DraftKings (NASDAQ:DKNG) Earns Buy Rating from Needham & Company LLC

Needham & Company LLC reiterated their buy rating on shares of DraftKings (NASDAQ:DKNG) in a research report report published on Friday morning, Benzinga reports. They currently have a $58.00 target price on the stock.

DKNG has been the topic of several other reports. Wells Fargo & Company upped their price target on shares of DraftKings from $39.00 to $53.00 and gave the company an overweight rating in a research note on Tuesday, February 20th. Moffett Nathanson raised their target price on shares of DraftKings from $52.00 to $55.00 and gave the stock a buy rating in a report on Thursday, March 28th. Truist Financial reiterated a buy rating and issued a $55.00 price target (up from $45.00) on shares of DraftKings in a research report on Tuesday, February 20th. Susquehanna increased their price target on DraftKings from $54.00 to $56.00 and gave the stock a positive rating in a research report on Monday, April 29th. Finally, Oppenheimer lifted their price objective on DraftKings from $55.00 to $60.00 and gave the company an outperform rating in a report on Tuesday, February 20th. Two research analysts have rated the stock with a sell rating, one has issued a hold rating and twenty-five have given a buy rating to the company. Based on data from MarketBeat, DraftKings presently has an average rating of Moderate Buy and an average price target of $47.45.

DraftKings Stock Performance

DraftKings stock opened at $41.82 on Friday. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 1.49. The stock has a 50-day simple moving average of $43.58 and a 200 day simple moving average of $38.92. DraftKings has a 52 week low of $21.07 and a 52 week high of $49.57.

DraftKings (NASDAQ:DKNG) last announced its quarterly earnings results on Thursday, May 2nd. The company reported ($0.30) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.28) by ($0.02). The business had revenue of $1.18 billion for the quarter, compared to analyst estimates of $1.12 billion. DraftKings had a negative net margin of 13.45% and a negative return on equity of 61.75%. 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. As a group, sell-side analysts forecast that DraftKings will post -0.24 earnings per share for the current fiscal year.

Insider Activity

In other DraftKings news, insider Jason Robins sold 200,000 shares of the stock in a transaction that occurred on Wednesday, February 21st. The shares were sold at an average price of $40.89, for a total transaction of $8,178,000.00. Following the completion of the sale, the insider now owns 3,195,812 shares of the company’s stock, valued at approximately $130,676,752.68. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. In other DraftKings news, insider R Stanton Dodge sold 686,101 shares of the company’s stock in a transaction on Thursday, February 8th. The shares were sold at an average price of $43.06, for a total transaction of $29,543,509.06. Following the sale, the insider now owns 200,239 shares of the company’s stock, valued at $8,622,291.34. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Jason Robins sold 200,000 shares of the business’s stock in a transaction dated Wednesday, February 21st. The shares were sold at an average price of $40.89, for a total value of $8,178,000.00. Following the completion of the transaction, the insider now directly owns 3,195,812 shares in the company, valued at $130,676,752.68. The disclosure for this sale can be found here. Over the last quarter, insiders sold 1,086,101 shares of company stock valued at $45,903,509. Company insiders own 48.94% of the company’s stock.

Institutional Investors Weigh In On DraftKings

A number of hedge funds have recently added to or reduced their stakes in DKNG. Highlander Capital Management LLC increased its stake in shares of DraftKings by 180.0% in the 4th quarter. Highlander Capital Management LLC now owns 700 shares of the company’s stock valued at $25,000 after acquiring an additional 450 shares in the last quarter. Transcendent Capital Group LLC bought a new stake in DraftKings in the 4th quarter valued at about $26,000. Montag A & Associates Inc. bought a new position in DraftKings in the fourth quarter worth approximately $29,000. LifeSteps Financial Inc. acquired a new stake in DraftKings in the first quarter valued at approximately $33,000. Finally, Concord Wealth Partners increased 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 acquiring an additional 453 shares in the last quarter. 37.70% of the stock is currently owned by 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.