DraftKings (NASDAQ:DKNG) Sees Strong Trading Volume – Still a Buy?

DraftKings Inc. (NASDAQ:DKNG) shares saw an uptick in trading volume on Friday . 7,033,961 shares were traded during mid-day trading, a decline of 31% from the previous session’s volume of 10,250,726 shares.The stock last traded at $38.90 and had previously closed at $38.98.

Analyst Ratings Changes

Several research analysts have recently weighed in on DKNG shares. UBS Group boosted their price objective on shares of DraftKings from $56.00 to $58.00 and gave the stock a “buy” rating in a research note on Wednesday, September 4th. Wells Fargo & Company upped their price objective on DraftKings from $47.00 to $52.00 and gave the company an “overweight” rating in a research note on Thursday, October 17th. JMP Securities reaffirmed a “market outperform” rating and issued a $51.00 price objective on shares of DraftKings in a research report on Monday, October 14th. JPMorgan Chase & Co. boosted their target price on DraftKings from $48.00 to $54.00 and gave the stock an “overweight” rating in a report on Thursday, September 26th. Finally, Mizuho lifted their price objective on shares of DraftKings from $54.00 to $62.00 and gave the stock an “outperform” rating in a research report on Friday, October 18th. Three investment analysts have rated the stock with a hold rating and twenty-four have given a buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $50.22.

DraftKings Stock Performance

The company has a current ratio of 1.11, a quick ratio of 1.11 and a debt-to-equity ratio of 0.97. The company has a market cap of $35.11 billion, a P/E ratio of -43.80 and a beta of 1.82. The company has a 50 day moving average price of $37.45 and a 200-day moving average price of $37.94.

DraftKings (NASDAQ:DKNG) last posted its quarterly earnings results on Thursday, November 7th. The company reported ($0.60) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.42) by ($0.18). The company had revenue of $1.10 billion during the quarter, compared to analyst estimates of $1.12 billion. DraftKings had a negative net margin of 9.45% and a negative return on equity of 43.11%. On average, equities analysts expect that DraftKings Inc. will post -0.31 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Jason Robins sold 200,000 shares of the business’s stock in a transaction on Wednesday, August 21st. The stock was sold at an average price of $35.25, for a total transaction of $7,050,000.00. Following the sale, the insider now owns 2,678,082 shares in the company, valued at $94,402,390.50. The trade was a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. In related news, insider Paul Liberman sold 88,441 shares of the stock in a transaction on Friday, October 25th. The stock was sold at an average price of $36.41, for a total value of $3,220,136.81. Following the completion of the sale, the insider now directly owns 1,923,483 shares in the company, valued at $70,034,016.03. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Jason Robins sold 200,000 shares of the firm’s stock in a transaction on Wednesday, August 21st. The stock was sold at an average price of $35.25, for a total value of $7,050,000.00. Following the transaction, the insider now directly owns 2,678,082 shares of the company’s stock, valued at approximately $94,402,390.50. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 1,020,536 shares of company stock worth $39,966,465. Insiders own 48.94% of the company’s stock.

Institutional Investors Weigh In On DraftKings

Institutional investors and hedge funds have recently made changes to their positions in the stock. LRI Investments LLC bought a new position in DraftKings during the 1st quarter worth approximately $31,000. Alta Advisers Ltd bought a new position in DraftKings during the second quarter worth $38,000. Redwood Wealth Management Group LLC acquired a new position in DraftKings in the second quarter valued at $39,000. Larson Financial Group LLC boosted its position in DraftKings by 166.0% during the first quarter. Larson Financial Group LLC now owns 1,117 shares of the company’s stock valued at $51,000 after acquiring an additional 697 shares during the last quarter. Finally, V Square Quantitative Management LLC acquired a new stake in DraftKings during the 3rd quarter worth about $46,000. Institutional investors and hedge funds own 37.70% of the company’s stock.

About DraftKings

DraftKings Inc operates as a digital sports entertainment and gaming company in the United States and internationally. It provides online sports betting and casino, daily fantasy sports, media, and other consumer products, as well as retails sportsbooks. The company also engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators.