JMP Securities Has Lowered Expectations for DraftKings (NASDAQ:DKNG) Stock Price

DraftKings (NASDAQ:DKNG) had its price target reduced by equities researchers at JMP Securities from $52.00 to $50.00 in a research report issued on Monday,Benzinga reports. The brokerage currently has a “market outperform” rating on the stock. JMP Securities’ price objective suggests a potential upside of 33.83% from the company’s previous close.

DKNG has been the topic of a number of other research reports. Mizuho increased their price objective on DraftKings from $54.00 to $62.00 and gave the company an “outperform” rating in a research note on Friday, October 18th. Benchmark reaffirmed a “buy” rating and set a $44.00 price target on shares of DraftKings in a research note on Monday, October 7th. Needham & Company LLC reissued a “buy” rating and issued a $60.00 price objective on shares of DraftKings in a research report on Friday, November 8th. JPMorgan Chase & Co. upped their price objective on shares of DraftKings from $47.00 to $53.00 and gave the company an “overweight” rating in a research note on Friday, December 13th. Finally, Morgan Stanley lifted their target price on shares of DraftKings from $47.00 to $48.00 and gave the stock an “overweight” rating in a research note on Tuesday, October 22nd. Three investment analysts have rated the stock with a hold rating and twenty-three have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $50.92.

DraftKings Price Performance

Shares of NASDAQ DKNG opened at $37.36 on Monday. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 1.17. The company’s 50-day moving average price is $40.32 and its 200 day moving average price is $37.90. DraftKings has a 52 week low of $28.69 and a 52 week high of $49.57. The stock has a market cap of $32.90 billion, a price-to-earnings ratio of -42.45 and a beta of 1.90.

DraftKings (NASDAQ:DKNG) last released its quarterly earnings results on Thursday, November 7th. The company reported ($0.60) EPS for the quarter, missing the consensus estimate of ($0.42) by ($0.18). DraftKings had a negative net margin of 9.06% and a negative return on equity of 41.23%. The business had revenue of $1.10 billion during the quarter, compared to analyst estimates of $1.12 billion. As a group, research analysts forecast that DraftKings will post -0.79 earnings per share for the current fiscal year.

Insider Activity at DraftKings

In other DraftKings news, insider Paul Liberman sold 88,441 shares of the business’s stock in a transaction on Friday, October 25th. The shares were sold at an average price of $36.41, for a total value of $3,220,136.81. Following the transaction, the insider now owns 1,923,483 shares in the company, valued at $70,034,016.03. The trade was a 4.40 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Jason Robins sold 3,151 shares of the firm’s stock in a transaction dated Thursday, November 21st. The shares were sold at an average price of $43.71, for a total value of $137,730.21. Following the sale, the insider now owns 2,631,033 shares of the company’s stock, valued at $115,002,452.43. This represents a 0.12 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 852,183 shares of company stock worth $33,503,025. 51.19% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On DraftKings

Institutional investors and hedge funds have recently made changes to their positions in the business. Diversified Trust Co increased its stake in shares of DraftKings by 16.7% in the fourth quarter. Diversified Trust Co now owns 61,607 shares of the company’s stock worth $2,292,000 after buying an additional 8,802 shares during the last quarter. Principal Financial Group Inc. increased its position in shares of DraftKings by 14.6% in the 3rd quarter. Principal Financial Group Inc. now owns 234,768 shares of the company’s stock worth $9,203,000 after purchasing an additional 29,991 shares during the last quarter. Oddo BHF Asset Management Sas acquired a new stake in shares of DraftKings in the 3rd quarter valued at about $1,191,000. Wilmington Savings Fund Society FSB bought a new position in shares of DraftKings during the third quarter worth about $304,000. Finally, Pine Valley Investments Ltd Liability Co grew its stake in DraftKings by 3.7% in the third quarter. Pine Valley Investments Ltd Liability Co now owns 6,924 shares of the company’s stock worth $271,000 after purchasing an additional 249 shares in the last quarter. 37.70% of the stock is currently owned by hedge funds and other institutional investors.

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.