Stock Traders Purchase Large Volume of DraftKings Call Options (NASDAQ:DKNG)

DraftKings Inc. (NASDAQ:DKNG) was the target of some unusual options trading activity on Wednesday. Stock investors purchased 41,345 call options on the company. This represents an increase of approximately 16% compared to the average volume of 35,632 call options.

DraftKings Stock Down 7.9%

NASDAQ:DKNG traded down $1.86 during trading hours on Wednesday, hitting $21.75. 12,941,323 shares of the company’s stock traded hands, compared to its average volume of 13,611,737. The firm has a market cap of $10.79 billion, a P/E ratio of 360.40 and a beta of 1.66. DraftKings has a twelve month low of $20.46 and a twelve month high of $48.78. 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’s fifty day moving average price is $25.49 and its two-hundred day moving average price is $25.14.

DraftKings (NASDAQ:DKNG) last announced its quarterly earnings data on Friday, May 8th. The company reported $0.20 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.22 by ($0.02). DraftKings had a return on equity of 13.51% and a net margin of 0.93%.The business had revenue of $1.65 billion during the quarter, compared to analysts’ expectations of $1.63 billion. During the same period in the prior year, the company posted ($0.07) earnings per share. The firm’s revenue was up 16.8% on a year-over-year basis. On average, research analysts expect that DraftKings will post 0.54 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on DKNG shares. HSBC raised shares of DraftKings from a “hold” rating to a “hold” rating in a report on Friday, April 24th. Truist Financial cut their target price on DraftKings from $30.00 to $29.00 and set a “buy” rating for the company in a research report on Monday, July 20th. Roth Capital upgraded shares of DraftKings from a “sell” rating to a “buy” rating in a research report on Friday, April 24th. Sanford C. Bernstein reissued an “outperform” rating on shares of DraftKings in a research note on Thursday, June 11th. Finally, Zacks Research upgraded DraftKings from a “strong sell” rating to a “hold” rating in a report on Wednesday, May 20th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $34.37.

Insider Transactions at DraftKings

In other DraftKings news, Director Woodrow Levin sold 34,234 shares of the stock in a transaction 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 sale, the director directly owned 29,820 shares of the company’s stock, valued at approximately $766,672.20. This represents a 53.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider R Stanton Dodge sold 62,500 shares of the stock in a transaction dated 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 sale, the insider owned 556,258 shares in the company, valued at approximately $16,509,737.44. This trade represents a 10.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 97,596 shares of company stock valued at $2,756,991 over the last quarter. Insiders own 47.18% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in DKNG. LifeGoal Investments LLC acquired a new stake in shares of DraftKings during the 2nd quarter valued at $218,000. CoreCap Advisors LLC raised its holdings in shares of DraftKings by 336.5% during the second quarter. CoreCap Advisors LLC now owns 1,148 shares of the company’s stock worth $29,000 after acquiring an additional 885 shares in the last quarter. Stableford Capital II LLC acquired a new stake in DraftKings during the second quarter valued at $835,000. Basecamp Wealth Advisors LLC grew its stake 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 purchasing an additional 1,206 shares in the last quarter. Finally, Pacer Advisors Inc. increased its position in DraftKings by 13.5% in the 1st quarter. Pacer Advisors Inc. now owns 12,369 shares of the company’s stock worth $267,000 after purchasing an additional 1,468 shares during the last quarter. Institutional investors and hedge funds own 37.70% of the company’s stock.

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.