Cfra Research Upgrades DraftKings (NASDAQ:DKNG) to “Moderate Buy”

DraftKings (NASDAQ:DKNG) was upgraded by equities research analysts at Cfra Research to a “moderate buy” rating in a research report issued on Monday,Zacks.com reports.

DKNG has been the subject of several other reports. Wells Fargo & Company increased their price objective on DraftKings from $53.00 to $60.00 and gave the stock an “overweight” rating in a research note on Tuesday, February 18th. BTIG Research set a $59.00 target price on DraftKings in a report on Monday, February 3rd. Stifel Nicolaus upped their price objective on shares of DraftKings from $48.00 to $57.00 and gave the stock a “buy” rating in a report on Tuesday, February 18th. Barclays raised their target price on DraftKings from $50.00 to $60.00 and gave the company an “overweight” rating in a report on Tuesday, February 18th. Finally, Susquehanna dropped their price objective on shares of DraftKings from $56.00 to $54.00 and set a “positive” rating on the stock in a report on Wednesday, January 8th. Three analysts have rated the stock with a hold rating and twenty-five have assigned a buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $55.27.

DraftKings Stock Performance

Shares of DKNG stock opened at $33.62 on Monday. DraftKings has a 12-month low of $28.69 and a 12-month high of $53.61. The company has a debt-to-equity ratio of 1.24, a current ratio of 0.93 and a quick ratio of 1.00. The firm has a market capitalization of $16.81 billion, a price-to-earnings ratio of -31.72, a price-to-earnings-growth ratio of 1.43 and a beta of 2.16. The business has a 50 day simple moving average of $39.59 and a 200 day simple moving average of $39.75.

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

Insider Activity

In other news, insider Jason Robins sold 666,651 shares of DraftKings stock in a transaction dated Tuesday, February 25th. The shares were sold at an average price of $42.42, for a total transaction of $28,279,335.42. Following the sale, the insider now owns 3,336,195 shares of the company’s stock, valued at approximately $141,521,391.90. The trade was a 16.65 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Paul Liberman sold 643,654 shares of DraftKings stock in a transaction that occurred on Tuesday, March 25th. The shares were sold at an average price of $38.95, for a total value of $25,070,323.30. Following the sale, the insider now directly owns 682,764 shares in the company, valued at approximately $26,593,657.80. The trade was a 48.53 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 2,575,525 shares of company stock valued at $109,441,446. Insiders own 51.19% of the company’s stock.

Institutional Trading of DraftKings

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Janus Henderson Group PLC raised its holdings in DraftKings by 31,346.8% in the fourth quarter. Janus Henderson Group PLC now owns 9,381,853 shares of the company’s stock worth $349,005,000 after buying an additional 9,352,019 shares during the last quarter. Norges Bank purchased a new position in DraftKings in the 4th quarter worth approximately $276,328,000. FMR LLC raised its holdings in DraftKings by 110.6% in the 4th quarter. FMR LLC now owns 13,617,448 shares of the company’s stock worth $506,569,000 after acquiring an additional 7,150,382 shares during the last quarter. Baillie Gifford & Co. bought a new position in DraftKings in the 4th quarter valued at approximately $246,765,000. Finally, Eminence Capital LP purchased a new stake in DraftKings during the 4th quarter valued at $65,255,000. 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.