DraftKings (NASDAQ:DKNG) Stock Rating Lowered by Zacks Research

DraftKings (NASDAQ:DKNG) was downgraded by investment analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued on Tuesday, Zacks reports.

A number of other analysts have also commented on the company. Northland Securities set a $28.00 price target on DraftKings in a report on Monday, August 10th. UBS Group decreased their price objective on DraftKings from $49.00 to $48.00 and set a “buy” rating for the company in a report on Friday, September 18th. Stifel Nicolaus dropped their target price on DraftKings from $40.00 to $38.00 and set a “buy” rating on the stock in a research report on Wednesday, July 22nd. Deutsche Bank Aktiengesellschaft boosted their target price on DraftKings from $26.00 to $28.00 and gave the company a “hold” rating in a research note on Thursday, July 9th. Finally, Bank of America raised DraftKings from a “neutral” rating to a “buy” rating and set a $27.00 price target for the company in a research report on Monday, October 5th. One equities research analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating, six have given a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, DraftKings has an average rating of “Moderate Buy” and a consensus target price of $33.70.

DraftKings Trading Down 4.2%

DKNG opened at $18.90 on Tuesday. The stock has a market capitalization of $9.38 billion, a P/E ratio of -49.74, a P/E/G ratio of 1.99 and a beta of 1.61. DraftKings has a 12 month low of $18.50 and a 12 month high of $36.98. The firm’s fifty day simple moving average is $22.90 and its 200 day simple moving average is $24.01. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 3.22.

DraftKings (NASDAQ:DKNG) last announced its earnings results on Friday, August 7th. The company reported $0.09 earnings per share for the quarter, topping analysts’ consensus estimates of $0.02 by $0.07. The firm had revenue of $1.44 billion during the quarter, compared to analyst estimates of $1.51 billion. DraftKings had a negative net margin of 2.68% and a negative return on equity of 11.26%. The company’s revenue for the quarter was down 4.6% compared to the same quarter last year. During the same period in the prior year, the business earned $0.30 EPS. As a group, research analysts anticipate that DraftKings will post 0.40 EPS for the current fiscal year.

Insiders Place Their Bets

In other DraftKings news, Director Jocelyn Moore sold 10,759 shares of the firm’s stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $24.05, for a total value of $258,753.95. Following the completion of the transaction, the director directly owned 1,881 shares in the company, valued at $45,238.05. This trade represents a 85.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 47.18% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On DraftKings

Several large investors have recently made changes to their positions in DKNG. CoreCap Advisors LLC grew its holdings in DraftKings by 336.5% during the second quarter. CoreCap Advisors LLC now owns 1,148 shares of the company’s stock worth $29,000 after purchasing an additional 885 shares during the period. SHP Wealth Management acquired a new position in DraftKings during the fourth quarter worth approximately $42,000. Basecamp Wealth Advisors LLC increased its position in DraftKings by 3,547.1% during the first quarter. Basecamp Wealth Advisors LLC now owns 1,240 shares of the company’s stock worth $27,000 after buying an additional 1,206 shares during the last quarter. Ascentis Independent Advisors acquired a new position in DraftKings during the first quarter worth approximately $27,000. Finally, Strategic Investment Solutions Inc. IL bought a new stake in DraftKings in the fourth quarter valued at approximately $69,000. Institutional investors and hedge funds own 37.70% of the company’s stock.

About DraftKings

DraftKings Inc is a digital sports entertainment and gaming company that provides online sports betting, daily fantasy sports and internet-based casino gaming. Its products are delivered through mobile applications and websites, allowing customers to wager on professional and collegiate sports, participate in fantasy contests and play a range of casino games where permitted by law.

The company also offers sports and betting-related content through DraftKings Network and operates additional gaming and entertainment products, including online lottery services in select markets.