DraftKings Target of Unusually Large Options Trading (NASDAQ:DKNG)

DraftKings Inc. (NASDAQ:DKNG) was the recipient of unusually large options trading on Thursday. Stock investors purchased 112,283 call options on the stock. This is an increase of 51% compared to the average volume of 74,115 call options.

DraftKings Stock Down 2.8 %

NASDAQ:DKNG traded down $1.05 during trading hours on Thursday, reaching $35.90. The company’s stock had a trading volume of 6,422,941 shares, compared to its average volume of 10,765,113. The company has a market capitalization of $31.21 billion, a P/E ratio of -31.69 and a beta of 1.81. DraftKings has a 12 month low of $25.41 and a 12 month 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 stock has a 50 day moving average price of $38.02 and a two-hundred day moving average price of $40.98.

DraftKings (NASDAQ:DKNG) last issued 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). The business had revenue of $1.18 billion for the quarter, compared to analyst estimates of $1.12 billion. DraftKings had a negative return on equity of 62.74% and a negative net margin of 13.45%. The business’s revenue for the quarter was up 52.7% on a year-over-year basis. During the same period in the previous year, the company posted ($0.87) earnings per share. Equities analysts predict that DraftKings will post -0.31 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several research analysts recently commented on the company. Oppenheimer dropped their price target on DraftKings from $60.00 to $58.00 and set an “outperform” rating for the company in a research report on Monday, July 1st. Susquehanna dropped their price target on DraftKings from $49.00 to $47.00 and set a “positive” rating for the company in a research report on Thursday. Barclays dropped their price target on DraftKings from $54.00 to $53.00 and set an “overweight” rating for the company in a research report on Wednesday, July 10th. Benchmark boosted their target price on DraftKings from $50.00 to $52.00 and gave the company a “buy” rating in a research report on Friday, May 3rd. Finally, Deutsche Bank Aktiengesellschaft boosted their target price on DraftKings from $34.00 to $35.00 and gave the company a “hold” rating in a research report on Monday, May 6th. Two analysts have rated the stock with a sell rating, two have assigned a hold rating and twenty-six have issued a buy rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $49.60.

Insider Transactions at DraftKings

In other news, insider Jason Robins sold 200,000 shares of DraftKings stock in a transaction dated 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 $121,576,004.05. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. In other news, Director Harry Sloan sold 250,000 shares of DraftKings stock in a transaction dated 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 of the company’s stock, valued at $9,537,500. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Jason Robins sold 200,000 shares of DraftKings stock in a transaction dated 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 completion of the transaction, the insider now 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 three months, insiders have sold 1,383,546 shares of company stock valued at $55,279,617. 51.19% of the stock is currently owned by insiders.

Hedge Funds Weigh In On DraftKings

A number of large investors have recently made changes to their positions in the business. Winthrop Advisory Group LLC increased its position in shares of DraftKings by 2.4% during the first quarter. Winthrop Advisory Group LLC now owns 10,452 shares of the company’s stock worth $475,000 after purchasing an additional 244 shares in the last quarter. ST Germain D J Co. Inc. increased its position in shares of DraftKings by 26.3% in 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. Hexagon Capital Partners LLC increased its position in shares of DraftKings by 21.0% in the 2nd quarter. Hexagon Capital Partners LLC now owns 1,651 shares of the company’s stock valued at $63,000 after acquiring an additional 286 shares during the period. Sfmg LLC increased its position in shares of DraftKings by 3.9% in 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. Finally, Brown Lisle Cummings Inc. increased its position in shares of DraftKings by 32.5% in the 2nd quarter. Brown Lisle Cummings Inc. now owns 1,325 shares of the company’s stock valued at $51,000 after acquiring an additional 325 shares during the period. 37.70% of the stock is owned by institutional investors and hedge funds.

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.