DraftKings (NASDAQ:DKNG) Stock Moved Down to “Strong Sell” by Zacks Research

DraftKings (NASDAQ:DKNG) was downgraded by investment analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Tuesday, Zacks reports.

A number of other research analysts have also recently commented on the stock. Wells Fargo & Company cut their price target on shares of DraftKings from $32.00 to $29.00 and set an “overweight” rating on the stock in a report on Monday, July 20th. BTIG Research lowered their price objective on shares of DraftKings from $30.00 to $25.00 and set a “buy” rating for the company in a research report on Thursday, October 1st. Moffett Nathanson dropped their target price on shares of DraftKings from $27.00 to $25.00 in a research note on Wednesday, July 15th. TD Cowen upped their target price on shares of DraftKings from $30.00 to $35.00 and gave the stock a “buy” rating in a research note on Friday, July 10th. Finally, Susquehanna reduced their target price on shares of DraftKings from $33.00 to $27.00 and set a “positive” rating on the stock in a research report on Thursday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating, six have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $33.70.

DraftKings Price Performance

DKNG opened at $18.90 on Tuesday. The business has a fifty day moving average of $22.90 and a 200 day moving average of $24.01. DraftKings has a 52-week low of $18.50 and a 52-week high of $36.98. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 3.22. The stock has a market cap of $9.38 billion, a P/E ratio of -49.74, a PEG ratio of 1.99 and a beta of 1.61.

DraftKings (NASDAQ:DKNG) last released its earnings results on Friday, August 7th. The company reported $0.09 earnings per share for the quarter, topping analysts’ consensus estimates of $0.02 by $0.07. DraftKings had a negative return on equity of 11.26% and a negative net margin of 2.68%. The business had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.51 billion. During the same quarter last year, the firm posted $0.30 earnings per share. The business’s revenue was down 4.6% compared to the same quarter last year. As a group, sell-side analysts anticipate that DraftKings will post 0.40 EPS for the current year.

Insider Transactions at DraftKings

In other news, Director Jocelyn Moore sold 10,759 shares of DraftKings stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $24.05, for a total value of $258,753.95. Following the transaction, the director directly owned 1,881 shares in the company, valued at approximately $45,238.05. This trade represents a 85.12% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 47.18% of the company’s stock.

Institutional Investors Weigh In On DraftKings

Institutional investors 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 first quarter. Janus Henderson Group PLC now owns 27,665,699 shares of the company’s stock worth $588,288,000 after purchasing an additional 2,351,790 shares in the last quarter. Spruce House Investment Management LLC grew its stake in shares of DraftKings by 129.6% during the first quarter. Spruce House Investment Management LLC now owns 9,650,000 shares of the company’s stock worth $208,633,000 after acquiring an additional 5,446,166 shares during the last quarter. Eminence Capital LP grew its stake in shares of DraftKings by 34.3% during the fourth quarter. Eminence Capital LP now owns 8,426,755 shares of the company’s stock worth $290,386,000 after acquiring an additional 2,151,892 shares during the last quarter. Bamco Inc. NY increased its holdings in shares of DraftKings by 13.8% during the fourth quarter. Bamco Inc. NY now owns 4,674,455 shares of the company’s stock valued at $161,082,000 after acquiring an additional 568,487 shares in the last quarter. Finally, Swiss National Bank raised its position in shares of DraftKings by 7.4% in the 1st quarter. Swiss National Bank now owns 1,314,864 shares of the company’s stock valued at $28,427,000 after purchasing an additional 90,400 shares during the last quarter. Institutional investors own 37.70% of the company’s stock.

About DraftKings

DraftKings Inc is a digital sports entertainment and gaming company that provides online sports betting, daily fantasy sports and internet-based casino gaming. Its products are delivered through mobile applications and websites, allowing customers to wager on professional and collegiate sports, participate in fantasy contests and play a range of casino games where permitted by law.

The company also offers sports and betting-related content through DraftKings Network and operates additional gaming and entertainment products, including online lottery services in select markets.