DraftKings (NASDAQ:DKNG) Stock Price Down 5.5% – What’s Next?

Shares of DraftKings Inc. (NASDAQ:DKNG) fell 5.5% during trading on Tuesday . The company traded as low as $38.44 and last traded at $38.29. 7,185,981 shares were traded during trading, a decline of 32% from the average session volume of 10,495,766 shares. The stock had previously closed at $40.52.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on DKNG. TD Cowen cut their price target on shares of DraftKings from $55.00 to $51.00 and set a “buy” rating for the company in a report on Tuesday, February 4th. Benchmark lifted their target price on DraftKings from $44.00 to $51.00 and gave the company a “buy” rating in a research report on Monday, March 10th. Argus set a $60.00 price target on DraftKings in a research note on Tuesday, February 18th. Cowen reissued a “buy” rating on shares of DraftKings in a research report on Tuesday, February 4th. Finally, Needham & Company LLC set a $65.00 target price on shares of DraftKings in a research report on Tuesday, February 18th. Three equities research analysts have rated the stock with a hold rating and twenty-five have issued a buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $54.44.

DraftKings Price Performance

The stock has a market capitalization of $18.15 billion, a price-to-earnings ratio of -34.94, a P/E/G ratio of 1.43 and a beta of 2.07. The company has a quick ratio of 1.00, a current ratio of 0.93 and a debt-to-equity ratio of 1.24. The stock has a fifty day moving average of $42.14 and a 200-day moving average of $40.35.

DraftKings (NASDAQ:DKNG) last issued its earnings results on Thursday, February 13th. The company reported ($0.28) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.07 by ($0.35). DraftKings had a negative net margin of 10.64% and a negative return on equity of 48.13%. On average, equities research analysts predict that DraftKings Inc. will post 0.64 EPS for the current fiscal year.

Insider Activity

In related news, Director Jocelyn Moore sold 3,420 shares of the stock in a transaction on Thursday, March 6th. The shares were sold at an average price of $42.00, for a total transaction of $143,640.00. Following the completion of the sale, the director now owns 1,612 shares in the company, valued at $67,704. This represents a 67.97 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider R Stanton Dodge sold 52,777 shares of DraftKings stock in a transaction on Monday, March 17th. The shares were sold at an average price of $39.00, for a total transaction of $2,058,303.00. Following the completion of the transaction, the insider now owns 653,843 shares in the company, valued at approximately $25,499,877. This represents a 7.47 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 2,131,871 shares of company stock valued at $92,171,123. Insiders own 51.19% of the company’s stock.

Hedge Funds Weigh In On DraftKings

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Raiffeisen Bank International AG acquired a new stake in DraftKings during the 4th quarter worth approximately $25,000. Stonebridge Financial Group LLC acquired a new stake in shares of DraftKings during the fourth quarter worth $28,000. Point72 Asia Singapore Pte. Ltd. acquired a new position in DraftKings in the 4th quarter valued at $28,000. Synergy Asset Management LLC purchased a new position in DraftKings during the 4th quarter worth $30,000. Finally, Synergy Investment Management LLC acquired a new stake in shares of DraftKings in the 4th quarter worth $37,000. Hedge funds and other institutional investors 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.