DraftKings (NASDAQ:DKNG) Trading Down 4.7% – Here’s Why

DraftKings Inc. (NASDAQ:DKNG) traded down 4.7% on Tuesday . The company traded as low as $23.79 and last traded at $23.95. 1,410,427 shares traded hands during trading, a decline of 90% from the average session volume of 14,100,789 shares. The stock had previously closed at $25.12.

Analyst Upgrades and Downgrades

A number of research analysts have commented on the stock. Benchmark reaffirmed a “buy” rating on shares of DraftKings in a research report on Tuesday, March 3rd. Susquehanna reduced their price target on shares of DraftKings from $33.00 to $32.00 and set a “positive” rating on the stock in a research note on Tuesday, March 31st. BTIG Research increased their price objective on shares of DraftKings from $28.00 to $30.00 and gave the stock a “buy” rating in a research report on Friday, May 8th. JPMorgan Chase & Co. dropped their target price on shares of DraftKings from $32.00 to $31.00 and set an “overweight” rating for the company in a report on Thursday, April 16th. Finally, Zacks Research upgraded DraftKings from a “strong sell” rating to a “hold” rating in a research note on Wednesday, May 20th. 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 issued a Sell rating to the company. According to MarketBeat, DraftKings presently has a consensus rating of “Moderate Buy” and an average price target of $34.32.

DraftKings Stock Down 3.7%

The stock has a market cap of $12.00 billion, a price-to-earnings ratio of 403.00 and a beta of 1.67. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 3.03. The business’s fifty day moving average is $23.67 and its two-hundred day moving average is $27.90.

DraftKings (NASDAQ:DKNG) last posted its quarterly 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 during the quarter, compared to analyst estimates of $1.63 billion. DraftKings had a return on equity of 13.51% and a net margin of 0.93%.The business’s revenue was up 16.8% on a year-over-year basis. During the same quarter last year, the firm earned ($0.07) EPS. Equities analysts forecast that DraftKings Inc. will post 0.62 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Jocelyn Moore sold 2,150 shares of DraftKings stock in a transaction dated 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 transaction, the director owned 1,406 shares in the company, valued at approximately $35,993.60. This trade represents a 60.46% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Paul Liberman sold 484,417 shares of the business’s stock in a transaction dated Wednesday, March 11th. The stock was sold at an average price of $25.16, for a total value of $12,187,931.72. Following the transaction, the insider directly owned 213,597 shares of the company’s stock, valued at approximately $5,374,100.52. This represents a 69.40% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 524,546 shares of company stock worth $13,215,769 over the last 90 days. 47.18% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On DraftKings

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Viking Global Investors LP acquired a new position in shares of DraftKings during the third quarter worth $561,125,000. Capital World Investors raised its stake in DraftKings by 181.4% in 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 in the last quarter. Janus Henderson Group PLC lifted its holdings in DraftKings by 50.8% during the 4th quarter. Janus Henderson Group PLC now owns 25,313,909 shares of the company’s stock worth $858,893,000 after buying an additional 8,524,923 shares during the last quarter. Norges Bank acquired a new position in shares of DraftKings during the 4th quarter worth about $284,466,000. Finally, Spruce House Investment Management LLC boosted its position in shares of DraftKings by 129.6% during the 1st 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 in the last quarter. 37.70% of the stock is currently 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.