DraftKings (NASDAQ:DKNG) Shares Down 4.7% – Should You Sell?

DraftKings Inc. (NASDAQ:DKNG) traded down 4.7% on Tuesday . The stock traded as low as $23.79 and last traded at $23.95. 1,410,427 shares were traded during trading, a decline of 90% from the average session volume of 14,100,789 shares. The stock had previously closed at $25.12.

Wall Street Analyst Weigh In

DKNG has been the topic of several recent analyst reports. Benchmark reiterated a “buy” rating on shares of DraftKings in a research note on Tuesday, March 3rd. Canaccord Genuity Group lowered their target price on shares of DraftKings from $50.00 to $44.00 and set a “buy” rating for the company in a report on Friday, February 13th. Susquehanna dropped their target price on shares of DraftKings from $33.00 to $32.00 and set a “positive” rating on the stock in a research report on Tuesday, March 31st. Bank of America reduced their price target on shares of DraftKings from $37.50 to $30.00 and set a “neutral” rating for the company in a research report on Friday, February 13th. Finally, UBS Group restated a “buy” rating and issued a $43.00 price objective on shares of DraftKings in a research note on Wednesday, May 20th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $34.32.

DraftKings Stock Performance

The stock has a market cap of $12.00 billion, a price-to-earnings ratio of 403.00 and a beta of 1.67. The stock’s 50 day moving average is $23.67 and its two-hundred day moving average is $27.90. 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 posted its quarterly earnings data on Friday, May 8th. The company reported $0.20 EPS for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.02). DraftKings had a net margin of 0.93% and a return on equity of 13.51%. The business had revenue of $1.65 billion during the quarter, compared to analyst estimates of $1.63 billion. During the same quarter in the prior year, the firm posted ($0.07) earnings per share. The company’s revenue for the quarter was up 16.8% compared to the same quarter last year. Analysts anticipate that DraftKings Inc. will post 0.62 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Paul Liberman sold 484,417 shares of the stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $25.16, for a total transaction of $12,187,931.72. Following the completion of the sale, the insider directly owned 213,597 shares of the company’s stock, valued at $5,374,100.52. This trade represents a 69.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Woodrow Levin sold 34,234 shares of DraftKings stock in a transaction on Monday, May 18th. The shares were sold at an average price of $25.71, for a total transaction of $880,156.14. Following the completion of the transaction, the director owned 29,820 shares in the company, valued at approximately $766,672.20. This trade represents a 53.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 524,546 shares of company stock valued at $13,215,769 over the last 90 days. Insiders own 47.18% of the company’s stock.

Institutional Trading of DraftKings

Several hedge funds and other institutional investors have recently made changes to their positions in DKNG. Dagco Inc. acquired a new position in shares of DraftKings during the fourth quarter worth about $26,000. Ameriflex Group Inc. raised its stake in shares of DraftKings by 100.0% during the 3rd quarter. Ameriflex Group Inc. now owns 810 shares of the company’s stock worth $30,000 after buying an additional 405 shares in the last quarter. Root Financial Partners LLC acquired a new stake in shares of DraftKings in the 3rd quarter valued at approximately $33,000. Asset Dedication LLC purchased a new stake in shares of DraftKings in the third quarter valued at approximately $37,000. Finally, AlphaQuest LLC purchased a new stake in shares of DraftKings in the third quarter valued at approximately $41,000. Hedge funds and other institutional investors own 37.70% of the company’s stock.

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.