DraftKings (NASDAQ:DKNG) Trading Down 5.2% – Time to Sell?

DraftKings Inc. (NASDAQ:DKNG) dropped 5.2% on Tuesday . The company traded as low as $51.27 and last traded at $50.72. Approximately 5,697,972 shares were traded during mid-day trading, a decline of 39% from the average daily volume of 9,283,876 shares. The stock had previously closed at $53.49.

Analysts Set New Price Targets

A number of analysts have recently weighed in on the company. JMP Securities reissued a “market outperform” rating and set a $50.00 price objective on shares of DraftKings in a research note on Friday, February 14th. Macquarie raised their price target on DraftKings from $50.00 to $51.00 and gave the stock an “outperform” rating in a research note on Monday, November 11th. Wells Fargo & Company upped their price objective on shares of DraftKings from $53.00 to $60.00 and gave the stock an “overweight” rating in a report on Tuesday. Barclays raised their target price on shares of DraftKings from $50.00 to $60.00 and gave the stock an “overweight” rating in a research report on Tuesday. Finally, Needham & Company LLC reissued a “buy” rating and issued a $60.00 price target on shares of DraftKings in a research note on Friday, February 14th. Three investment analysts have rated the stock with a hold rating and twenty-four have issued a buy rating to the stock. Based on data from MarketBeat, DraftKings presently has a consensus rating of “Moderate Buy” and a consensus price target of $53.69.

DraftKings Price Performance

The stock has a market capitalization of $24.22 billion, a PE ratio of -46.64, a PEG ratio of 2.06 and a beta of 1.93. The firm’s fifty day moving average price is $41.14 and its two-hundred day moving average price is $39.11. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 1.17.

DraftKings (NASDAQ:DKNG) last announced its earnings results on Thursday, February 13th. The company reported ($0.28) earnings per share for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.35). DraftKings had a negative net margin of 10.64% and a negative return on equity of 47.48%. On average, equities analysts predict that DraftKings Inc. will post 0.46 earnings per share for the current year.

Insider Buying and Selling

In related news, insider R Stanton Dodge sold 228,496 shares of the business’s stock in a transaction that occurred on Monday, December 9th. The stock was sold at an average price of $42.74, for a total transaction of $9,765,919.04. Following the completion of the transaction, the insider now directly owns 541,884 shares in the company, valued at approximately $23,160,122.16. The trade was a 29.66 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Paul Liberman sold 532,095 shares of DraftKings stock in a transaction that occurred on Thursday, December 26th. The shares were sold at an average price of $38.30, for a total transaction of $20,379,238.50. Following the transaction, the insider now directly owns 68,654 shares in the company, valued at $2,629,448.20. This represents a 88.57 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 1,160,591 shares of company stock valued at $46,945,158. 51.19% of the stock is owned by insiders.

Institutional Trading of DraftKings

A number of hedge funds and other institutional investors have recently modified their holdings of DKNG. Raiffeisen Bank International AG bought a new position in DraftKings in the 4th quarter worth $25,000. Stonebridge Financial Group LLC bought a new position in shares of DraftKings in the fourth quarter worth about $28,000. Point72 Asia Singapore Pte. Ltd. purchased a new stake in shares of DraftKings during the fourth quarter worth about $28,000. Synergy Asset Management LLC bought a new stake in DraftKings during the 4th quarter valued at approximately $30,000. Finally, Synergy Investment Management LLC purchased a new position in DraftKings in the 4th quarter worth approximately $37,000. 37.70% of the stock is 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.