TD Cowen Forecasts Strong Price Appreciation for DraftKings (NASDAQ:DKNG) Stock

DraftKings (NASDAQ:DKNG) had its price objective increased by equities researchers at TD Cowen from $50.00 to $55.00 in a research note issued on Tuesday,Benzinga reports. The brokerage currently has a “buy” rating on the stock. TD Cowen’s price objective would suggest a potential upside of 31.33% from the company’s previous close.

Other analysts have also recently issued reports about the company. BNP Paribas upgraded DraftKings from an “underperform” rating to a “neutral” rating and set a $35.00 price target on the stock in a research report on Tuesday, September 10th. Macquarie increased their target price on shares of DraftKings from $50.00 to $51.00 and gave the stock an “outperform” rating in a research report on Monday. Needham & Company LLC reissued a “buy” rating and set a $60.00 price target on shares of DraftKings in a report on Friday, November 8th. Mizuho raised their price objective on shares of DraftKings from $54.00 to $62.00 and gave the stock an “outperform” rating in a report on Friday, October 18th. Finally, Stifel Nicolaus reissued a “buy” rating and issued a $48.00 target price (down from $50.00) on shares of DraftKings in a report on Monday, August 5th. Three investment analysts have rated the stock with a hold rating and twenty-five have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $50.64.

DraftKings Trading Up 0.4 %

Shares of DraftKings stock opened at $41.88 on Tuesday. The company’s fifty day moving average price is $38.00 and its two-hundred day moving average price is $37.91. The firm has a market capitalization of $36.79 billion, a PE ratio of -47.59 and a beta of 1.82. DraftKings has a 52-week low of $28.69 and a 52-week high of $49.57. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.00 and a quick ratio of 1.11.

DraftKings (NASDAQ:DKNG) last posted its quarterly earnings results on Thursday, November 7th. The company reported ($0.60) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.42) by ($0.18). The business had revenue of $1.10 billion during the quarter, compared to analyst estimates of $1.12 billion. DraftKings had a negative return on equity of 41.23% and a negative net margin of 9.06%. On average, analysts expect that DraftKings will post -0.41 EPS for the current year.

Insider Activity at DraftKings

In other DraftKings news, insider Paul Liberman sold 643,654 shares of the firm’s stock in a transaction dated Wednesday, September 25th. The stock was sold at an average price of $41.24, for a total transaction of $26,544,290.96. Following the transaction, the insider now owns 137,308 shares in the company, valued at approximately $5,662,581.92. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. In related news, insider Paul Liberman sold 643,654 shares of the stock in a transaction that occurred on Wednesday, September 25th. The shares were sold at an average price of $41.24, for a total value of $26,544,290.96. Following the sale, the insider now directly owns 137,308 shares in the company, valued at $5,662,581.92. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Jason Robins sold 200,000 shares of DraftKings stock in a transaction that occurred on Wednesday, August 21st. The stock was sold at an average price of $35.25, for a total transaction of $7,050,000.00. Following the transaction, the insider now directly owns 2,678,082 shares in the company, valued at $94,402,390.50. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 1,020,536 shares of company stock worth $39,966,465. 51.19% of the stock is owned by insiders.

Institutional Trading of DraftKings

A number of large investors have recently made changes to their positions in DKNG. Soros Capital Management LLC lifted its holdings in DraftKings by 40.3% during the third quarter. Soros Capital Management LLC now owns 11,643 shares of the company’s stock worth $456,000 after acquiring an additional 3,345 shares in the last quarter. Townsquare Capital LLC raised its position in shares of DraftKings by 4.3% during the third quarter. Townsquare Capital LLC now owns 12,126 shares of the company’s stock worth $475,000 after purchasing an additional 501 shares during the period. Brooklyn Investment Group bought a new position in shares of DraftKings during the 3rd quarter valued at about $143,000. D.A. Davidson & CO. grew its position in shares of DraftKings by 2.4% in the 3rd quarter. D.A. Davidson & CO. now owns 23,972 shares of the company’s stock valued at $940,000 after purchasing an additional 569 shares during the period. Finally, FMR LLC increased its stake in DraftKings by 14.7% during the 3rd quarter. FMR LLC now owns 6,467,066 shares of the company’s stock worth $253,509,000 after purchasing an additional 826,626 shares in 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.