DraftKings’ (DKNG) “Buy” Rating Reiterated at Needham & Company LLC

DraftKings (NASDAQ:DKNG)‘s stock had its “buy” rating reaffirmed by equities research analysts at Needham & Company LLC in a report released on Friday, Marketbeat.com reports. They currently have a $35.00 target price on the stock. Needham & Company LLC’s price target would indicate a potential upside of 55.76% from the company’s previous close.

Other analysts also recently issued reports about the stock. Morgan Stanley decreased their target price on shares of DraftKings from $39.00 to $36.00 and set an “overweight” rating for the company in a research report on Thursday, July 23rd. Barclays cut their price target on shares of DraftKings from $35.00 to $34.00 and set an “overweight” rating on the stock in a report on Monday, August 10th. Susquehanna decreased their price objective on shares of DraftKings from $32.00 to $31.00 and set a “positive” rating for the company in a report on Wednesday, July 1st. JPMorgan Chase & Co. decreased their price objective on shares of DraftKings from $34.00 to $33.00 and set an “overweight” rating for the company in a report on Monday, August 10th. Finally, Wolfe Research initiated coverage on shares of DraftKings in a research report on Wednesday, September 2nd. They set an “outperform” rating and a $40.00 target price on the stock. One investment analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $34.39.

DraftKings Stock Down 7.6%

Shares of DraftKings stock opened at $22.47 on Friday. The firm has a market cap of $11.16 billion, a price-to-earnings ratio of -59.13, a P/E/G ratio of 1.99 and a beta of 1.63. The company has a debt-to-equity ratio of 3.22, a current ratio of 1.02 and a quick ratio of 1.02. DraftKings has a 52-week low of $20.46 and a 52-week high of $44.22. The stock has a 50-day simple moving average of $24.41 and a 200-day simple moving average of $24.58.

DraftKings (NASDAQ:DKNG) last announced its quarterly earnings results on Friday, August 7th. The company reported $0.09 EPS for the quarter, beating the consensus estimate of $0.02 by $0.07. DraftKings had a negative return on equity of 11.26% and a negative net margin of 2.68%.The business had revenue of $1.44 billion during the quarter, compared to analysts’ expectations of $1.51 billion. During the same quarter in the previous year, the business posted $0.30 EPS. The firm’s quarterly revenue was down 4.6% compared to the same quarter last year. On average, equities research analysts expect that DraftKings will post 0.49 earnings per share for the current fiscal year.

Insider Buying and Selling at DraftKings

In related news, Director Jocelyn Moore sold 10,759 shares of the company’s stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $24.05, for a total transaction of $258,753.95. Following the completion of the sale, the director directly owned 1,881 shares of the company’s stock, valued at approximately $45,238.05. This represents a 85.12% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 47.18% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of DKNG. Janus Henderson Group PLC boosted its holdings 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 acquiring an additional 8,524,923 shares during the period. Capital World Investors increased its stake in shares of DraftKings by 181.4% in the fourth 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. Geode Capital Management LLC lifted its position in shares of DraftKings by 2.1% during the 4th quarter. Geode Capital Management LLC now owns 9,494,860 shares of the company’s stock worth $326,394,000 after purchasing an additional 192,160 shares during the last quarter. Eminence Capital LP lifted its position in shares of DraftKings by 34.3% during the 4th quarter. Eminence Capital LP now owns 8,426,755 shares of the company’s stock worth $290,386,000 after purchasing an additional 2,151,892 shares during the last quarter. Finally, Norges Bank bought a new stake in DraftKings during the 4th quarter valued at approximately $284,466,000. Institutional investors own 37.70% of the company’s stock.

About DraftKings

DraftKings Inc is a digital sports entertainment and gaming company that operates online sports betting, iGaming and daily fantasy sports platforms. Its products enable customers to place bets on professional and collegiate sports, play online casino games where permitted, and participate in fantasy contests across a range of sports.

The company also offers related services, including retail sportsbooks in select jurisdictions and sports media content through DraftKings Network. Its offerings are available in U.S.