DraftKings (NASDAQ:DKNG) Cut to Neutral at JPMorgan Chase & Co.

JPMorgan Chase & Co. cut shares of DraftKings (NASDAQ:DKNG) from an overweight rating to a neutral rating in a research report sent to investors on Monday morning, MarketBeat Ratings reports. The firm currently has $21.00 target price on the stock, down from their previous target price of $30.00.

Other equities research analysts have also recently issued reports about the company. Bank of America reiterated a “buy” rating on shares of DraftKings in a research report on Friday, November 6th. Barclays lowered their price target on shares of DraftKings from $35.00 to $34.00 and set an “overweight” rating on the stock in a report on Monday, August 10th. Stifel Nicolaus lowered shares of DraftKings from a “buy” rating to a “hold” rating and cut their price objective for the company from $32.00 to $21.00 in a research report on Monday. Citizens Jmp reduced their price objective on shares of DraftKings from $37.00 to $35.00 and set a “market outperform” rating for the company in a research note on Thursday, September 24th. Finally, Wolfe Research initiated coverage on shares of DraftKings in a research note on Wednesday, September 2nd. They set an “outperform” rating and a $40.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, ten have given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, DraftKings presently has an average rating of “Moderate Buy” and a consensus price target of $27.61.

DraftKings Price Performance

DraftKings stock opened at $19.64 on Monday. The firm has a market capitalization of $9.79 billion, a P/E ratio of -24.55, a PEG ratio of 2.54 and a beta of 1.65. DraftKings has a one year low of $16.55 and a one year high of $36.98. The company has a debt-to-equity ratio of 12.21, a current ratio of 0.99 and a quick ratio of 1.02. The business has a fifty day moving average price of $21.20 and a 200-day moving average price of $23.88.

DraftKings (NASDAQ:DKNG) last released its quarterly earnings data on Thursday, November 5th. The company reported ($0.53) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.41) by ($0.12). The company had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.39 billion. DraftKings had a negative net margin of 5.91% and a negative return on equity of 43.92%. The business’s revenue for the quarter was up 16.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.26) earnings per share. As a group, equities research analysts forecast that DraftKings will post 0.31 EPS for the current year.

Insider Buying and Selling

In other DraftKings news, Director Jocelyn Moore sold 10,759 shares of the company’s stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $24.05, for a total value of $258,753.95. Following the sale, the director owned 1,881 shares in the company, valued at approximately $45,238.05. This represents a 85.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Alan Ellingson bought 18,908 shares of the business’s stock in a transaction dated Monday, November 9th. The stock was bought at an average cost of $18.51 per share, for a total transaction of $349,987.08. Following the completion of the purchase, the chief financial officer owned 214,692 shares of the company’s stock, valued at approximately $3,973,948.92. The trade was a 9.66% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 47.18% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On DraftKings

Hedge funds have recently added to or reduced their stakes in the stock. Janus Henderson Group PLC increased its position in shares of DraftKings by 9.3% during the 1st quarter. Janus Henderson Group PLC now owns 27,665,699 shares of the company’s stock valued at $588,288,000 after purchasing an additional 2,351,790 shares during the last quarter. Spruce House Investment Management LLC lifted its stake in shares of DraftKings by 129.6% in the 1st quarter. Spruce House Investment Management LLC now owns 9,650,000 shares of the company’s stock worth $208,633,000 after purchasing an additional 5,446,166 shares during the period. Swiss National Bank boosted its holdings in shares of DraftKings by 7.4% in the first quarter. Swiss National Bank now owns 1,314,864 shares of the company’s stock worth $28,427,000 after buying an additional 90,400 shares during the last quarter. Bank of New York Mellon Corp purchased a new position in shares of DraftKings in the second quarter worth approximately $24,014,000. Finally, Quantinno Capital Management LP boosted its holdings in shares of DraftKings by 273.9% in the first quarter. Quantinno Capital Management LP now owns 898,241 shares of the company’s stock worth $19,420,000 after buying an additional 658,006 shares during the last quarter. 37.70% of the stock is currently owned by hedge funds and other institutional investors.

Key DraftKings News

Here’s some of the latest news about DKNG:

• Positive Sentiment: CFO Alan Ellingson bought 18,908 shares for about $350,000, increasing his holdings by 9.66%. The purchase may signal confidence in the business, although it does not address concerns about profitability or the outlook. Insider purchase report
• Negative Sentiment: The main concern is the expense and uncertain economics of DraftKings’ Predictions business. An investigation by Levi & Korsinsky questions whether SEC filings adequately disclosed the investment’s costs before the company cited a $650 million to $700 million commitment. The inquiry is an allegation, not a finding of wrongdoing. Levi & Korsinsky investigation notice
• Negative Sentiment: Rosen Law Firm also announced an investigation into potential securities claims, alleging DraftKings may have provided materially misleading business information. The announcement creates a legal overhang but does not establish that the claims have merit. Rosen Law Firm investigation notice

DraftKings Company Profile

DraftKings Inc. is a digital sports and entertainment company founded in 2012. It began as a daily fantasy sports platform and has since expanded into online sports betting and gaming. The company offers daily fantasy contests, a sportsbook and online casino products, including games such as slots and table games. Its services are available in a range of U.S. jurisdictions and in Ontario, Canada, where permitted by local regulations. DraftKings is headquartered in Boston, Massachusetts. Co-founder Jason Robins serves as the company’s chief executive officer.