Northland Capmk Predicts Reduced Earnings for DraftKings

DraftKings Inc. (NASDAQ:DKNG - Free Report) - Research analysts at Northland Capmk decreased their FY2024 earnings per share estimates for DraftKings in a note issued to investors on Monday, November 11th. Northland Capmk analyst G. Gibas now expects that the company will earn ($0.79) per share for the year, down from their previous estimate of ($0.41). The consensus estimate for DraftKings' current full-year earnings is ($0.41) per share. Northland Capmk also issued estimates for DraftKings' Q4 2024 earnings at ($0.03) EPS, Q1 2025 earnings at ($0.09) EPS, Q3 2025 earnings at ($0.27) EPS and FY2025 earnings at $0.18 EPS.

A number of other brokerages have also recently weighed in on DKNG. Susquehanna raised their price target on DraftKings from $48.00 to $50.00 and gave the company a "positive" rating in a research report on Monday, October 7th. UBS Group raised their target price on shares of DraftKings from $56.00 to $58.00 and gave the company a "buy" rating in a report on Wednesday, September 4th. JMP Securities upped their price target on shares of DraftKings from $51.00 to $52.00 and gave the company a "market outperform" rating in a report on Monday. Mizuho raised their price objective on shares of DraftKings from $54.00 to $62.00 and gave the stock an "outperform" rating in a research note on Friday, October 18th. Finally, TD Cowen lifted their price objective on DraftKings from $50.00 to $55.00 and gave the stock a "buy" rating in a research report on Tuesday. Three equities research analysts have rated the stock with a hold rating and twenty-five have issued a buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $50.64.

DraftKings Price Performance

Shares of DKNG stock traded down $0.16 during midday trading on Thursday, reaching $41.72. 3,137,468 shares of the company traded hands, compared to its average volume of 10,363,761. The firm has a market cap of $36.65 billion, a PE ratio of -47.59 and a beta of 1.82. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.00 and a quick ratio of 1.11. The firm's 50 day simple moving average is $38.15 and its two-hundred day simple moving average is $37.94. DraftKings has a 1-year low of $28.69 and a 1-year high of $49.57.

DraftKings (NASDAQ:DKNG - Get Free Report) last announced its quarterly earnings data on Thursday, November 7th. The company reported ($0.60) EPS for the quarter, missing the consensus estimate of ($0.42) by ($0.18). DraftKings had a negative net margin of 9.06% and a negative return on equity of 41.23%. The company had revenue of $1.10 billion during the quarter, compared to analyst estimates of $1.12 billion.

Institutional Investors Weigh In On DraftKings

Hedge funds have recently made changes to their positions in the business. Janney Montgomery Scott LLC boosted its stake in DraftKings by 51.6% during the third quarter. Janney Montgomery Scott LLC now owns 378,227 shares of the company's stock valued at $14,826,000 after buying an additional 128,676 shares in the last quarter. Sanctuary Advisors LLC acquired a new position in shares of DraftKings in the 2nd quarter worth approximately $1,530,000. Romano Brothers AND Company bought a new stake in shares of DraftKings in the 3rd quarter worth approximately $1,181,000. US Bancorp DE lifted its stake in DraftKings by 110.2% during the third quarter. US Bancorp DE now owns 859,715 shares of the company's stock valued at $33,701,000 after purchasing an additional 450,773 shares during the last quarter. Finally, BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp boosted its holdings in DraftKings by 63.6% during the second quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 81,979 shares of the company's stock worth $3,129,000 after buying an additional 31,880 shares in the last quarter. Institutional investors own 37.70% of the company's stock.

Insider Activity at DraftKings

In other news, insider Jason Robins sold 200,000 shares of the stock in a transaction that occurred on Wednesday, August 21st. The stock was sold at an average price of $35.25, for a total transaction of $7,050,000.00. Following the completion of the transaction, the insider now directly owns 2,678,082 shares in the company, valued at approximately $94,402,390.50. This represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. In other news, insider Jason Robins sold 200,000 shares of the business's stock in a transaction dated Wednesday, August 21st. The shares were 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 approximately $94,402,390.50. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Paul Liberman sold 643,654 shares of the stock in a transaction that occurred on Wednesday, September 25th. The stock was sold at an average price of $41.24, for a total value of $26,544,290.96. Following the transaction, the insider now directly owns 137,308 shares in the company, valued at approximately $5,662,581.92. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 1,020,536 shares of company stock valued at $39,966,465. Insiders own 51.19% of the company's stock.

DraftKings Company Profile

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.