DraftKings (NASDAQ:DKNG) Stock Bumped Down to Strong Sell by Wall Street Zen

Wall Street Zen downgraded shares of DraftKings (NASDAQ:DKNG) from a sell rating to a strong sell rating in a research report report published on Saturday morning,Wall Street Zen reports.

Several other equities research analysts have also recently issued reports on the stock. TD Cowen cut their price objective on shares of DraftKings from $35.00 to $25.00 and set a “buy” rating for the company in a research report on Monday, November 9th. Truist Financial decreased their target price on shares of DraftKings from $26.00 to $22.00 and set a “buy” rating on the stock in a report on Monday, November 9th. Wolfe Research began coverage on shares of DraftKings in a report on Wednesday, September 2nd. They issued an “outperform” rating and a $40.00 target price on the stock. Stifel Nicolaus lowered shares of DraftKings from a “buy” rating to a “hold” rating and reduced their price target for the company from $32.00 to $21.00 in a research report on Monday, November 9th. Finally, Citigroup decreased their price target on DraftKings from $28.00 to $22.00 and set a “buy” rating on the stock in a research note on Tuesday, November 10th. One analyst has rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating, eleven have given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, DraftKings currently has a consensus rating of “Moderate Buy” and a consensus price target of $27.61.

DraftKings Price Performance

NASDAQ DKNG traded down $0.23 on Friday, hitting $18.89. The company had a trading volume of 12,121,178 shares, compared to its average volume of 17,835,516. The company has a market capitalization of $9.41 billion, a PE ratio of -23.61, a PEG ratio of 2.51 and a beta of 1.65. DraftKings has a 12-month low of $16.55 and a 12-month high of $36.98. The company’s fifty day moving average price is $20.99 and its 200-day moving average price is $23.77. The company has a debt-to-equity ratio of 12.21, a current ratio of 0.99 and a quick ratio of 1.02.

DraftKings (NASDAQ:DKNG) last announced its quarterly earnings data on Thursday, November 5th. The company reported ($0.53) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.41) by ($0.12). The business had revenue of $1.33 billion for the quarter, compared to analysts’ expectations of $1.39 billion. DraftKings had a negative net margin of 5.91% and a negative return on equity of 43.92%. The firm’s revenue was up 16.2% on a year-over-year basis. During the same period in the prior year, the company posted ($0.26) EPS. As a group, analysts predict that DraftKings will post 0.31 earnings per share for the current year.

Insider Activity at DraftKings

In other DraftKings news, Director Jocelyn Moore sold 10,759 shares of the business’s stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $24.05, for a total value of $258,753.95. Following the completion of the transaction, the director owned 1,881 shares in the company, valued at $45,238.05. The trade was a 85.12% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Gregory Wendt bought 5,000 shares of the stock in a transaction that occurred on Wednesday, November 11th. The shares were bought 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 directly owned 22,920 shares in the company, valued at $452,899.20. This represents a 27.90% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Company insiders own 47.18% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Spruce House Investment Management LLC lifted its holdings 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 valued at $208,633,000 after acquiring an additional 5,446,166 shares in the last quarter. Janus Henderson Group PLC boosted its position in DraftKings by 9.3% during the 1st quarter. Janus Henderson Group PLC now owns 27,665,699 shares of the company’s stock worth $588,288,000 after purchasing an additional 2,351,790 shares during the period. Bank of New York Mellon Corp acquired a new stake in DraftKings in the 2nd quarter valued at $24,014,000. Renaissance Technologies LLC acquired a new stake in DraftKings in the 1st quarter valued at $17,660,000. Finally, Quantinno Capital Management LP raised its position in DraftKings by 273.9% in the first quarter. Quantinno Capital Management LP now owns 898,241 shares of the company’s stock valued at $19,420,000 after purchasing an additional 658,006 shares during the period. Institutional investors and hedge funds own 37.70% of the company’s stock.

DraftKings News Roundup

Investors following DKNG have been watching these news items:

• Positive Sentiment: Director Gregory Wendt bought 5,000 shares for about $98,800, increasing his personal stake by nearly 28%. The purchase may signal confidence from an insider, though it does not resolve the company’s business risks. Director share purchase
• Positive Sentiment: DraftKings is targeting $650 million to $750 million in Predictions revenue in 2027, citing customer engagement and retention. Reports that the exchange’s margins are approaching sportsbook levels offer a potential payoff if the projections are achieved. Predictions revenue outlook
• Neutral Sentiment: Zacks Research raised its rating from “strong sell” to “hold,” a less negative view but not a buy recommendation. Zacks rating change

DraftKings Company Profile

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.