Bank of America Trims DraftKings (NASDAQ:DKNG) Target Price to $50.00

DraftKings (NASDAQ:DKNG) had its target price cut by Bank of America from $54.00 to $50.00 in a research report released on Monday morning, Benzinga reports. They currently have a buy rating on the stock.

Several other research firms have also commented on DKNG. Jefferies Financial Group upped their price target on shares of DraftKings from $52.00 to $54.00 and gave the company a buy rating in a report on Monday, May 6th. Berenberg Bank upgraded shares of DraftKings to a hold rating in a research report on Friday, May 31st. BMO Capital Markets upped their price objective on shares of DraftKings from $51.00 to $54.00 and gave the stock an outperform rating in a research report on Monday, May 6th. Barclays decreased their price objective on shares of DraftKings from $54.00 to $53.00 and set an overweight rating for the company in a research report on Wednesday, July 10th. Finally, Stifel Nicolaus reiterated a buy rating and issued a $50.00 price objective on shares of DraftKings in a research report on Friday, July 5th. Two research analysts have rated the stock with a sell rating, two have issued a hold rating and twenty-six have issued a buy rating to the company. According to data from MarketBeat, DraftKings presently has a consensus rating of Moderate Buy and a consensus target price of $49.67.

DraftKings Price Performance

NASDAQ:DKNG opened at $35.78 on Monday. DraftKings has a one year low of $25.41 and a one year high of $49.57. The company has a debt-to-equity ratio of 1.51, a quick ratio of 1.34 and a current ratio of 1.34. The firm has a market cap of $31.10 billion, a price-to-earnings ratio of -30.32 and a beta of 1.81. The firm’s fifty day moving average is $38.58 and its two-hundred day moving average is $40.85.

DraftKings (NASDAQ:DKNG) last posted its quarterly earnings results on Thursday, May 2nd. The company reported ($0.30) EPS for the quarter, missing the consensus estimate 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 business had revenue of $1.18 billion during the quarter, compared to analysts’ expectations of $1.12 billion. During the same period in the previous year, the company posted ($0.87) earnings per share. DraftKings’s revenue for the quarter was up 52.7% compared to the same quarter last year. Research analysts expect that DraftKings will post -0.29 EPS for the current year.

Insider Buying and Selling

In other news, insider Paul Liberman sold 668,890 shares of the stock in a transaction that occurred on Tuesday, June 25th. The shares were sold at an average price of $38.83, for a total value of $25,972,998.70. Following the completion of the sale, the insider now owns 205,962 shares of the company’s stock, valued at approximately $7,997,504.46. The transaction was disclosed in a filing with the SEC, which is accessible through this link. In related news, insider Paul Liberman sold 668,890 shares of the company’s stock in a transaction that occurred on Tuesday, June 25th. The stock was sold at an average price of $38.83, for a total value of $25,972,998.70. Following the transaction, the insider now directly owns 205,962 shares in the company, valued at $7,997,504.46. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Jason Robins sold 200,000 shares of the firm’s stock in a transaction on Wednesday, May 8th. The stock was sold at an average price of $42.67, for a total value of $8,534,000.00. Following the sale, the insider now directly owns 2,849,215 shares of the company’s stock, valued at approximately $121,576,004.05. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 1,383,546 shares of company stock worth $55,279,617. Insiders own 51.19% of the company’s stock.

Institutional Investors Weigh In On DraftKings

A number of institutional investors have recently made changes to their positions in DKNG. Highlander Capital Management LLC lifted its holdings in shares of DraftKings by 180.0% in the 4th quarter. Highlander Capital Management LLC now owns 700 shares of the company’s stock worth $25,000 after acquiring an additional 450 shares during the last quarter. Transcendent Capital Group LLC acquired a new position in shares of DraftKings in the fourth quarter worth $26,000. Montag A & Associates Inc. acquired a new position in shares of DraftKings in the fourth quarter worth $29,000. LRI Investments LLC acquired a new position in shares of DraftKings in the first quarter worth $31,000. Finally, LifeSteps Financial Inc. acquired a new position in shares of DraftKings in the first quarter worth $33,000. 37.70% of the stock is currently owned by institutional investors and hedge funds.

DraftKings Company Profile

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.