Needham & Company LLC Reiterates Buy Rating for DraftKings (NASDAQ:DKNG)

DraftKings (NASDAQ:DKNG)‘s stock had its “buy” rating restated by stock analysts at Needham & Company LLC in a note issued to investors on Wednesday, Benzinga reports. They presently have a $60.00 target price on the stock. Needham & Company LLC’s price objective would indicate a potential upside of 67.69% from the stock’s previous close.

DKNG has been the subject of a number of other reports. Wells Fargo & Company cut their price target on DraftKings from $54.00 to $53.00 and set an “overweight” rating for the company in a report on Tuesday, June 25th. Guggenheim reduced their price objective on shares of DraftKings from $53.00 to $52.00 and set a “buy” rating for the company in a report on Wednesday, June 26th. Susquehanna lowered their target price on shares of DraftKings from $56.00 to $49.00 and set a “positive” rating on the stock in a research note on Wednesday, June 5th. Truist Financial cut their price target on shares of DraftKings from $55.00 to $53.00 and set a “buy” rating for the company in a research note on Thursday, July 18th. Finally, Benchmark upped their price objective on DraftKings from $50.00 to $52.00 and gave the company a “buy” rating in a research note on Friday, May 3rd. Two investment analysts have rated the stock with a sell rating, two have given a hold rating and twenty-six have assigned a buy rating to the company. According to data from MarketBeat, DraftKings has a consensus rating of “Moderate Buy” and a consensus price target of $49.67.

DraftKings Stock Down 0.2 %

DKNG stock opened at $35.78 on Wednesday. DraftKings has a 1 year low of $25.41 and a 1 year high of $49.57. The company has a fifty day simple moving average of $38.58 and a 200 day simple moving average of $40.85. The firm has a market cap of $31.10 billion, a PE ratio of -30.32 and a beta of 1.81. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 1.51.

DraftKings (NASDAQ:DKNG) last released its quarterly earnings results on Thursday, May 2nd. The company reported ($0.30) EPS for the quarter, missing analysts’ consensus estimates of ($0.28) by ($0.02). The firm had revenue of $1.18 billion during the quarter, compared to the consensus estimate of $1.12 billion. DraftKings had a negative net margin of 13.45% and a negative return on equity of 62.74%. The company’s revenue for the quarter was up 52.7% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.87) EPS. Sell-side analysts anticipate that DraftKings will post -0.29 EPS for the current fiscal year.

Insider Transactions at DraftKings

In related news, insider Paul Liberman sold 63,206 shares of the firm’s stock in a transaction dated Monday, July 15th. The stock was sold at an average price of $39.00, for a total value of $2,465,034.00. Following the transaction, the insider now owns 1,716,406 shares in the company, valued at $66,939,834. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. In related news, insider Paul Liberman sold 63,206 shares of the stock in a transaction that occurred on Monday, July 15th. The shares were sold at an average price of $39.00, for a total value of $2,465,034.00. Following the transaction, the insider now directly owns 1,716,406 shares in the company, valued at $66,939,834. 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 DraftKings stock in a transaction on Friday, June 14th. The stock was sold at an average price of $38.15, for a total transaction of $9,537,500.00. Following the sale, the director now directly owns 250,000 shares of the company’s stock, valued at approximately $9,537,500. The disclosure for this sale can be found here. Insiders sold a total of 1,383,546 shares of company stock worth $55,279,617 over the last 90 days. 51.19% of the stock is owned by insiders.

Hedge Funds Weigh In On DraftKings

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its position in shares of DraftKings by 1.9% in the 1st quarter. Vanguard Group Inc. now owns 40,011,855 shares of the company’s stock valued at $1,816,938,000 after acquiring an additional 747,937 shares during the period. Norges Bank acquired a new stake in DraftKings in the fourth quarter worth $192,140,000. Massachusetts Financial Services Co. MA boosted its position in shares of DraftKings by 21.4% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 4,424,931 shares of the company’s stock worth $155,979,000 after purchasing an additional 781,058 shares in the last quarter. First Trust Advisors LP grew its holdings in shares of DraftKings by 148.2% in the 4th quarter. First Trust Advisors LP now owns 4,235,008 shares of the company’s stock valued at $149,284,000 after buying an additional 2,528,503 shares during the period. Finally, Lord Abbett & CO. LLC increased its position in shares of DraftKings by 20.6% in the 1st quarter. Lord Abbett & CO. LLC now owns 3,884,680 shares of the company’s stock valued at $176,403,000 after buying an additional 663,427 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.