DraftKings (NASDAQ:DKNG) Stock Price Down 4.1% – Here’s What Happened

DraftKings Inc. (NASDAQ:DKNG) shares fell 4.1% during trading on Monday . The company traded as low as $36.83 and last traded at $36.88. 1,546,099 shares changed hands during mid-day trading, a decline of 85% from the average session volume of 10,347,255 shares. The stock had previously closed at $38.46.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on DKNG shares. Truist Financial reaffirmed a “buy” rating and set a $50.00 price objective on shares of DraftKings in a research report on Wednesday, August 14th. Stifel Nicolaus restated a “buy” rating and set a $48.00 price target (down from $50.00) on shares of DraftKings in a report on Monday, August 5th. Wells Fargo & Company upped their price target on shares of DraftKings from $47.00 to $52.00 and gave the stock an “overweight” rating in a research note on Thursday, October 17th. UBS Group raised their price objective on shares of DraftKings from $56.00 to $58.00 and gave the company a “buy” rating in a research note on Wednesday, September 4th. Finally, Morgan Stanley upped their target price on shares of DraftKings from $47.00 to $48.00 and gave the stock an “overweight” rating in a research note on Tuesday. Three research analysts have rated the stock with a hold rating and twenty-four have issued a buy rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $50.22.

DraftKings Price Performance

The firm has a 50 day moving average price of $37.05 and a 200 day moving average price of $38.48. The stock has a market capitalization of $32.74 billion, a PE ratio of -31.92 and a beta of 1.81. The company has a current ratio of 1.11, a quick ratio of 1.11 and a debt-to-equity ratio of 0.97.

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

Insiders Place Their Bets

In other DraftKings news, insider Paul Liberman sold 643,654 shares of the company’s stock in a transaction that occurred on Wednesday, September 25th. The shares were sold at an average price of $41.24, for a total value of $26,544,290.96. Following the completion of the transaction, the insider now directly owns 137,308 shares in the company, valued at $5,662,581.92. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. In related news, insider Paul Liberman sold 643,654 shares of DraftKings stock in a transaction on Wednesday, September 25th. The shares were sold at an average price of $41.24, for a total transaction of $26,544,290.96. Following the transaction, the insider now owns 137,308 shares in the company, valued at approximately $5,662,581.92. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Jason Robins sold 200,000 shares of the stock in a transaction on Wednesday, August 21st. The stock was sold at an average price of $35.25, for a total value of $7,050,000.00. Following the completion of the sale, the insider now owns 2,678,082 shares of the company’s stock, valued at $94,402,390.50. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 1,132,095 shares of company stock worth $42,890,328. Company insiders own 51.19% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. LRI Investments LLC bought a new stake in shares of DraftKings during the first quarter valued at approximately $31,000. Concord Wealth Partners increased its holdings in DraftKings by 140.2% in the 1st quarter. Concord Wealth Partners now owns 776 shares of the company’s stock valued at $35,000 after acquiring an additional 453 shares during the last quarter. Alta Advisers Ltd purchased a new stake in DraftKings in the 2nd quarter worth $38,000. Redwood Wealth Management Group LLC purchased a new stake in DraftKings in the 2nd quarter worth $39,000. Finally, St. Johns Investment Management Company LLC bought a new position in shares of DraftKings during the 2nd quarter valued at about $46,000. 37.70% of the stock is 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.