DraftKings (NASDAQ:DKNG) Stock Price Down 5.5% - What's Next?

DraftKings Inc. (NASDAQ:DKNG - Get Free Report)'s stock price dropped 5.5% during mid-day trading on Tuesday . The stock traded as low as $38.44 and last traded at $38.29. Approximately 7,185,981 shares were traded during mid-day trading, a decline of 32% from the average daily volume of 10,495,766 shares. The stock had previously closed at $40.52.

Analysts Set New Price Targets

Several equities research analysts have recently commented on DKNG shares. Wells Fargo & Company boosted their price objective on DraftKings from $53.00 to $60.00 and gave the company an "overweight" rating in a report on Tuesday, February 18th. JPMorgan Chase & Co. boosted their price target on shares of DraftKings from $53.00 to $61.00 and gave the company an "overweight" rating in a research note on Tuesday, February 18th. Needham & Company LLC set a $65.00 price objective on shares of DraftKings in a research note on Tuesday, February 18th. Piper Sandler reissued an "overweight" rating and set a $60.00 target price (up from $48.00) on shares of DraftKings in a research report on Tuesday, February 18th. Finally, Benchmark raised their price target on shares of DraftKings from $44.00 to $51.00 and gave the company a "buy" rating in a research report on Monday, March 10th. Three analysts have rated the stock with a hold rating and twenty-four have issued a buy rating to the company. According to MarketBeat.com, DraftKings has a consensus rating of "Moderate Buy" and a consensus price target of $54.42.

DraftKings Trading Down 4.7 %

The company has a debt-to-equity ratio of 1.24, a current ratio of 0.93 and a quick ratio of 1.00. The firm has a fifty day simple moving average of $42.01 and a two-hundred day simple moving average of $40.35. The firm has a market capitalization of $17.29 billion, a P/E ratio of -33.29, a price-to-earnings-growth ratio of 1.43 and a beta of 2.07.

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DraftKings (NASDAQ:DKNG - Get Free Report) last posted its quarterly earnings results on Thursday, February 13th. The company reported ($0.28) earnings per share for the quarter, missing the consensus estimate of $0.07 by ($0.35). DraftKings had a negative return on equity of 48.13% and a negative net margin of 10.64%. On average, equities research analysts anticipate that DraftKings Inc. will post 0.64 earnings per share for the current fiscal year.

Insider Activity at DraftKings

In related news, CFO Alan Wayne Ellingson sold 158,661 shares of the business's stock in a transaction on 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 sale, the chief financial officer now directly owns 179,435 shares in the company, valued at approximately $7,611,632.70. The trade was a 46.93 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Paul Liberman sold 643,654 shares of the firm's stock in a transaction dated Tuesday, March 25th. The stock was sold at an average price of $38.95, for a total value of $25,070,323.30. Following the completion of the transaction, the insider now owns 682,764 shares of the company's stock, valued at approximately $26,593,657.80. This represents a 48.53 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 2,775,525 shares of company stock worth $117,241,446. 51.19% of the stock is owned by corporate insiders.

Institutional Trading of DraftKings

A number of hedge funds and other institutional investors have recently bought and sold shares of DKNG. Larson Financial Group LLC grew its position in shares of DraftKings by 134.8% during the 3rd quarter. Larson Financial Group LLC now owns 4,167 shares of the company's stock valued at $163,000 after purchasing an additional 2,392 shares in the last quarter. Daiwa Securities Group Inc. grew its position in DraftKings by 8.1% during the third quarter. Daiwa Securities Group Inc. now owns 39,966 shares of the company's stock worth $1,567,000 after buying an additional 2,980 shares in the last quarter. The Manufacturers Life Insurance Company increased its stake in DraftKings by 4.2% in the 3rd quarter. The Manufacturers Life Insurance Company now owns 25,660 shares of the company's stock worth $1,006,000 after acquiring an additional 1,039 shares during the last quarter. FMR LLC raised its holdings in shares of DraftKings by 14.7% in the 3rd quarter. FMR LLC now owns 6,467,066 shares of the company's stock valued at $253,509,000 after acquiring an additional 826,626 shares in the last quarter. Finally, D.A. Davidson & CO. boosted its position in shares of DraftKings by 2.4% during the 3rd quarter. D.A. Davidson & CO. now owns 23,972 shares of the company's stock valued at $940,000 after acquiring an additional 569 shares during the last quarter. Institutional investors 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.