DraftKings (NASDAQ:DKNG) CFO Buys $349,987.08 in Stock

DraftKings Inc. (NASDAQ:DKNG) CFO Alan Ellingson purchased 18,908 shares of DraftKings stock in a transaction on Monday, November 9th. The stock was bought at an average price of $18.51 per share, for a total transaction of $349,987.08. Following the transaction, the chief financial officer directly owned 214,692 shares in the company, valued at approximately $3,973,948.92. The trade was a 9.66% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this hyperlink.

DraftKings Price Performance

DraftKings stock opened at $19.64 on Thursday. The stock’s 50 day moving average is $21.20 and its 200 day moving average is $23.88. DraftKings Inc. has a one year low of $16.55 and a one year high of $36.98. The firm has a market cap of $9.79 billion, a P/E ratio of -24.55, a P/E/G ratio of 2.54 and a beta of 1.65. The company has a debt-to-equity ratio of 12.21, a current ratio of 0.99 and a quick ratio of 1.02.

DraftKings (NASDAQ:DKNG) last released its quarterly earnings results on Thursday, November 5th. The company reported ($0.53) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.41) by ($0.12). DraftKings had a negative return on equity of 43.92% and a negative net margin of 5.91%. The firm had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.39 billion. During the same quarter in the previous year, the business posted ($0.26) EPS. The firm’s revenue for the quarter was up 16.2% compared to the same quarter last year. As a group, research analysts expect that DraftKings Inc. will post 0.31 EPS for the current year.

Hedge Funds Weigh In On DraftKings

Several institutional investors have recently added to or reduced their stakes in the stock. Private Advisor Group LLC grew its holdings in DraftKings by 11.0% during the third quarter. Private Advisor Group LLC now owns 74,437 shares of the company’s stock valued at $1,414,000 after purchasing an additional 7,356 shares during the period. Edgestream Partners L.P. purchased a new stake in shares of DraftKings during the 3rd quarter valued at approximately $870,000. HighTower Advisors LLC boosted its holdings in DraftKings by 5.0% in the 3rd quarter. HighTower Advisors LLC now owns 134,098 shares of the company’s stock worth $2,548,000 after buying an additional 6,403 shares during the period. Ibex Investors LLC grew its stake in DraftKings by 92.3% in the 3rd quarter. Ibex Investors LLC now owns 125,000 shares of the company’s stock valued at $2,375,000 after buying an additional 60,000 shares in the last quarter. Finally, Machina Capital S.A.S. purchased a new stake in shares of DraftKings during the third quarter worth $224,000. Institutional investors own 37.70% of the company’s stock.

Key Headlines Impacting DraftKings

These are some of the DKNG headlines that stood out recently:

• Positive Sentiment: CFO Alan Ellingson bought 18,908 shares for about $350,000, increasing his holdings by 9.66%. The purchase may signal confidence in the business, although it does not address concerns about profitability or the outlook. Insider purchase report
• Negative Sentiment: The main concern is the expense and uncertain economics of DraftKings’ Predictions business. An investigation by Levi & Korsinsky questions whether SEC filings adequately disclosed the investment’s costs before the company cited a $650 million to $700 million commitment. The inquiry is an allegation, not a finding of wrongdoing. Levi & Korsinsky investigation notice
• Negative Sentiment: Rosen Law Firm also announced an investigation into potential securities claims, alleging DraftKings may have provided materially misleading business information. The announcement creates a legal overhang but does not establish that the claims have merit. Rosen Law Firm investigation notice

Analyst Ratings Changes

A number of equities analysts have issued reports on the company. Canaccord Genuity Group cut their price target on DraftKings from $40.00 to $30.00 and set a “buy” rating on the stock in a report on Monday. Moffett Nathanson reaffirmed a “neutral” rating and issued a $22.00 price target on shares of DraftKings in a research note on Thursday, October 22nd. Bank of America reaffirmed a “buy” rating on shares of DraftKings in a research note on Friday, November 6th. Wolfe Research began coverage on DraftKings in a research note on Wednesday, September 2nd. They issued an “outperform” rating and a $40.00 price objective for the company. Finally, Mizuho reduced their price target on shares of DraftKings from $45.00 to $35.00 and set an “outperform” rating for the company in a research report on Monday. One research analyst has rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating, ten have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $27.61.

DraftKings Company Profile

DraftKings Inc. is a digital sports and entertainment company founded in 2012. It began as a daily fantasy sports platform and has since expanded into online sports betting and gaming. The company offers daily fantasy contests, a sportsbook and online casino products, including games such as slots and table games. Its services are available in a range of U.S. jurisdictions and in Ontario, Canada, where permitted by local regulations. DraftKings is headquartered in Boston, Massachusetts. Co-founder Jason Robins serves as the company’s chief executive officer.