DraftKings (NASDAQ:DKNG) Earns Buy Rating from Needham & Company LLC

DraftKings (NASDAQ:DKNG)‘s stock had its “buy” rating reissued by analysts at Needham & Company LLC in a note issued to investors on Monday,Benzinga reports. They currently have a $35.00 price target on the stock. Needham & Company LLC’s price target suggests a potential upside of 37.15% from the company’s previous close.

A number of other analysts have also commented on the stock. Deutsche Bank Aktiengesellschaft lowered shares of DraftKings from a “hold” rating to a “hold” rating in a report on Friday, April 24th. Raymond James Financial raised shares of DraftKings from a “market perform” rating to an “outperform” rating in a research report on Friday, April 24th. Guggenheim began coverage on shares of DraftKings in a report on Friday, April 24th. They issued a “buy” rating for the company. Roth Mkm raised shares of DraftKings from a “sell” rating to a “buy” rating in a report on Friday, April 24th. Finally, Rothschild & Co Redburn set a $35.00 price target on shares of DraftKings in a report on Friday, January 30th. Twenty-seven research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $34.76.

DraftKings Price Performance

DKNG opened at $25.52 on Monday. The company has a fifty day moving average price of $23.56 and a two-hundred day moving average price of $28.48. The company has a debt-to-equity ratio of 2.91, a quick ratio of 1.03 and a current ratio of 1.03. DraftKings has a 52 week low of $20.46 and a 52 week high of $48.78. The firm has a market capitalization of $12.65 billion, a PE ratio of 425.33, a P/E/G ratio of 1.20 and a beta of 1.67.

DraftKings (NASDAQ:DKNG) last released its earnings results on Thursday, May 7th. The company reported $0.20 EPS for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.02). DraftKings had a return on equity of 12.71% and a net margin of 0.93%.The business had revenue of $1.65 billion for the quarter, compared to analyst estimates of $1.63 billion. During the same period in the prior year, the firm posted ($0.07) EPS. DraftKings’s revenue was up 16.8% on a year-over-year basis. As a group, analysts anticipate that DraftKings will post 0.56 earnings per share for the current year.

Insider Activity

In related news, Director Harry Sloan bought 100,000 shares of DraftKings stock in a transaction that occurred on Tuesday, February 17th. The stock was purchased at an average cost of $21.85 per share, with a total value of $2,185,000.00. Following the purchase, the director owned 350,219 shares in the company, valued at approximately $7,652,285.15. This trade represents a 39.96% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Paul Liberman sold 484,417 shares of the company’s stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $25.16, for a total transaction of $12,187,931.72. Following the completion of the transaction, the insider directly owned 213,597 shares of the company’s stock, valued at approximately $5,374,100.52. The trade was a 69.40% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 496,718 shares of company stock worth $12,477,308 over the last quarter. Corporate insiders own 47.18% of the company’s stock.

Hedge Funds Weigh In On DraftKings

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its stake in DraftKings by 3.1% in the 4th quarter. Vanguard Group Inc. now owns 44,758,204 shares of the company’s stock worth $1,542,368,000 after purchasing an additional 1,354,457 shares during the period. Janus Henderson Group PLC boosted its stake in DraftKings by 50.8% in the 4th quarter. Janus Henderson Group PLC now owns 25,313,909 shares of the company’s stock worth $858,893,000 after purchasing an additional 8,524,923 shares during the period. Viking Global Investors LP boosted its stake in DraftKings by 27.4% in the 4th quarter. Viking Global Investors LP now owns 19,119,912 shares of the company’s stock worth $658,872,000 after purchasing an additional 4,116,561 shares during the period. Capital World Investors boosted its stake in DraftKings by 181.4% in the 4th quarter. Capital World Investors now owns 18,626,429 shares of the company’s stock worth $641,867,000 after purchasing an additional 12,008,357 shares during the period. Finally, AQR Capital Management LLC boosted its stake in DraftKings by 41.0% in the 4th quarter. AQR Capital Management LLC now owns 16,474,009 shares of the company’s stock worth $567,694,000 after purchasing an additional 4,788,337 shares during the period. 37.70% of the stock is owned by institutional investors and hedge funds.

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.