Susquehanna Issues Pessimistic Forecast for DraftKings (NASDAQ:DKNG) Stock Price

DraftKings (NASDAQ:DKNG) had its target price cut by research analysts at Susquehanna from $56.00 to $54.00 in a research note issued to investors on Wednesday,Benzinga reports. The firm presently has a “positive” rating on the stock. Susquehanna’s price target suggests a potential upside of 40.66% from the stock’s current price.

Several other equities research analysts have also recently commented on DKNG. Mizuho boosted their target price on DraftKings from $54.00 to $62.00 and gave the stock an “outperform” rating in a report on Friday, October 18th. BMO Capital Markets restated an “outperform” rating and set a $48.00 price objective on shares of DraftKings in a research report on Wednesday, October 16th. Benchmark reiterated a “buy” rating and issued a $44.00 target price on shares of DraftKings in a report on Tuesday. Wells Fargo & Company lifted their price target on shares of DraftKings from $47.00 to $52.00 and gave the stock an “overweight” rating in a research report on Thursday, October 17th. Finally, BNP Paribas upgraded DraftKings from an “underperform” rating to a “neutral” rating and set a $35.00 price objective for the company in a research report on Tuesday, September 10th. Three research analysts have rated the stock with a hold rating and twenty-three have given a buy rating to the company. According to MarketBeat, DraftKings currently has an average rating of “Moderate Buy” and an average price target of $51.08.

DraftKings Stock Performance

Shares of NASDAQ DKNG traded up $1.03 during midday trading on Wednesday, hitting $38.39. The company’s stock had a trading volume of 3,040,859 shares, compared to its average volume of 6,826,161. The company has a debt-to-equity ratio of 1.17, a quick ratio of 1.00 and a current ratio of 1.00. DraftKings has a 1-year low of $28.69 and a 1-year high of $49.57. The firm’s fifty day moving average price is $40.32 and its 200-day moving average price is $37.90. The firm has a market cap of $33.81 billion, a P/E ratio of -43.62 and a beta of 1.90.

DraftKings (NASDAQ:DKNG) last posted its earnings results on Thursday, November 7th. The company reported ($0.60) EPS for the quarter, missing the consensus estimate of ($0.42) by ($0.18). DraftKings had a negative net margin of 9.06% and a negative return on equity of 41.23%. The company had revenue of $1.10 billion for the quarter, compared to the consensus estimate of $1.12 billion. On average, sell-side analysts forecast that DraftKings will post -0.79 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Paul Liberman sold 88,441 shares of the firm’s stock in a transaction on Friday, October 25th. The stock was sold at an average price of $36.41, for a total transaction of $3,220,136.81. Following the completion of the sale, the insider now directly owns 1,923,483 shares of the company’s stock, valued at $70,034,016.03. This trade represents a 4.40 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider R Stanton Dodge sold 228,496 shares of the business’s stock in a transaction on Monday, December 9th. The stock was sold at an average price of $42.74, for a total value of $9,765,919.04. Following the completion of the transaction, the insider now directly owns 541,884 shares in the company, valued at approximately $23,160,122.16. This represents a 29.66 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 852,183 shares of company stock valued at $33,503,025 in the last three months. Company insiders own 51.19% of the company’s stock.

Institutional Trading of DraftKings

A number of large investors have recently made changes to their positions in the company. Alta Advisers Ltd bought a new stake in DraftKings during the second quarter worth about $38,000. Redwood Wealth Management Group LLC bought a new stake in shares of DraftKings during the 2nd quarter worth approximately $39,000. Delos Wealth Advisors LLC acquired a new stake in shares of DraftKings in the 3rd quarter valued at approximately $43,000. V Square Quantitative Management LLC bought a new position in shares of DraftKings in the third quarter valued at $46,000. Finally, Creative Financial Designs Inc. ADV increased its holdings in DraftKings by 36.8% during the third quarter. Creative Financial Designs Inc. ADV now owns 1,190 shares of the company’s stock worth $47,000 after buying an additional 320 shares during the last quarter. 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.