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

by · The Markets Daily

DraftKings (NASDAQ:DKNG – Get Free Report)‘s stock had its “buy” rating reissued by stock analysts at Needham & Company LLC in a note issued to investors on Monday, Benzinga reports. They currently have a $60.00 price target on the stock. Needham & Company LLC’s target price points to a potential upside of 53.30% from the stock’s current price.

Several other research analysts also recently commented on the stock. BMO Capital Markets decreased their target price on shares of 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 reissued a “buy” rating and set a $48.00 price objective (down from $50.00) on shares of DraftKings in a research report on Monday, August 5th. Bank of America reduced their price objective 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. Morgan Stanley reissued an “overweight” rating and set a $47.00 price objective on shares of DraftKings in a research report on Wednesday, September 11th. Finally, Wells Fargo & Company reduced their price objective on shares of DraftKings from $53.00 to $47.00 and set an “overweight” rating on the stock in a research report on Monday, August 5th. Three investment analysts have rated the stock with a hold rating and twenty-four have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, DraftKings presently has an average rating of “Moderate Buy” and an average price target of $49.78.

Read Our Latest Stock Report on DraftKings

DraftKings Stock Performance

NASDAQ DKNG opened at $39.14 on Monday. DraftKings has a 52-week low of $25.73 and a 52-week high of $49.57. The company has a 50-day simple moving average of $35.43 and a 200 day simple moving average of $39.40. The company has a debt-to-equity ratio of 0.97, a quick ratio of 1.11 and a current ratio of 1.11. The company has a market capitalization of $34.02 billion, a PE ratio of -33.17 and a beta of 1.80.

DraftKings (NASDAQ:DKNG – Get Free Report) last released its quarterly earnings data on Thursday, August 1st. The company reported $0.12 EPS for the quarter, beating analysts’ consensus estimates of ($0.01) by $0.13. DraftKings had a negative net margin of 9.45% and a negative return on equity of 43.11%. The company had revenue of $1.10 billion during the quarter, compared to analyst estimates of $1.11 billion. During the same period last year, the business earned ($0.17) earnings per share. DraftKings’s revenue was up 26.2% compared to the same quarter last year. On average, research analysts predict that DraftKings will post -0.31 EPS for the current year.

Insider Activity at DraftKings

In related news, insider Paul Liberman sold 63,206 shares of the stock in a transaction dated Monday, July 15th. The shares were sold at an average price of $39.00, for a total transaction of $2,465,034.00. Following the sale, the insider now directly owns 1,716,406 shares of the company’s stock, valued at approximately $66,939,834. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. In other news, insider Jason Robins sold 200,000 shares of the firm’s stock in a transaction dated Thursday, August 8th. The shares were sold at an average price of $30.72, for a total transaction of $6,144,000.00. Following the sale, the insider now owns 2,699,815 shares of the company’s stock, valued at approximately $82,938,316.80. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Paul Liberman sold 63,206 shares of the firm’s stock in a transaction dated Monday, July 15th. The shares were sold at an average price of $39.00, for a total transaction of $2,465,034.00. Following the sale, the insider now directly owns 1,716,406 shares in the company, valued at approximately $66,939,834. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 551,647 shares of company stock valued at $18,811,071. 51.19% of the stock is owned by insiders.

Institutional Trading of DraftKings

A number of institutional investors have recently made changes to their positions in DKNG. Marshall Wace LLP boosted its holdings in shares of DraftKings by 53.3% in the second quarter. Marshall Wace LLP now owns 9,410,431 shares of the company’s stock worth $359,196,000 after buying an additional 3,269,932 shares during the last quarter. First Trust Advisors LP boosted its holdings in shares of DraftKings by 148.2% in the fourth quarter. First Trust Advisors LP now owns 4,235,008 shares of the company’s stock worth $149,284,000 after buying an additional 2,528,503 shares during the last quarter. Eagle Asset Management Inc. purchased a new position in shares of DraftKings in the fourth quarter worth approximately $87,829,000. Vanguard Group Inc. boosted its holdings in shares of DraftKings by 6.0% in the fourth quarter. Vanguard Group Inc. now owns 39,263,918 shares of the company’s stock worth $1,384,053,000 after buying an additional 2,225,759 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC boosted its holdings in shares of DraftKings by 1,048.1% in the first quarter. Allspring Global Investments Holdings LLC now owns 1,888,287 shares of the company’s stock worth $85,747,000 after buying an additional 1,723,819 shares during the last quarter. Hedge funds and other institutional investors own 37.70% of the company’s stock.

DraftKings Company Profile

(Get Free Report)

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.

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