ($0.26) earnings per share. The company's revenue for the quarter was up 16.2% on a year-over-year basis. On average, research analysts expect that DraftKings Inc. will post 0.31 earnings per share for the current year.
Analyst Upgrades and Downgrades
DKNG has been the subject of several recent analyst reports. Needham & Company LLC cut their target price on DraftKings from $30.00 to $25.00 and set a "buy" rating for the company in a research note on Monday. Susquehanna reaffirmed a "positive" rating and issued a $23.00 price target on shares of DraftKings in a research note on Monday. TD Cowen lowered their price target on DraftKings from $35.00 to $25.00 and set a "buy" rating for the company in a report on Monday. Canaccord Genuity Group lowered their price target on DraftKings from $40.00 to $30.00 and set a "buy" rating for the company in a report on Monday. Finally, UBS Group downgraded DraftKings from a "buy" rating to a "neutral" rating and cut their price objective for the stock from $48.00 to $22.00 in a research report on Monday. One research analyst has rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating, ten have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $27.61.
Check Out Our Latest Analysis on DKNG
Trending Headlines about DraftKings
Here are a few of the latest headlines about DKNG:
- Positive Sentiment: DraftKings is targeting roughly $650 million to $750 million in Predictions revenue in 2027, citing customer engagement and retention. A report also says the exchange’s revenue margins are approaching sportsbook levels, which could strengthen the business case if the projections are achieved. Predictions revenue target
- Negative Sentiment: Wells Fargo downgraded DraftKings, and several other firms reportedly cut ratings or price targets. The repeated analyst caution adds pressure to expectations for the shares. Wells Fargo downgrade
- Negative Sentiment: Commentary highlighted the competitive threat from prediction markets and questioned their economics, while concerns about DraftKings’ investment costs and outlook add to uncertainty around whether the new business can deliver profitable growth. Prediction-market competition
Hedge Funds Weigh In On DraftKings
Large investors have recently made changes to their positions in the stock. CoreCap Advisors LLC boosted its position in shares of DraftKings by 336.5% during the 2nd quarter. CoreCap Advisors LLC now owns 1,148 shares of the company's stock worth $29,000 after purchasing an additional 885 shares during the period. Basecamp Wealth Advisors LLC increased its holdings in DraftKings by 3,547.1% in the 1st quarter. Basecamp Wealth Advisors LLC now owns 1,240 shares of the company's stock valued at $27,000 after purchasing an additional 1,206 shares during the last quarter. Ascentis Independent Advisors acquired a new stake in DraftKings in the 1st quarter valued at approximately $27,000. Heritage Family Offices LLP purchased a new stake in DraftKings in the third quarter valued at approximately $44,000. Finally, Mirae Asset Global Investments Co. Ltd. purchased a new stake in DraftKings in the third quarter valued at approximately $48,000. 37.70% of the stock is currently owned by institutional investors and hedge funds.
About DraftKings
(
Get Free Report)
DraftKings Inc. is a digital sports and entertainment company founded in 2012. It began as a daily fantasy sports platform and has since expanded into online sports betting and gaming. The company offers daily fantasy contests, a sportsbook and online casino products, including games such as slots and table games. Its services are available in a range of U.S. jurisdictions and in Ontario, Canada, where permitted by local regulations. DraftKings is headquartered in Boston, Massachusetts. Co-founder Jason Robins serves as the company's chief executive officer.
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