Insider Selling: DraftKings (NASDAQ:DKNG) CAO Sells 862 Shares of Stock

DraftKings Inc. (NASDAQ:DKNG) CAO Erik Bradbury sold 862 shares of the company’s stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $25.33, for a total value of $21,834.46. Following the completion of the sale, the chief accounting officer owned 38,168 shares of the company’s stock, valued at approximately $966,795.44. This trade represents a 2.21% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Erik Bradbury also recently made the following trade(s):

• On Tuesday, March 3rd, Erik Bradbury sold 2,883 shares of DraftKings stock. The shares were sold at an average price of $24.56, for a total value of $70,806.48.

DraftKings Price Performance

Shares of DraftKings stock traded down $0.28 during trading on Friday, hitting $25.12. The stock had a trading volume of 9,595,951 shares, compared to its average volume of 14,240,026. The company has a debt-to-equity ratio of 3.03, a current ratio of 1.02 and a quick ratio of 1.02. The firm has a market cap of $12.46 billion, a P/E ratio of 418.67 and a beta of 1.67. The business has a fifty day moving average of $23.69 and a two-hundred day moving average of $27.96. DraftKings Inc. has a fifty-two week low of $20.46 and a fifty-two week high of $48.78.

DraftKings (NASDAQ:DKNG) last announced its quarterly earnings data on Friday, May 8th. The company reported $0.20 earnings per share for the quarter, missing the consensus estimate of $0.22 by ($0.02). The firm 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 quarter last year, the company earned ($0.07) EPS. On average, sell-side analysts expect that DraftKings Inc. will post 0.62 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

DKNG has been the topic of a number of recent analyst reports. Deutsche Bank Aktiengesellschaft lowered DraftKings from a “hold” rating to a “hold” rating in a research report on Friday, April 24th. Morgan Stanley reaffirmed an “overweight” rating on shares of DraftKings in a research report on Thursday. Citigroup boosted their target price on DraftKings from $29.00 to $30.00 and gave the stock a “buy” rating in a research report on Tuesday, May 12th. Barclays boosted their target price on DraftKings from $33.00 to $35.00 and gave the stock an “overweight” rating in a research report on Monday, May 11th. Finally, Canaccord Genuity Group cut their target price on DraftKings from $50.00 to $44.00 and set a “buy” rating on the stock in a research report on Friday, February 13th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, DraftKings presently has an average rating of “Moderate Buy” and a consensus target price of $34.32.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of DKNG. Viking Global Investors LP acquired a new position in DraftKings during the third quarter valued at $561,125,000. Capital World Investors raised its position in DraftKings by 181.4% during the fourth quarter. Capital World Investors now owns 18,626,429 shares of the company’s stock valued at $641,867,000 after buying an additional 12,008,357 shares during the period. Janus Henderson Group PLC raised its position in DraftKings by 50.8% during the fourth quarter. Janus Henderson Group PLC now owns 25,313,909 shares of the company’s stock valued at $858,893,000 after buying an additional 8,524,923 shares during the period. Norges Bank acquired a new position in DraftKings during the fourth quarter valued at $284,466,000. Finally, Spruce House Investment Management LLC raised its position in DraftKings by 129.6% during the first quarter. Spruce House Investment Management LLC now owns 9,650,000 shares of the company’s stock valued at $208,633,000 after buying an additional 5,446,166 shares during the period. 37.70% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting DraftKings

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: Freedom Capital Markets initiated coverage on DraftKings with a buy/strong-buy stance, while another note highlighted upside tied to DraftKings’ opportunity in prediction markets. Freedom Capital Markets initiates coverage of DraftKings (DKNG) with buy recommendation
• Positive Sentiment: Wall Street sentiment also looks supportive, with Zacks noting that analysts’ average price target still implies roughly 34% upside for DraftKings. Can DraftKings (DKNG) Climb 33.99% to Reach the Level Wall Street Analysts Expect?
• Positive Sentiment: DraftKings and FanDuel backing a $9.3 million Alabama political push may be viewed as a strategic effort to shape a more favorable operating environment for sports betting expansion. DraftKings, FanDuel Back $9.3 Million Alabama Political Push
• Neutral Sentiment: DraftKings is also drawing attention as a trending stock, reflecting elevated investor interest but not a specific new catalyst. DraftKings Inc. (DKNG) Is a Trending Stock: Facts to Know Before Betting on It
• Neutral Sentiment: Zacks Research also moved DraftKings from strong sell to hold, which is an improvement but still not an outright bullish call. DraftKings was upgraded by Zacks Research from strong sell to hold
• Negative Sentiment: Some coverage pointed to DraftKings sliding on cautious revenue guidance, reminding investors that growth expectations remain a concern. DraftKings (DKNG) Slid on Cautious Revenue Guidance
• Negative Sentiment: An insider-selling report may also weigh on sentiment, as a DraftKings director sold about $880,000 in stock. Insider Selling: DraftKings (NASDAQ:DKNG) Director Sells $880,156.14 in Stock

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.