DraftKings Inc. (NASDAQ:DKNG) Short Interest Up 27.2% in May

DraftKings Inc. (NASDAQ:DKNG) saw a significant increase in short interest in the month of May. As of May 31st, there was short interest totalling 21,320,000 shares, an increase of 27.2% from the May 15th total of 16,760,000 shares. Based on an average daily volume of 10,650,000 shares, the short-interest ratio is presently 2.0 days.

DraftKings Stock Up 7.8 %

DKNG stock traded up $3.04 during mid-day trading on Monday, reaching $41.95. 17,042,410 shares of the company traded hands, compared to its average volume of 11,412,199. The stock has a market cap of $36.46 billion, a price-to-earnings ratio of -35.55 and a beta of 1.81. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 1.51. DraftKings has a fifty-two week low of $24.16 and a fifty-two week high of $49.57. The firm’s 50 day moving average price is $41.29 and its 200 day moving average price is $40.38.

DraftKings (NASDAQ:DKNG) last released its quarterly earnings results on Thursday, May 2nd. The company reported ($0.30) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.28) by ($0.02). DraftKings had a negative net margin of 13.45% and a negative return on equity of 62.74%. The company had revenue of $1.18 billion for the quarter, compared to analyst estimates of $1.12 billion. During the same quarter last year, the firm posted ($0.87) EPS. DraftKings’s revenue for the quarter was up 52.7% on a year-over-year basis. As a group, equities research analysts predict that DraftKings will post -0.21 EPS for the current fiscal year.

Analyst Ratings Changes

A number of equities research analysts have weighed in on DKNG shares. JMP Securities reaffirmed a “market outperform” rating and issued a $52.00 target price on shares of DraftKings in a report on Monday, March 25th. Moffett Nathanson raised their target price on DraftKings from $52.00 to $55.00 and gave the company a “buy” rating in a report on Thursday, March 28th. BTIG Research increased their price target on DraftKings from $53.00 to $55.00 and gave the company a “buy” rating in a research note on Monday, May 6th. Susquehanna dropped their price target on DraftKings from $56.00 to $49.00 and set a “positive” rating for the company in a research note on Wednesday, June 5th. Finally, Stifel Nicolaus dropped their price target on DraftKings from $51.00 to $50.00 and set a “buy” rating for the company in a research note on Wednesday, May 29th. Two investment analysts have rated the stock with a sell rating, two have assigned a hold rating and twenty-five have issued a buy rating to the company’s stock. Based on data from MarketBeat, DraftKings has a consensus rating of “Moderate Buy” and a consensus target price of $49.00.

Insider Transactions at DraftKings

In other news, Director Jocelyn Moore sold 1,450 shares of the stock in a transaction that occurred on Wednesday, June 5th. The stock was sold at an average price of $35.92, for a total transaction of $52,084.00. Following the transaction, the director now owns 6,814 shares in the company, valued at $244,758.88. The sale was disclosed in a filing with the SEC, which is available through the SEC website. In related news, Director Jocelyn Moore sold 1,450 shares of the stock in a transaction that occurred on Wednesday, June 5th. The stock was sold at an average price of $35.92, for a total transaction of $52,084.00. Following the sale, the director now owns 6,814 shares of the company’s stock, valued at $244,758.88. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Harry Sloan sold 250,000 shares of the stock in a transaction that occurred on Friday, June 14th. The stock was sold at an average price of $38.15, for a total value of $9,537,500.00. Following the sale, the director now directly owns 250,000 shares in the company, valued at approximately $9,537,500. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 851,450 shares of company stock worth $35,023,584. Company insiders own 48.94% of the company’s stock.

Institutional Investors Weigh In On DraftKings

A number of hedge funds have recently modified their holdings of the stock. Winthrop Advisory Group LLC raised its holdings in DraftKings by 2.4% during the 1st quarter. Winthrop Advisory Group LLC now owns 10,452 shares of the company’s stock valued at $475,000 after acquiring an additional 244 shares during the period. ST Germain D J Co. Inc. raised its holdings in DraftKings by 26.3% during the 1st quarter. ST Germain D J Co. Inc. now owns 1,200 shares of the company’s stock valued at $54,000 after acquiring an additional 250 shares during the period. Sfmg LLC raised its holdings in DraftKings by 3.9% during the 1st quarter. Sfmg LLC now owns 8,140 shares of the company’s stock valued at $370,000 after acquiring an additional 306 shares during the period. Fifth Third Bancorp raised its holdings in DraftKings by 8.3% during the 4th quarter. Fifth Third Bancorp now owns 4,331 shares of the company’s stock valued at $153,000 after acquiring an additional 331 shares during the period. Finally, Cornerstone Wealth Management LLC raised its holdings in DraftKings by 4.4% during the 4th quarter. Cornerstone Wealth Management LLC now owns 8,082 shares of the company’s stock valued at $285,000 after acquiring an additional 341 shares during the period. 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.