Mizuho Has Lowered Expectations for DraftKings (NASDAQ:DKNG) Stock Price

DraftKings (NASDAQ:DKNG) had its target price decreased by equities researchers at Mizuho from $59.00 to $58.00 in a research note issued on Monday,Benzinga reports. The brokerage presently has an “outperform” rating on the stock. Mizuho’s price target would suggest a potential upside of 54.05% from the company’s previous close.

Other research analysts have also recently issued reports about the stock. Morgan Stanley lifted their price target on shares of DraftKings from $49.00 to $53.00 and gave the company an “overweight” rating in a research report on Monday, February 24th. Bank of America reduced their target price on DraftKings from $60.00 to $50.00 and set a “buy” rating for the company in a report on Friday. TD Securities decreased their target price on DraftKings from $60.00 to $55.00 and set a “buy” rating on the stock in a research report on Thursday, April 24th. BTIG Research reduced their price objective on DraftKings from $64.00 to $52.00 and set a “buy” rating for the company in a research report on Tuesday, April 22nd. Finally, Piper Sandler restated an “overweight” rating and issued a $60.00 target price (up from $48.00) on shares of DraftKings in a research note on Tuesday, February 18th. Two equities research analysts have rated the stock with a hold rating and twenty-six have assigned a buy rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $55.04.

DraftKings Price Performance

NASDAQ:DKNG traded up $1.42 during trading hours on Monday, hitting $37.65. The company’s stock had a trading volume of 6,932,381 shares, compared to its average volume of 9,824,116. The company has a market capitalization of $33.24 billion, a PE ratio of -35.56, a PEG ratio of 1.43 and a beta of 1.89. DraftKings has a 52-week low of $28.69 and a 52-week high of $53.61. The business’s 50-day moving average is $35.48 and its two-hundred day moving average is $39.30. The company has a debt-to-equity ratio of 1.24, a quick ratio of 1.00 and a current ratio of 0.93.

DraftKings (NASDAQ:DKNG) last issued its quarterly earnings results on Thursday, February 13th. The company reported ($0.28) earnings per share for the quarter, missing the consensus estimate of $0.07 by ($0.35). DraftKings had a negative net margin of 10.64% and a negative return on equity of 48.13%. As a group, research analysts anticipate that DraftKings will post 0.64 EPS for the current fiscal year.

Insider Activity at DraftKings

In other news, Director Jocelyn Moore sold 3,420 shares of the business’s stock in a transaction dated Thursday, March 6th. The stock was sold at an average price of $42.00, for a total transaction of $143,640.00. Following the completion of the transaction, the director now directly owns 1,612 shares in the company, valued at approximately $67,704. The trade was a 67.97% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Alan Wayne Ellingson sold 158,661 shares of the stock in a transaction that occurred on Tuesday, February 25th. The shares were sold at an average price of $42.42, for a total transaction of $6,730,399.62. Following the completion of the sale, the chief financial officer now owns 179,435 shares in the company, valued at $7,611,632.70. This represents a 46.93% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 2,681,079 shares of company stock worth $112,941,617 over the last ninety days. Company insiders own 51.19% of the company’s stock.

Institutional Investors Weigh In On DraftKings

Several large investors have recently bought and sold shares of the company. Raiffeisen Bank International AG bought a new stake in shares of DraftKings in the 4th quarter valued at $25,000. FNY Investment Advisers LLC bought a new stake in shares of DraftKings in the first quarter worth about $26,000. Smallwood Wealth Investment Management LLC bought a new stake in shares of DraftKings in the first quarter worth about $27,000. Stonebridge Financial Group LLC acquired a new stake in shares of DraftKings during the fourth quarter worth about $28,000. Finally, Point72 Asia Singapore Pte. Ltd. bought a new position in shares of DraftKings during the 4th quarter valued at about $28,000. Institutional investors 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.