DraftKings (NASDAQ:DKNG) Stock Price Down 7% – What’s Next?

DraftKings Inc. (NASDAQ:DKNG) fell 7% during mid-day trading on Friday . The stock traded as low as $37.75 and last traded at $37.30. 5,400,084 shares were traded during trading, a decline of 43% from the average session volume of 9,527,522 shares. The stock had previously closed at $40.10.

Analysts Set New Price Targets

Several research firms have recently commented on DKNG. Canaccord Genuity Group raised their price target on DraftKings from $54.00 to $60.00 and gave the company a “buy” rating in a report on Friday, February 14th. Needham & Company LLC set a $65.00 target price on shares of DraftKings in a research report on Tuesday, February 18th. JPMorgan Chase & Co. upped their price target on shares of DraftKings from $53.00 to $61.00 and gave the stock an “overweight” rating in a research note on Tuesday, February 18th. BTIG Research set a $59.00 price objective on shares of DraftKings in a report on Monday, February 3rd. Finally, Macquarie increased their target price on shares of DraftKings from $50.00 to $51.00 and gave the company an “outperform” rating in a report on Monday, November 11th. Three research analysts have rated the stock with a hold rating and twenty-five have issued a buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $54.44.

DraftKings Price Performance

The company has a market capitalization of $19.31 billion, a price-to-earnings ratio of -37.18, a P/E/G ratio of 1.43 and a beta of 2.07. The company has a fifty day simple moving average of $42.06 and a two-hundred day simple moving average of $40.04. The company has a debt-to-equity ratio of 1.24, a quick ratio of 1.00 and a current ratio of 0.93.

DraftKings (NASDAQ:DKNG) last released its earnings results on Thursday, February 13th. The company reported ($0.28) EPS for the quarter, missing the consensus estimate of $0.07 by ($0.35). DraftKings had a negative net margin of 10.64% and a negative return on equity of 48.13%. As a group, research analysts anticipate that DraftKings Inc. will post 0.64 earnings per share for the current year.

Insider Buying and Selling

In other DraftKings news, CFO Alan Wayne Ellingson sold 158,661 shares of the company’s stock in a transaction dated Tuesday, February 25th. The stock was sold at an average price of $42.42, for a total transaction of $6,730,399.62. Following the completion of the sale, the chief financial officer now directly owns 179,435 shares in the company, valued at $7,611,632.70. This represents a 46.93 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Matthew Kalish sold 210,000 shares of the stock in a transaction that occurred on Tuesday, March 4th. The stock was sold at an average price of $40.61, for a total transaction of $8,528,100.00. Following the sale, the insider now directly owns 4,140,509 shares of the company’s stock, valued at approximately $168,146,070.49. This trade represents a 4.83 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 2,783,488 shares of company stock valued at $118,128,867. Insiders own 51.19% of the company’s stock.

Institutional Investors Weigh In On DraftKings

Several large investors have recently made changes to their positions in the business. Siemens Fonds Invest GmbH acquired a new position in shares of DraftKings during the fourth quarter worth about $665,000. Total Wealth Planning & Management Inc. acquired a new position in DraftKings during the 4th quarter worth approximately $243,000. Universal Beteiligungs und Servicegesellschaft mbH purchased a new position in DraftKings in the 4th quarter worth approximately $1,728,000. Employees Retirement System of Texas acquired a new stake in DraftKings in the fourth quarter valued at approximately $1,822,000. Finally, Bernard Wealth Management Corp. purchased a new stake in shares of DraftKings during the fourth quarter valued at approximately $94,000. Institutional investors and hedge funds own 37.70% of the company’s stock.

DraftKings Company Profile

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.