DraftKings (NASDAQ:DKNG) Price Target Cut to $29.00 by Analysts at Wells Fargo & Company

DraftKings (NASDAQ:DKNG) had its target price cut by research analysts at Wells Fargo & Company from $32.00 to $29.00 in a research note issued to investors on Monday,Benzinga reports. The firm presently has an “overweight” rating on the stock. Wells Fargo & Company‘s price objective would indicate a potential upside of 16.28% from the stock’s previous close.

Several other brokerages also recently commented on DKNG. BTIG Research lifted their target price on DraftKings from $28.00 to $30.00 and gave the stock a “buy” rating in a report on Friday, May 8th. Morgan Stanley reissued an “overweight” rating on shares of DraftKings in a research note on Thursday, May 21st. Roth Capital upgraded DraftKings from a “sell” rating to a “buy” rating in a research report on Friday, April 24th. Truist Financial cut their price objective on DraftKings from $33.00 to $30.00 and set a “buy” rating on the stock in a research note on Tuesday, April 21st. Finally, Susquehanna reduced their target price on DraftKings from $32.00 to $31.00 and set a “positive” rating on the stock in a report on Wednesday, July 1st. One analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, eight have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, DraftKings currently has an average rating of “Moderate Buy” and an average price target of $34.46.

DraftKings Price Performance

DraftKings stock opened at $24.94 on Monday. The stock has a 50-day moving average price of $25.81 and a two-hundred day moving average price of $26.09. DraftKings has a 12 month low of $20.46 and a 12 month high of $48.78. The company has a market capitalization of $12.37 billion, a PE ratio of 415.67 and a beta of 1.65. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 3.03.

DraftKings (NASDAQ:DKNG) last issued its quarterly earnings data on Friday, May 8th. The company reported $0.20 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.02). The business had revenue of $1.65 billion during the quarter, compared to the consensus estimate of $1.63 billion. DraftKings had a net margin of 0.93% and a return on equity of 13.51%. The firm’s quarterly revenue was up 16.8% compared to the same quarter last year. During the same quarter last year, the business earned ($0.07) EPS. Analysts expect that DraftKings will post 0.54 EPS for the current year.

Insider Activity

In related news, Director Woodrow Levin sold 34,234 shares of the business’s stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $25.71, for a total value of $880,156.14. Following the completion of the sale, the director directly owned 29,820 shares of the company’s stock, valued at $766,672.20. The trade was a 53.45% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider R Stanton Dodge sold 62,500 shares of the stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $29.68, for a total value of $1,855,000.00. Following the completion of the transaction, the insider owned 556,258 shares in the company, valued at approximately $16,509,737.44. The trade was a 10.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 97,596 shares of company stock worth $2,756,991 in the last quarter. Company insiders own 47.18% of the company’s stock.

Hedge Funds Weigh In On DraftKings

A number of large investors have recently modified their holdings of DKNG. Vanguard Group Inc. grew its position in DraftKings by 3.1% in the 4th quarter. Vanguard Group Inc. now owns 44,758,204 shares of the company’s stock worth $1,542,368,000 after purchasing an additional 1,354,457 shares in the last quarter. Waycross Partners LLC bought a new position in shares of DraftKings in the fourth quarter valued at approximately $2,584,000. DAVENPORT & Co LLC lifted its holdings in DraftKings by 11.2% during the fourth quarter. DAVENPORT & Co LLC now owns 3,456,735 shares of the company’s stock worth $119,602,000 after acquiring an additional 348,333 shares during the period. Stableford Capital II LLC purchased a new position in DraftKings in the fourth quarter worth $2,476,000. Finally, Sumitomo Mitsui Trust Group Inc. grew its stake in DraftKings by 11.0% in the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 4,370,903 shares of the company’s stock valued at $150,621,000 after purchasing an additional 433,963 shares during the period. 37.70% of the stock is currently owned by institutional investors.

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.