DraftKings (NASDAQ:DKNG) Upgraded by Northland Capmk to “Hold” Rating

DraftKings (NASDAQ:DKNG) was upgraded by equities researchers at Northland Capmk from a “strong sell” rating to a “hold” rating in a research report issued to clients and investors on Monday,Zacks.com reports.

DKNG has been the subject of a number of other reports. JPMorgan Chase & Co. lowered their price target on shares of DraftKings from $51.00 to $42.00 and set an “overweight” rating for the company in a research report on Monday. Benchmark dropped their price target on DraftKings from $43.00 to $37.00 and set a “buy” rating on the stock in a research report on Friday. Guggenheim reduced their price objective on DraftKings from $55.00 to $45.00 and set a “buy” rating for the company in a research report on Monday. Truist Financial dropped their target price on DraftKings from $50.00 to $45.00 and set a “buy” rating on the stock in a report on Monday. Finally, Barclays reduced their price target on DraftKings from $54.00 to $40.00 and set an “overweight” rating for the company in a report on Monday. Twenty-six research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $48.66.

DraftKings Stock Performance

DraftKings stock opened at $30.54 on Monday. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 1.82. The firm has a market cap of $15.16 billion, a P/E ratio of -53.58, a P/E/G ratio of 1.03 and a beta of 1.86. DraftKings has a 1-year low of $26.23 and a 1-year high of $53.61. The firm has a 50-day moving average of $37.53 and a 200-day moving average of $39.45.

DraftKings (NASDAQ:DKNG) last released its quarterly earnings results on Thursday, November 6th. The company reported ($0.26) earnings per share for the quarter, missing the consensus estimate of $0.01 by ($0.27). DraftKings had a negative net margin of 4.90% and a negative return on equity of 21.47%. The company had revenue of $1.14 billion during the quarter, compared to the consensus estimate of $1.40 billion. During the same quarter last year, the firm earned ($0.60) EPS. The business’s revenue was up 4.4% on a year-over-year basis. DraftKings has set its FY 2025 guidance at EPS. Sell-side analysts expect that DraftKings will post 0.64 EPS for the current year.

Insiders Place Their Bets

In other news, CFO Alan Wayne Ellingson sold 44,693 shares of the firm’s stock in a transaction dated Tuesday, August 19th. The stock was sold at an average price of $44.90, for a total transaction of $2,006,715.70. Following the completion of the transaction, the chief financial officer owned 128,131 shares in the company, valued at $5,753,081.90. This trade represents a 25.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Ryan R. Moore sold 76,390 shares of DraftKings stock in a transaction that occurred on Thursday, August 21st. The stock was sold at an average price of $45.92, for a total value of $3,507,828.80. Following the completion of the sale, the director directly owned 402 shares in the company, valued at approximately $18,459.84. The trade was a 99.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 342,777 shares of company stock valued at $14,328,924 in the last ninety days. Insiders own 47.08% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. Norges Bank bought a new position in shares of DraftKings in the 2nd quarter valued at about $362,554,000. AQR Capital Management LLC boosted its stake in shares of DraftKings by 2,138.9% during the 1st quarter. AQR Capital Management LLC now owns 4,696,244 shares of the company’s stock worth $155,962,000 after purchasing an additional 4,486,488 shares during the period. Brown Advisory Inc. grew its holdings in DraftKings by 53,272.1% during the 2nd quarter. Brown Advisory Inc. now owns 4,056,280 shares of the company’s stock valued at $173,974,000 after purchasing an additional 4,048,680 shares during the last quarter. Eminence Capital LP raised its position in DraftKings by 195.2% in the 1st quarter. Eminence Capital LP now owns 5,178,083 shares of the company’s stock worth $171,964,000 after purchasing an additional 3,423,909 shares during the period. Finally, Nuveen LLC bought a new stake in DraftKings in the first quarter worth about $107,739,000. 37.70% of the stock is owned by hedge funds and other institutional investors.

About DraftKings

DraftKings Inc operates as a digital sports entertainment and gaming company in the United States and internationally. It provides online sports betting and casino, daily fantasy sports, media, and other consumer products, as well as retails sportsbooks. The company also engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators.