DraftKings (NASDAQ:DKNG) Trading Down 7% - Should You Sell?

DraftKings Inc. (NASDAQ:DKNG - Get Free Report)'s share price was down 7% during trading on Friday . The company traded as low as $37.75 and last traded at $37.30. Approximately 5,400,084 shares traded hands during trading, a decline of 43% from the average daily volume of 9,527,522 shares. The stock had previously closed at $40.10.

Analyst Upgrades and Downgrades

Several analysts have commented on DKNG shares. Stifel Nicolaus lifted their price objective on shares of DraftKings from $48.00 to $57.00 and gave the company a "buy" rating in a research note on Tuesday, February 18th. Truist Financial boosted their target price on shares of DraftKings from $50.00 to $60.00 and gave the company a "buy" rating in a research report on Tuesday, February 18th. TD Cowen decreased their price objective on DraftKings from $55.00 to $51.00 and set a "buy" rating for the company in a report on Tuesday, February 4th. Cowen reissued a "buy" rating on shares of DraftKings in a report on Tuesday, February 4th. Finally, Susquehanna decreased their price objective on DraftKings from $56.00 to $54.00 and set a "positive" rating for the company in a report on Wednesday, January 8th. Three equities research analysts have rated the stock with a hold rating and twenty-five have given a buy rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $54.44.

DraftKings Price Performance

The firm has a market capitalization of $19.31 billion, a price-to-earnings ratio of -37.18, a PEG ratio of 1.43 and a beta of 2.07. The company has a quick ratio of 1.00, a current ratio of 0.93 and a debt-to-equity ratio of 1.24. The stock's 50-day moving average price is $42.06 and its 200 day moving average price is $40.07.

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

Insiders Place Their Bets

In other news, insider Paul Liberman sold 200,000 shares of the firm's stock in a transaction that occurred on Friday, January 10th. The shares were sold at an average price of $39.00, for a total transaction of $7,800,000.00. Following the completion of the sale, the insider now owns 1,342,722 shares in the company, valued at $52,366,158. This trade represents a 12.96 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider R Stanton Dodge sold 228,496 shares of the firm's stock in a transaction on Monday, December 9th. The stock was sold at an average price of $42.74, for a total value of $9,765,919.04. Following the sale, the insider now directly owns 541,884 shares of the company's stock, valued at approximately $23,160,122.16. This trade represents a 29.66 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 2,783,488 shares of company stock valued at $118,128,867 in the last three months. 51.19% of the stock is currently owned by insiders.

Institutional Investors Weigh In On DraftKings

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DKNG. Vanguard Group Inc. increased its position in shares of DraftKings by 1.4% during the 4th quarter. Vanguard Group Inc. now owns 43,073,314 shares of the company's stock worth $1,602,327,000 after purchasing an additional 584,452 shares during the last quarter. T. Rowe Price Investment Management Inc. increased its position in shares of DraftKings by 4.0% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 18,569,637 shares of the company's stock valued at $690,791,000 after acquiring an additional 707,504 shares during the last quarter. FMR LLC increased its position in shares of DraftKings by 110.6% during the fourth quarter. FMR LLC now owns 13,617,448 shares of the company's stock valued at $506,569,000 after acquiring an additional 7,150,382 shares during the last quarter. Janus Henderson Group PLC increased its holdings in DraftKings by 31,346.8% in the 4th quarter. Janus Henderson Group PLC now owns 9,381,853 shares of the company's stock valued at $349,005,000 after purchasing an additional 9,352,019 shares during the last quarter. Finally, Geode Capital Management LLC increased its holdings in DraftKings by 1.1% in the 4th quarter. Geode Capital Management LLC now owns 8,075,009 shares of the company's stock valued at $299,921,000 after purchasing an additional 89,988 shares during the last quarter. 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.