DraftKings (NASDAQ:DKNG) Shares Gap Up After Analyst Upgrade

DraftKings Inc. (NASDAQ:DKNG)’s stock price gapped up prior to trading on Friday after Citizens Jmp raised their price target on the stock from $34.00 to $36.00. The stock had previously closed at $23.10, but opened at $23.70. Citizens Jmp currently has a market outperform rating on the stock. DraftKings shares last traded at $24.2870, with a volume of 3,774,030 shares changing hands.

A number of other equities analysts also recently issued reports on DKNG. Roth Mkm raised shares of DraftKings from a “sell” rating to a “buy” rating in a research note on Friday, April 24th. UBS Group upped their target price on DraftKings from $43.00 to $49.00 and gave the stock a “buy” rating in a report on Friday, June 5th. Scotiabank upgraded DraftKings to an “outperform” rating in a research note on Friday, April 24th. Weiss Ratings cut DraftKings from a “sell (d+)” rating to a “sell (d)” rating in a research note on Monday, May 11th. Finally, Argus lowered DraftKings from a “buy” rating to a “hold” rating in a research report on Tuesday, March 17th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, eight have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $34.27.

Insider Activity

In related news, Director Woodrow Levin sold 34,234 shares of the firm’s stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $25.71, for a total transaction of $880,156.14. Following the completion of the sale, the director owned 29,820 shares of the company’s stock, valued at $766,672.20. This trade represents a 53.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider R Stanton Dodge sold 62,500 shares of the business’s stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $29.68, for a total transaction of $1,855,000.00. Following the completion of the transaction, the insider owned 556,258 shares of the company’s stock, valued at approximately $16,509,737.44. The trade was a 10.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 97,596 shares of company stock worth $2,756,991 over the last three months. 47.18% of the stock is currently owned by insiders.

DraftKings News Roundup

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: DraftKings launched DKeX, a proprietary prediction markets exchange built into its app, which could strengthen its competitive position, improve margins, and deepen user engagement. DraftKings Launches Proprietary Exchange to Bolster Differentiated Predictions Experience
• Positive Sentiment: Analyst sentiment remains constructive, with Citizens JMP raising its price target to $36 from $34 and maintaining an outperform rating, signaling confidence in DraftKings’ upside potential. DraftKings price target raised by Citizens JMP
• Neutral Sentiment: Bank of America said DraftKings shares have been volatile as investors balance the growth opportunity from prediction markets against profitability risks and softer engagement trends.
• Neutral Sentiment: Recent commentary from market watchers continues to frame DraftKings as a high-risk, high-reward name, with the stock still trading well below its recent highs despite renewed interest in prediction markets.
• Negative Sentiment: Earlier reports noted the stock was under pressure as investors worried about new competition, macro headwinds, and ongoing litigation/profitability concerns.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Dagco Inc. purchased a new stake in shares of DraftKings during the fourth quarter valued at $26,000. Ascentis Independent Advisors purchased a new position in DraftKings in the 1st quarter worth about $27,000. Basecamp Wealth Advisors LLC lifted its stake in DraftKings by 3,547.1% during the 1st 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 period. Ameriflex Group Inc. lifted its stake in DraftKings by 100.0% during the 3rd quarter. Ameriflex Group Inc. now owns 810 shares of the company’s stock valued at $30,000 after acquiring an additional 405 shares during the period. Finally, Asset Dedication LLC bought a new position in DraftKings during the 3rd quarter valued at about $37,000. 37.70% of the stock is owned by institutional investors.

DraftKings Stock Performance

The business’s fifty day moving average price is $25.05 and its 200-day moving average price is $27.09. The company has a debt-to-equity ratio of 3.03, a quick ratio of 1.02 and a current ratio of 1.02. The stock has a market cap of $12.06 billion, a PE ratio of 404.17 and a beta of 1.66.

DraftKings (NASDAQ:DKNG) last released its quarterly earnings data on Friday, May 8th. The company reported $0.20 earnings per share for the quarter, missing the consensus estimate of $0.22 by ($0.02). The company had revenue of $1.65 billion for the quarter, compared to analysts’ expectations of $1.63 billion. DraftKings had a net margin of 0.93% and a return on equity of 13.51%. The firm’s revenue for the quarter was up 16.8% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.07) earnings per share. As a group, equities research analysts forecast that DraftKings Inc. will post 0.6 EPS for the current fiscal year.

DraftKings Company Profile

DraftKings Inc is a leading digital sports entertainment and gaming company specializing in daily fantasy sports, sports betting and iGaming products. The company provides an integrated platform where users can participate in daily fantasy contests, place wagers on professional sports events, and enjoy a range of online casino-style games. DraftKings’ proprietary technology supports real-time odds, live scoring and advanced analytics to enhance the user experience across mobile and desktop applications.

Founded in 2012 by co-founders Jason Robins, Matthew Kalish and Paul Liberman, DraftKings began as a daily fantasy sports provider and rapidly expanded into regulated sports betting following legislative changes in the United States.