Mizuho Begins Coverage on DraftKings (NASDAQ:DKNG)

Mizuho initiated coverage on shares of DraftKings (NASDAQ:DKNG) in a report released on Tuesday morning, Marketbeat Ratings reports. The firm issued a buy rating and a $58.00 price objective on the stock.

Other analysts have also recently issued research reports about the company. Morgan Stanley boosted their target price on DraftKings from $40.00 to $49.00 and gave the stock an overweight rating in a report on Wednesday, February 28th. Oppenheimer increased their target price on DraftKings from $55.00 to $60.00 and gave the company an outperform rating in a research note on Tuesday, February 20th. UBS Group increased their target price on DraftKings from $44.00 to $56.00 and gave the company a buy rating in a research note on Tuesday, March 5th. Piper Sandler increased their target price on DraftKings from $40.00 to $50.00 and gave the company an overweight rating in a research note on Tuesday, February 13th. Finally, Wells Fargo & Company increased their target price on DraftKings from $39.00 to $53.00 and gave the company an overweight rating in a research note on Tuesday, February 20th. Two research analysts have rated the stock with a sell rating, one has given a hold rating and twenty-four have issued a buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of Moderate Buy and an average price target of $46.43.

DraftKings Price Performance

DraftKings stock opened at $45.41 on Tuesday. The firm’s 50-day simple moving average is $42.43 and its 200 day simple moving average is $36.28. DraftKings has a 52 week low of $17.42 and a 52 week high of $49.57. The firm has a market capitalization of $39.35 billion, a PE ratio of -25.95 and a beta of 1.87. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 1.49.

DraftKings (NASDAQ:DKNG) last announced its earnings results on Friday, February 16th. The company reported ($0.10) earnings per share for the quarter, missing the consensus estimate of $0.06 by ($0.16). DraftKings had a negative net margin of 21.88% and a negative return on equity of 87.24%. The firm had revenue of $1.23 billion during the quarter, compared to analyst estimates of $1.24 billion. During the same period in the previous year, the firm posted ($0.53) EPS. The company’s revenue for the quarter was up 43.9% compared to the same quarter last year. On average, equities research analysts predict that DraftKings will post -0.24 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Jason Robins sold 200,000 shares of the stock in a transaction dated Monday, January 22nd. The stock was sold at an average price of $37.82, for a total value of $7,564,000.00. Following the completion of the sale, the insider now directly owns 3,815,698 shares of the company’s stock, valued at approximately $144,309,698.36. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. In other news, insider Jason Robins sold 200,000 shares of the firm’s stock in a transaction dated Monday, January 22nd. The stock was sold at an average price of $37.82, for a total transaction of $7,564,000.00. Following the completion of the sale, the insider now directly owns 3,815,698 shares of the company’s stock, valued at approximately $144,309,698.36. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Paul Liberman sold 510,000 shares of the firm’s stock in a transaction dated Monday, January 29th. The stock was sold at an average price of $40.00, for a total value of $20,400,000.00. Following the sale, the insider now directly owns 2,291,406 shares of the company’s stock, valued at $91,656,240. The disclosure for this sale can be found here. In the last ninety days, insiders sold 1,596,101 shares of company stock valued at $65,685,509. Corporate insiders own 51.19% of the company’s stock.

Institutional Trading of DraftKings

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Marshall Wace LLP grew its holdings in shares of DraftKings by 298.2% during the 2nd quarter. Marshall Wace LLP now owns 1,114,676 shares of the company’s stock worth $29,617,000 after purchasing an additional 834,719 shares in the last quarter. Deutsche Bank AG grew its holdings in shares of DraftKings by 169.1% during the 3rd quarter. Deutsche Bank AG now owns 1,338,075 shares of the company’s stock worth $39,393,000 after purchasing an additional 840,755 shares in the last quarter. EP Wealth Advisors LLC acquired a new stake in shares of DraftKings during the 3rd quarter worth approximately $209,000. Schonfeld Strategic Advisors LLC grew its holdings in shares of DraftKings by 27.6% during the 3rd quarter. Schonfeld Strategic Advisors LLC now owns 296,900 shares of the company’s stock worth $8,741,000 after purchasing an additional 64,186 shares in the last quarter. Finally, Asset Management One Co. Ltd. acquired a new stake in shares of DraftKings during the 3rd quarter worth approximately $4,502,000. Institutional investors and hedge funds own 37.70% of the company’s stock.

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.