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

Needham & Company LLC reaffirmed their buy rating on shares of DraftKings (NASDAQ:DKNG) in a research report released on Tuesday, Benzinga reports. Needham & Company LLC currently has a $60.00 price target on the stock.

Several other research firms have also recently issued reports on DKNG. The Goldman Sachs Group dropped their target price on DraftKings from $60.00 to $54.00 and set a buy rating on the stock in a research report on Monday, August 5th. Deutsche Bank Aktiengesellschaft increased their price objective on DraftKings from $34.00 to $35.00 and gave the stock a hold rating in a research report on Monday, May 6th. Morgan Stanley decreased their target price on shares of DraftKings from $51.00 to $47.00 and set an overweight rating on the stock in a research report on Tuesday, August 13th. BTIG Research increased their price target on shares of DraftKings from $53.00 to $55.00 and gave the company a buy rating in a report on Monday, May 6th. Finally, UBS Group boosted their price objective on shares of DraftKings from $56.00 to $60.00 and gave the stock a buy rating in a report on Wednesday, May 15th. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and twenty-four have assigned a buy rating to the stock. Based on data from MarketBeat.com, DraftKings currently has a consensus rating of Moderate Buy and a consensus target price of $49.52.

DraftKings Price Performance

DraftKings stock opened at $35.73 on Tuesday. The business has a 50 day simple moving average of $35.30 and a 200-day simple moving average of $39.79. DraftKings has a 12 month low of $25.73 and a 12 month high of $49.57. 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 stock has a market capitalization of $31.06 billion, a PE ratio of -30.28 and a beta of 1.80.

DraftKings (NASDAQ:DKNG) last announced its quarterly earnings data on Thursday, August 1st. The company reported $0.12 EPS for the quarter, topping analysts’ consensus estimates of ($0.01) by $0.13. The company had revenue of $1.10 billion during the quarter, compared to the consensus estimate of $1.11 billion. DraftKings had a negative net margin of 9.45% and a negative return on equity of 43.11%. DraftKings’s quarterly revenue was up 26.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.17) EPS. Equities analysts predict that DraftKings will post -0.31 earnings per share for the current year.

Insider Buying and Selling at DraftKings

In other news, insider Paul Liberman sold 668,890 shares of the business’s stock in a transaction on Tuesday, June 25th. The stock was sold at an average price of $38.83, for a total transaction of $25,972,998.70. Following the completion of the sale, the insider now owns 205,962 shares in the company, valued at $7,997,504.46. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. In other news, insider Paul Liberman sold 668,890 shares of DraftKings stock in a transaction on Tuesday, June 25th. The shares were sold at an average price of $38.83, for a total transaction of $25,972,998.70. Following the transaction, the insider now directly owns 205,962 shares of the company’s stock, valued at $7,997,504.46. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Harry Sloan sold 250,000 shares of DraftKings stock in a transaction dated Friday, June 14th. The stock was sold at an average price of $38.15, for a total value of $9,537,500.00. Following the transaction, the director now owns 250,000 shares in the company, valued at $9,537,500. The disclosure for this sale can be found here. In the last 90 days, insiders sold 1,470,537 shares of company stock worth $54,321,570. 51.19% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in DKNG. Sanctuary Advisors LLC acquired a new position in shares of DraftKings during the 2nd quarter worth approximately $1,530,000. Coronation Fund Managers Ltd. lifted its stake in shares of DraftKings by 6.9% during the 2nd quarter. Coronation Fund Managers Ltd. now owns 296,419 shares of the company’s stock worth $11,314,000 after buying an additional 19,127 shares during the last quarter. Truist Financial Corp boosted its holdings in shares of DraftKings by 3.4% during the 2nd quarter. Truist Financial Corp now owns 122,608 shares of the company’s stock worth $4,680,000 after buying an additional 3,975 shares during the period. EP Wealth Advisors LLC raised its holdings in DraftKings by 22.6% in the 2nd quarter. EP Wealth Advisors LLC now owns 8,684 shares of the company’s stock valued at $331,000 after acquiring an additional 1,602 shares during the period. Finally, Quarry LP acquired a new stake in DraftKings during the second quarter worth approximately $87,000. Institutional investors and hedge funds 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.