DraftKings (NASDAQ:DKNG) Shares Up 10.7% – Here’s Why

DraftKings Inc. (NASDAQ:DKNG) shot up 10.7% during mid-day trading on Tuesday . The company traded as high as $27.58 and last traded at $27.4430. 4,217,692 shares changed hands during trading, a decline of 70% from the average session volume of 14,022,433 shares. The stock had previously closed at $24.78.

More DraftKings News

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: DraftKings reported rapid growth on its prediction-markets platform, with annualized consumer volume reaching $1.3 billion and total volume climbing to $3.1 billion, fueling optimism about a new growth engine. DraftKings Sees $1.3 Billion in Prediction Market Trading. The Stock Is Soaring.
• Positive Sentiment: Retail traders and options activity accelerated after the update, with call buying signaling expectations for more upside if prediction-market momentum continues. Call Traders Target DraftKings Stock Amid Strong Volume Growth
• Positive Sentiment: UBS reiterated a Buy rating on DraftKings, reinforcing the view that Wall Street is becoming more constructive on the company’s growth outlook. UBS Remains a Buy on DraftKings (DKNG)
• Neutral Sentiment: DraftKings CEO Jason Robins is scheduled to participate in an upcoming investor conference, which could provide more color on strategy but is not itself a major catalyst. DraftKings Announces Jason Robins’ Participation in Upcoming Event
• Neutral Sentiment: DraftKings also had a short-interest filing showing no meaningful short base, which does not appear to be a major driver of the move.

Analyst Ratings Changes

A number of research firms recently issued reports on DKNG. UBS Group increased their target price on DraftKings from $43.00 to $49.00 and gave the stock a “buy” rating in a research note on Friday, June 5th. Argus cut shares of DraftKings from a “buy” rating to a “hold” rating in a research note on Tuesday, March 17th. Roth Mkm raised shares of DraftKings from a “sell” rating to a “buy” rating in a research note on Friday, April 24th. New Street Research set a $29.00 price target on shares of DraftKings in a research note on Monday, June 1st. Finally, BTIG Research raised their price target on shares of DraftKings from $28.00 to $30.00 and gave the stock a “buy” rating in a research note on Friday, May 8th. One equities research 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 issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $34.21.

DraftKings Stock Up 4.3%

The company has a market capitalization of $14.28 billion, a P/E ratio of 479.83 and a beta of 1.66. The firm’s 50 day moving average price is $24.17 and its two-hundred day moving average price is $27.56. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 3.03.

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

Insider Activity at DraftKings

In other news, Director Jocelyn Moore sold 2,150 shares of the stock in a transaction that occurred on Friday, March 13th. The stock was sold at an average price of $25.60, for a total value of $55,040.00. Following the completion of the sale, the director owned 1,406 shares of the company’s stock, valued at approximately $35,993.60. This represents a 60.46% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Woodrow Levin sold 34,234 shares of the stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $25.71, for a total value of $880,156.14. Following the completion of the sale, the director directly owned 29,820 shares of the company’s stock, valued at approximately $766,672.20. The trade was a 53.45% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 37,246 shares of company stock valued at $957,031. 47.18% of the stock is currently owned by insiders.

Institutional Investors Weigh In On DraftKings

Several large investors have recently made changes to their positions in DKNG. Dagco Inc. acquired a new stake in shares of DraftKings in the 4th quarter valued at approximately $26,000. Ascentis Independent Advisors acquired a new stake in shares of DraftKings in the 1st quarter valued at approximately $27,000. Ameriflex Group Inc. boosted its holdings in shares of DraftKings by 100.0% in the 3rd quarter. Ameriflex Group Inc. now owns 810 shares of the company’s stock valued at $30,000 after buying an additional 405 shares during the last quarter. Asset Dedication LLC acquired a new stake in shares of DraftKings in the 3rd quarter valued at approximately $37,000. Finally, Montag A & Associates Inc. lifted its holdings in DraftKings by 82.5% during the 4th quarter. Montag A & Associates Inc. now owns 1,106 shares of the company’s stock valued at $38,000 after purchasing an additional 500 shares during the last quarter. Institutional investors and hedge funds own 37.70% of the company’s stock.

About DraftKings

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.