DraftKings (NASDAQ:DKNG) Reaches New 1-Year Low Following Analyst Downgrade

DraftKings Inc. (NASDAQ:DKNG)’s stock price reached a new 52-week low during trading on Friday after Truist Securities lowered their price target on the stock from $50.00 to $30.00. The company traded as low as $22.95 and last traded at $23.15, with a volume of 577292 shares changing hands. The stock had previously closed at $24.24.

Other research analysts also recently issued research reports about the stock. Zacks Investment Research upgraded shares of DraftKings from a “sell” rating to a “hold” rating in a research report on Wednesday, January 5th. Craig Hallum lowered their price objective on shares of DraftKings from $70.00 to $51.00 in a research report on Tuesday, January 4th. Truist lowered their price objective on shares of DraftKings from $50.00 to $30.00 in a research report on Thursday. Credit Suisse Group reiterated a “buy” rating and issued a $85.00 price target on shares of DraftKings in a research report on Wednesday, September 15th. Finally, Deutsche Bank Aktiengesellschaft reduced their price objective on shares of DraftKings from $46.00 to $27.00 in a research note on Tuesday. One investment analyst has rated the stock with a sell rating, eleven have given a hold rating and seventeen have given a buy rating to the company. According to MarketBeat, the company has an average rating of “Buy” and an average price target of $58.71.

In related news, insider Jason Robins sold 333,334 shares of the firm’s stock in a transaction dated Thursday, October 21st. The shares were sold at an average price of $49.33, for a total value of $16,443,366.22. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Steven Joseph Murray sold 30,707 shares of the stock in a transaction that occurred on Tuesday, December 14th. The shares were sold at an average price of $27.92, for a total transaction of $857,339.44. The disclosure for this sale can be found here. Insiders sold a total of 745,525 shares of company stock worth $34,413,940 over the last ninety days. Insiders own 62.00% of the company’s stock.

Hedge funds and other institutional investors have recently made changes to their positions in the company. Northern Oak Wealth Management Inc. increased its position in DraftKings by 57.1% in the second quarter. Northern Oak Wealth Management Inc. now owns 550 shares of the company’s stock worth $29,000 after buying an additional 200 shares during the period. Asio Capital LLC grew its holdings in DraftKings by 3.0% during the third quarter. Asio Capital LLC now owns 7,850 shares of the company’s stock worth $378,000 after acquiring an additional 230 shares during the period. Oxinas Partners Wealth Management LLC grew its holdings in DraftKings by 5.0% during the third quarter. Oxinas Partners Wealth Management LLC now owns 4,929 shares of the company’s stock worth $237,000 after acquiring an additional 235 shares during the period. Prestige Wealth Management Group LLC boosted its position in shares of DraftKings by 4.7% in the 2nd quarter. Prestige Wealth Management Group LLC now owns 5,495 shares of the company’s stock valued at $287,000 after purchasing an additional 247 shares during the period. Finally, Evolution Wealth Advisors LLC boosted its position in shares of DraftKings by 16.7% in the 3rd quarter. Evolution Wealth Advisors LLC now owns 1,750 shares of the company’s stock valued at $84,000 after purchasing an additional 250 shares during the period. 62.97% of the stock is currently owned by institutional investors and hedge funds.

The firm has a market cap of $9.43 billion, a price-to-earnings ratio of -6.32 and a beta of 1.91. The company has a current ratio of 3.18, a quick ratio of 3.18 and a debt-to-equity ratio of 0.68. The stock has a 50-day moving average of $31.61 and a two-hundred day moving average of $44.75.

DraftKings (NASDAQ:DKNG) last announced its quarterly earnings data on Friday, November 5th. The company reported ($1.35) EPS for the quarter, missing the Zacks’ consensus estimate of ($1.11) by ($0.24). DraftKings had a negative return on equity of 65.15% and a negative net margin of 127.81%. The business had revenue of $212.82 million for the quarter, compared to analyst estimates of $224.86 million. During the same quarter in the previous year, the business posted ($0.98) earnings per share. Sell-side analysts expect that DraftKings Inc. will post -3.62 EPS for the current fiscal year.

DraftKings Company Profile (NASDAQ:DKNG)

DraftKings Inc operates as a digital sports entertainment and gaming company in the United States. It operates through two segments, Business-to-Consumer and Business-to-Business. The company provides users with daily sports, sports betting, and iGaming opportunities. It is also involved in the design, development, and licensing of sports betting and casino gaming platform software for online and retail sportsbook, and casino gaming products.

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