DraftKings (NASDAQ:DKNG) Trading Up 6.3% – What’s Next?

DraftKings Inc. (NASDAQ:DKNG) shares shot up 6.3% during mid-day trading on Tuesday . The company traded as high as $23.35 and last traded at $23.3480. 2,555,564 shares traded hands during mid-day trading, a decline of 81% from the average session volume of 13,259,170 shares. The stock had previously closed at $21.97.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the company. Morgan Stanley reduced their target price on DraftKings from $39.00 to $36.00 and set an “overweight” rating for the company in a research note on Thursday, July 23rd. New Street Research set a $29.00 price target on DraftKings in a research note on Monday, June 1st. Stifel Nicolaus cut their price target on DraftKings from $40.00 to $38.00 and set a “buy” rating for the company in a report on Wednesday, July 22nd. Wall Street Zen cut shares of DraftKings from a “hold” rating to a “sell” rating in a research report on Saturday, August 15th. Finally, Wolfe Research assumed coverage on shares of DraftKings in a report on Wednesday, September 2nd. They issued an “outperform” rating and a $40.00 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating, eight have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $34.36.

DraftKings Stock Up 0.5%

The company has a market cap of $10.96 billion, a P/E ratio of -57.89, a PEG ratio of 1.78 and a beta of 1.63. The stock has a 50-day moving average of $24.23 and a 200 day moving average of $24.55. 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 announced its quarterly earnings data on Friday, August 7th. The company reported $0.09 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.02 by $0.07. DraftKings had a negative net margin of 2.68% and a negative return on equity of 11.26%. The firm had revenue of $1.44 billion for the quarter, compared to the consensus estimate of $1.51 billion. During the same period in the prior year, the company posted $0.30 earnings per share. The business’s revenue for the quarter was down 4.6% on a year-over-year basis. Research analysts anticipate that DraftKings Inc. will post 0.49 earnings per share for the current year.

Insider Activity

In related news, Director Jocelyn Moore sold 10,759 shares of DraftKings stock in a transaction that occurred 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 transaction, the director directly owned 1,881 shares of the company’s stock, valued at $45,238.05. This trade represents a 85.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 47.18% of the company’s stock.

Hedge Funds Weigh In On DraftKings

Several hedge funds and other institutional investors have recently modified their holdings of the business. CoreCap Advisors LLC raised its holdings in shares of DraftKings by 336.5% during the 2nd quarter. CoreCap Advisors LLC now owns 1,148 shares of the company’s stock worth $29,000 after buying an additional 885 shares in the last quarter. SHP Wealth Management acquired a new stake in DraftKings in the fourth quarter valued at about $42,000. Basecamp Wealth Advisors LLC grew its position in DraftKings by 3,547.1% in the first quarter. Basecamp Wealth Advisors LLC now owns 1,240 shares of the company’s stock valued at $27,000 after acquiring an additional 1,206 shares during the last quarter. Ascentis Independent Advisors acquired a new position in DraftKings during the first quarter worth about $27,000. Finally, Strategic Investment Solutions Inc. IL bought a new position in shares of DraftKings in the fourth quarter worth about $69,000. Institutional investors own 37.70% of the company’s stock.

DraftKings Company Profile

DraftKings Inc is a digital sports entertainment and gaming company that operates online sports betting, iGaming and daily fantasy sports platforms. Its products enable customers to place bets on professional and collegiate sports, play online casino games where permitted, and participate in fantasy contests across a range of sports.

The company also offers related services, including retail sportsbooks in select jurisdictions and sports media content through DraftKings Network. Its offerings are available in U.S.