DraftKings (NASDAQ:DKNG) Upgraded by Zacks Research to Hold Rating

Zacks Research upgraded shares of DraftKings (NASDAQ:DKNG) from a strong sell rating to a hold rating in a report published on Wednesday morning,Zacks.com reports.

Several other research firms also recently commented on DKNG. Deutsche Bank Aktiengesellschaft downgraded shares of DraftKings from a “hold” rating to a “hold” rating in a research report on Friday, April 24th. Wedbush assumed coverage on shares of DraftKings in a research report on Friday, April 24th. They set an “outperform” rating for the company. UBS Group reissued a “buy” rating and set a $43.00 target price on shares of DraftKings in a research report on Wednesday. Weiss Ratings cut shares of DraftKings from a “sell (d+)” rating to a “sell (d)” rating in a report on Monday, May 11th. Finally, Northland Securities set a $27.00 price objective on shares of DraftKings in a research report on Monday, May 11th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $34.32.

DraftKings Trading Up 1.6%

DKNG opened at $25.40 on Wednesday. The company has a market cap of $12.60 billion, a P/E ratio of 423.33 and a beta of 1.67. The company has a fifty day moving average price of $23.69 and a two-hundred day moving average price of $27.96. DraftKings has a 1-year low of $20.46 and a 1-year high of $48.78. 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 posted its earnings results on Friday, May 8th. The company reported $0.20 EPS for the quarter, missing the consensus estimate of $0.22 by ($0.02). The business had revenue of $1.65 billion for the quarter, compared to the consensus estimate of $1.63 billion. DraftKings had a return on equity of 13.51% and a net margin of 0.93%.The company’s revenue was up 16.8% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.07) earnings per share. Analysts predict that DraftKings will post 0.62 EPS for the current fiscal year.

Insider Activity at DraftKings

In other news, insider Paul Liberman sold 484,417 shares of the stock in a transaction that occurred on Wednesday, March 11th. The shares were 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 $5,374,100.52. This represents a 69.40% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Erik Bradbury sold 2,883 shares of the stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $24.56, for a total transaction of $70,806.48. Following the transaction, the chief accounting officer directly owned 38,168 shares of the company’s stock, valued at $937,406.08. This represents a 7.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 523,684 shares of company stock valued at $13,193,934 over the last quarter. 47.18% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Ariadne Wealth Management LP grew its position in shares of DraftKings by 11.8% during the 1st quarter. Ariadne Wealth Management LP now owns 12,525 shares of the company’s stock valued at $271,000 after acquiring an additional 1,324 shares during the period. Edgestream Partners L.P. bought a new position in shares of DraftKings during the 1st quarter valued at approximately $4,473,000. Janus Henderson Group PLC grew 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 acquiring an additional 2,351,790 shares during the period. Centaurus Financial Inc. grew its position in shares of DraftKings by 25.5% during the 1st quarter. Centaurus Financial Inc. now owns 13,769 shares of the company’s stock valued at $298,000 after acquiring an additional 2,797 shares during the period. Finally, Bull Harbor Capital LLC bought a new position in shares of DraftKings during the 1st quarter valued at approximately $758,000. 37.70% of the stock is owned by institutional investors.

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.