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

Needham & Company LLC restated their buy rating on shares of DraftKings (NASDAQ:DKNG) in a research report sent to investors on Monday, Benzinga reports. The brokerage currently has a $60.00 price target on the stock.

Other equities research analysts have also issued reports about the stock. Wells Fargo & Company cut their price objective on shares of DraftKings from $53.00 to $47.00 and set an overweight rating for the company in a report on Monday, August 5th. Guggenheim dropped 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. BMO Capital Markets reduced their price objective on DraftKings from $54.00 to $48.00 and set an outperform rating on the stock in a research note on Friday, August 2nd. Stifel Nicolaus reiterated a buy rating and set a $48.00 target price (down from $50.00) on shares of DraftKings in a research report on Monday, August 5th. Finally, Bank of America reduced their price target on shares of DraftKings from $54.00 to $50.00 and set a buy rating on the stock in a research report on Monday, July 22nd. Three equities research analysts have rated the stock with a hold rating and twenty-four have given a buy rating to the stock. According to data from MarketBeat, DraftKings presently has an average rating of Moderate Buy and a consensus price target of $49.74.

DraftKings Price Performance

Shares of NASDAQ:DKNG opened at $40.94 on Monday. The firm’s 50 day simple moving average is $35.47 and its two-hundred day simple moving average is $39.39. The company has a debt-to-equity ratio of 0.97, a current ratio of 1.11 and a quick ratio of 1.11. The company has a market capitalization of $35.97 billion, a P/E ratio of -34.69 and a beta of 1.80. DraftKings has a 1-year low of $25.73 and a 1-year high of $49.57.

DraftKings (NASDAQ:DKNG) last posted its quarterly earnings results on Thursday, August 1st. The company reported $0.12 EPS for the quarter, beating analysts’ consensus estimates of ($0.01) by $0.13. The business had revenue of $1.10 billion for the quarter, compared to analysts’ expectations of $1.11 billion. DraftKings had a negative return on equity of 43.11% and a negative net margin of 9.45%. The business’s quarterly revenue was up 26.2% on a year-over-year basis. During the same period last year, the firm earned ($0.17) earnings per share. Research analysts expect that DraftKings will post -0.31 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Jason Robins sold 200,000 shares of the company’s stock in a transaction dated Thursday, August 8th. The shares were sold at an average price of $30.72, for a total value of $6,144,000.00. Following the completion of the sale, the insider now directly owns 2,699,815 shares of the company’s stock, valued at $82,938,316.80. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. In other DraftKings news, insider Jason Robins sold 200,000 shares of the company’s stock in a transaction on Thursday, August 8th. The stock was sold at an average price of $30.72, for a total transaction of $6,144,000.00. Following the completion of the sale, the insider now owns 2,699,815 shares in the company, valued at $82,938,316.80. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider Paul Liberman sold 63,206 shares of DraftKings stock in a transaction dated 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 completion of the transaction, the insider now owns 1,716,406 shares in the company, valued at approximately $66,939,834. The disclosure for this sale can be found here. Insiders have sold a total of 551,647 shares of company stock valued at $18,811,071 over the last quarter. 51.19% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On DraftKings

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Transcendent Capital Group LLC purchased a new position in shares of DraftKings in the 4th quarter valued at approximately $26,000. LRI Investments LLC purchased a new position in shares of DraftKings in the first quarter worth $31,000. LifeSteps Financial Inc. acquired a new stake in shares of DraftKings during the first quarter worth $33,000. Concord Wealth Partners grew its holdings in shares of DraftKings by 140.2% during the first quarter. Concord Wealth Partners now owns 776 shares of the company’s stock valued at $35,000 after buying an additional 453 shares during the last quarter. Finally, Alta Advisers Ltd acquired a new position in shares of DraftKings in the 2nd quarter valued at $38,000. 37.70% of the stock is currently owned by hedge funds and other institutional investors.

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.