DraftKings (NASDAQ:DKNG) Trading Down 5.2% - Time to Sell?

DraftKings Inc. (NASDAQ:DKNG - Get Free Report) traded down 5.2% during trading on Tuesday . The company traded as low as $51.27 and last traded at $50.72. 5,697,972 shares traded hands during mid-day trading, a decline of 39% from the average session volume of 9,283,876 shares. The stock had previously closed at $53.49.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the stock. Truist Financial boosted their target price on shares of DraftKings from $50.00 to $60.00 and gave the stock a "buy" rating in a report on Tuesday. JMP Securities reiterated a "market outperform" rating and issued a $50.00 price target on shares of DraftKings in a research report on Friday, February 14th. Piper Sandler reiterated an "overweight" rating and issued a $60.00 price target (up previously from $48.00) on shares of DraftKings in a research report on Tuesday. Macquarie increased their price target on DraftKings from $50.00 to $51.00 and gave the company an "outperform" rating in a research report on Monday, November 11th. Finally, Wells Fargo & Company increased their price target on DraftKings from $53.00 to $60.00 and gave the company an "overweight" rating in a research report on Tuesday. Three research analysts have rated the stock with a hold rating and twenty-four have issued a buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $53.69.

DraftKings Stock Performance

The company has a debt-to-equity ratio of 1.24, a quick ratio of 1.00 and a current ratio of 0.93. The firm's 50 day moving average is $41.41 and its 200-day moving average is $39.28. The firm has a market cap of $22.33 billion, a price-to-earnings ratio of -42.99, a price-to-earnings-growth ratio of 1.91 and a beta of 1.93.

DraftKings (NASDAQ:DKNG - Get Free Report) last released its quarterly earnings data on Thursday, February 13th. The company reported ($0.28) earnings per share (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%. Sell-side analysts anticipate that DraftKings Inc. will post 0.49 earnings per share for the current fiscal year.

Insider Buying and Selling at DraftKings

In other DraftKings news, insider R Stanton Dodge sold 228,496 shares of the stock in a transaction that occurred on Monday, December 9th. The stock was sold at an average price of $42.74, for a total transaction of $9,765,919.04. Following the transaction, the insider now owns 541,884 shares in the company, valued at $23,160,122.16. This trade represents a 29.66 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Paul Liberman sold 532,095 shares of the stock in a transaction that occurred on Thursday, December 26th. The shares were sold at an average price of $38.30, for a total value of $20,379,238.50. Following the transaction, the insider now owns 68,654 shares in the company, valued at approximately $2,629,448.20. This trade represents a 88.57 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 1,160,591 shares of company stock worth $46,945,158 over the last 90 days. Insiders own 51.19% of the company's stock.

Hedge Funds Weigh In On DraftKings

Several large investors have recently made changes to their positions in DKNG. Raiffeisen Bank International AG acquired a new position in shares of DraftKings during the 4th quarter worth about $25,000. Stonebridge Financial Group LLC acquired a new position in shares of DraftKings during the 4th quarter worth about $28,000. Point72 Asia Singapore Pte. Ltd. acquired a new position in shares of DraftKings during the 4th quarter worth about $28,000. Synergy Asset Management LLC acquired a new position in shares of DraftKings during the 4th quarter worth about $30,000. Finally, Synergy Investment Management LLC acquired a new stake in DraftKings in the 4th quarter worth $37,000. 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.