DraftKings (NASDAQ:DKNG) Announces Quarterly Earnings Results, Misses Expectations By $0.02 EPS

DraftKings (NASDAQ:DKNG) released its earnings results on Thursday. The company reported ($0.30) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.28) by ($0.02), Briefing.com reports. The business had revenue of $1.18 billion during the quarter, compared to the consensus estimate of $1.12 billion. DraftKings had a negative net margin of 21.88% and a negative return on equity of 87.24%. The business’s revenue was up 52.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.87) EPS.

DraftKings Stock Down 2.8 %

Shares of NASDAQ DKNG traded down $1.21 during trading on Friday, hitting $41.82. 27,173,021 shares of the company traded hands, compared to its average volume of 11,728,833. The company has a debt-to-equity ratio of 1.49, a quick ratio of 1.34 and a current ratio of 1.34. The business’s fifty day moving average is $43.57 and its 200 day moving average is $38.70. The firm has a market capitalization of $36.24 billion, a price-to-earnings ratio of -23.79 and a beta of 1.87. DraftKings has a fifty-two week low of $21.07 and a fifty-two week high of $49.57.

Insider Buying and Selling at DraftKings

In related news, insider Jason Robins sold 200,000 shares of the stock in a transaction on Wednesday, February 21st. The stock was sold at an average price of $40.89, for a total value of $8,178,000.00. Following the transaction, the insider now directly owns 3,195,812 shares in the company, valued at approximately $130,676,752.68. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. In other DraftKings news, insider R Stanton Dodge sold 686,101 shares of the company’s stock in a transaction dated Thursday, February 8th. The shares were sold at an average price of $43.06, for a total value of $29,543,509.06. Following the completion of the sale, the insider now directly owns 200,239 shares of the company’s stock, valued at approximately $8,622,291.34. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Jason Robins sold 200,000 shares of the stock in a transaction that occurred on Wednesday, February 21st. The shares were sold at an average price of $40.89, for a total value of $8,178,000.00. Following the sale, the insider now directly owns 3,195,812 shares of the company’s stock, valued at $130,676,752.68. The disclosure for this sale can be found here. Over the last quarter, insiders sold 1,086,101 shares of company stock valued at $45,903,509. Company insiders own 51.19% of the company’s stock.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on DKNG. UBS Group increased their price objective on shares of DraftKings from $44.00 to $56.00 and gave the company a “buy” rating in a research note on Tuesday, March 5th. Mizuho initiated coverage on DraftKings in a report on Tuesday, March 26th. They set a “buy” rating and a $58.00 price objective on the stock. Bank Of America (Bofa) upped their target price on DraftKings from $45.00 to $50.00 in a report on Thursday, February 15th. JPMorgan Chase & Co. reiterated an “overweight” rating and issued a $55.00 target price on shares of DraftKings in a research report on Thursday, March 28th. Finally, JMP Securities restated a “market outperform” rating and set a $52.00 price target on shares of DraftKings in a report on Monday, March 25th. Two investment analysts have rated the stock with a sell rating, one has issued a hold rating and twenty-five have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, DraftKings presently has a consensus rating of “Moderate Buy” and a consensus target price of $47.45.

DraftKings Company Profile

DraftKings Inc operates as a digital sports entertainment and gaming company in the United States and internationally. It provides online sports betting and casino, daily fantasy sports, media, and other consumer products, as well as retails sportsbooks. The company also engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators.