DraftKings (NASDAQ:DKNG) Stock Price Up 7.8% After Analyst Upgrade

DraftKings Inc. (NASDAQ:DKNG)’s share price traded up 7.8% during trading on Monday after Bank of America upgraded the stock from a neutral rating to a buy rating. Bank of America now has a $27.00 price target on the stock. DraftKings traded as high as $19.97 and last traded at $20.0360. Approximately 8,160,642 shares changed hands during trading, a decline of 40% from the average daily volume of 13,531,683 shares. The stock had previously closed at $18.59.

DKNG has been the topic of several other reports. Moffett Nathanson dropped their price objective on shares of DraftKings from $27.00 to $25.00 in a research note on Wednesday, July 15th. Wolfe Research assumed 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. Citizens Jmp dropped their price target on shares of DraftKings from $37.00 to $35.00 and set a “market outperform” rating on the stock in a research note on Thursday, September 24th. Truist Financial set a $29.00 price target on shares of DraftKings in a report on Monday, August 10th. Finally, TD Cowen raised their price objective on shares of DraftKings from $30.00 to $35.00 and gave the company a “buy” rating in a research report on Friday, July 10th. One investment analyst has rated the stock with a Strong Buy rating, thirty-one have given a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, DraftKings presently has a consensus rating of “Moderate Buy” and a consensus price target of $34.04.

Insider Activity at DraftKings

In other news, Director Jocelyn Moore sold 10,759 shares of the company’s stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $24.05, for a total transaction of $258,753.95. Following the transaction, the director directly owned 1,881 shares of the company’s stock, valued at $45,238.05. This represents a 85.12% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 47.18% of the company’s stock.

Trending Headlines about DraftKings

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: Prediction-market opportunity: BofA said DraftKings’ prediction-market business could become a “win-win,” with the company now viewed as the third-largest participant. The analyst also said earlier concerns that prediction markets would cannibalize DraftKings’ core online sportsbook business have eased. DraftKings upgraded to Buy by BofA on prediction market opportunity
• Positive Sentiment: Valuation-driven rebound thesis: Bank of America’s $27 target implies substantial upside from recent trading levels, giving investors a bullish reason to view the extended selloff as a potential entry point. DraftKings Stock Jumps After Bank of America Says It Is Time to Buy the Stock
• Neutral Sentiment: Demographic support: Surveys indicating strong sports-betting adoption among Gen Z investors point to potentially favorable long-term engagement trends, although the data does not represent an immediate earnings change. DraftKings Stock Gains Momentum as Majority of Gen Z Investors Embrace Sports Betting
• Negative Sentiment: Competitive pressure remains: Fanatics is reportedly prepared to spend as much as $1 billion advertising its sportsbook, intensifying competition for customers and marketing share against DraftKings and Flutter Entertainment. Why Fanatics CEO Michael Rubin Is Doubling Down on Sports Betting

Institutional Trading of DraftKings

A number of institutional investors have recently added to or reduced their stakes in the stock. Ascentis Independent Advisors purchased a new position in DraftKings in the first quarter valued at about $27,000. Basecamp Wealth Advisors LLC raised its holdings in DraftKings by 3,547.1% during the first quarter. Basecamp Wealth Advisors LLC now owns 1,240 shares of the company’s stock worth $27,000 after purchasing an additional 1,206 shares during the last quarter. CoreCap Advisors LLC boosted its position in DraftKings by 336.5% during the second quarter. CoreCap Advisors LLC now owns 1,148 shares of the company’s stock worth $29,000 after purchasing an additional 885 shares in the last quarter. SHP Wealth Management purchased a new stake in DraftKings during the fourth quarter worth $42,000. Finally, Root Financial Partners LLC grew its holdings in DraftKings by 208.0% in the first quarter. Root Financial Partners LLC now owns 2,775 shares of the company’s stock valued at $60,000 after purchasing an additional 1,874 shares during the last quarter. Hedge funds and other institutional investors own 37.70% of the company’s stock.

DraftKings Trading Up 5.4%

The firm has a market cap of $9.73 billion, a PE ratio of -51.58, a PEG ratio of 1.87 and a beta of 1.61. The business has a 50-day moving average price of $23.48 and a two-hundred day moving average price of $24.20. The company has a debt-to-equity ratio of 3.22, a current ratio of 1.02 and a quick ratio of 1.02.

DraftKings (NASDAQ:DKNG) last released its quarterly earnings results on Friday, August 7th. The company reported $0.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.02 by $0.07. The business had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.51 billion. DraftKings had a negative return on equity of 11.26% and a negative net margin of 2.68%.The business’s revenue was down 4.6% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.30 EPS. Analysts forecast that DraftKings Inc. will post 0.4 EPS for the current year.

About DraftKings

DraftKings Inc is a digital sports entertainment and gaming company that provides online sports betting, daily fantasy sports and internet-based casino gaming. Its products are delivered through mobile applications and websites, allowing customers to wager on professional and collegiate sports, participate in fantasy contests and play a range of casino games where permitted by law.

The company also offers sports and betting-related content through DraftKings Network and operates additional gaming and entertainment products, including online lottery services in select markets.