DraftKings (DKNG) Stock Price, News & Analysis

Company Overview

DraftKings Inc. is a digital sports entertainment and gaming company serving industry and gamers alike. The company offers multi-channel sports betting and gaming technologies that are used by sports and gaming entertainment operators in 17 countries. In the U.S., the company operates iGaming through its DraftKings brand in 5 states, as well as operates Golden Nugget Online Gaming, an iGaming product and gaming brand in 3 states.

DraftKings is headquartered in Boston, Massachusetts, and is the only vertically integrated online gambling platform headquartered in the US and targeting US gamers. The company was founded in 2011 by three close friends and went public in 2020 with a listing on the NASDAQ stock exchange. The initial offering is noteworthy because the company went public via merger with a SPAC formerly known as Diamond Eagle Acquisition Company.

Draftkings is run by Jason Robins, Matt Kalish, and Paul Liberman. The three started as friends but turned into cofounders, entrepreneurs, and corporate executives. Robins is CEO and in charge of corporate operations while Kalish and Liberman are president of DraftKings North America and Global Technology and Product respectively. Together, they manage a team of 10 executives and a network of 14 locations including 8 outside the US.

The company began as a dream to improve fantasy sports leagues. The goal was to change the way fantasy sports were played and open the door to a host of new gaming opportunities. The product was first launched in 2012 and now the company’s daily fantasy sports product is available in 6 countries internationally with 15 distinct sports categories.

Draftkings sets itself apart from the average fantasy sports provider by not only offering the widest selection of sports but the most control for the players. Players can re-draft new line-ups at will for most sports and there are daily contests within each league. The idea is for players to have a chance to win on a seasonal, quarterly, monthly, weekly, and daily basis.

DraftKings Sportsbook is live with mobile and/or retail betting operations in the United States pursuant to regulations in 18 states. The Sportsbook connects sports fans with legal sports betting operations in states with legalized gambling.

DraftKings expanded its offering with the launch of DraftKings Casino. DraftKings Casino is home to all the favorite table and slot-machine games but in a digital format. The Casino games are available on desktop and mobile like all of DraftKings offerings making them easily accessible to players.

In addition to gaming and sports betting, DraftKings is banking on the cryptocurrency revolution with DraftKings Marketplace. DraftKings Marketplace is a digital collectibles ecosystem designed for easy use that offers curated NFT drops and secondary-market transactions.

DraftKings SPAC merger included the addition of SBTech, a sports betting technology platform. DraftKings sports betting and casino technologies are available as a white-lable for businesses through this platform. SBTech offers an end-to-end solution including the gaming platforms and back-office services.

DraftKings also owns Vegas Sports Information Network (VSiN), a multi-platform broadcast and content company. Vegas Sports Information company can be accessed online or screened on live TV featuring world-renown sports commentators, players, and coaches.

Written by Jeffrey Neal Johnson

Key Stats

• Today's Range: $43.49 to $44.48
• 50-Day Range: $35.32 to $43.80
• 52-Week Range: $28.69 to $49.57
• Volume: 4.93 million shs
• Average Volume: 10.35 million shs
• Market Capitalization: $38.43 billion
• P/E Ratio: N/A
• Dividend Yield: N/A
• Price Target: $50.85
• Consensus Rating: Moderate Buy

DraftKings Stock Analysis - MarketRank™

DraftKings scored higher than 77% of companies evaluated by MarketBeat, and ranked 88th out of 290 stocks in the consumer discretionary sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 3.4 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

DraftKings has received a consensus rating of Moderate Buy. The company's average rating score is 2.89, and is based on 24 buy ratings, 3 hold ratings, and no sell ratings.

Amount of Analyst Coverage

DraftKings has been the subject of 14 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Earnings and Valuation

• Score: 0.6 / 5
• Proj. Earnings Growth: Growing

Earnings Growth

Earnings for DraftKings are expected to grow in the coming year, from ($0.73) to $0.43 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of DraftKings is -49.59, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings.

Price to Earnings Ratio vs. Sector

The P/E ratio of DraftKings is -49.59, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings.

Price to Book Value per Share Ratio

DraftKings has a P/B Ratio of 35.77. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

• Score: 4.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

2.77% of the outstanding shares of DraftKings have been sold short.

Short Interest Ratio / Days to Cover

DraftKings has a short interest ratio ("days to cover") of 2.7, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in DraftKings has recently decreased by 1.77%, indicating that investor sentiment is improving.

Dividend

• Score: 0.0 / 5
• Dividend Strength: N/A

Dividend Yield

DraftKings does not currently pay a dividend.

Dividend Growth

DraftKings does not have a long track record of dividend growth.

Sustainability and ESG

• Score: 0.0 / 5
• Environmental Score: -0.57

Percentage of Shares Shorted

2.77% of the outstanding shares of DraftKings have been sold short.

Short Interest Ratio / Days to Cover

DraftKings has a short interest ratio ("days to cover") of 2.7, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in DraftKings has recently decreased by 1.77%, indicating that investor sentiment is improving.

News and Social Media

• Score: 2.5 / 5
• News Sentiment: 0.41

News Sentiment

DraftKings has a news sentiment score of 0.41. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a lower news sentiment than the 0.67 average news sentiment score of Consumer Discretionary companies.

News Coverage This Week

MarketBeat has tracked 15 news articles for DraftKings this week, compared to 18 articles on an average week.

Search Interest

64 people have searched for DKNG on MarketBeat in the last 30 days. This is an increase of 10% compared to the previous 30 days.

MarketBeat Follows

14 people have added DraftKings to their MarketBeat watchlist in the last 30 days. This is an increase of 17% compared to the previous 30 days.

Company Ownership

• Score: 2.5 / 5
• Insider Trading: Selling Shares

Insider Buying vs. Insider Selling

In the past three months, DraftKings insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $32,916,465.00 in company stock.

Percentage Held by Insiders

51.19% of the stock of DraftKings is held by insiders. A high percentage of insider ownership can be a sign of company health.

Percentage Held by Institutions

Only 37.70% of the stock of DraftKings is held by institutions.

DKNG Stock Analysis - Frequently Asked Questions

How have DKNG shares performed this year?

DraftKings' stock was trading at $35.25 at the start of the year. Since then, DKNG shares have increased by 23.8% and is now trading at $43.64.
View the best growth stocks for 2024 here.

How were DraftKings' earnings last quarter?

DraftKings Inc. (NASDAQ:DKNG) announced its quarterly earnings results on Thursday, November, 7th. The company reported ($0.60) EPS for the quarter, missing analysts' consensus estimates of ($0.42) by $0.18. The business earned $1.10 billion during the quarter, compared to analysts' expectations of $1.12 billion. DraftKings had a negative net margin of 9.06% and a negative trailing twelve-month return on equity of 41.23%.

Who are DraftKings' major shareholders?

DraftKings' top institutional investors include Geode Capital Management LLC (0.91%), Sumitomo Mitsui Trust Group Inc. (0.76%), FMR LLC (0.74%) and ARK Investment Management LLC (0.69%). Insiders that own company stock include Matthew Kalish, Jason Robins, Paul Liberman, Harry Sloan, Jason Park, R Stanton Dodge, Erik Bradbury, Jocelyn Moore, Steven Joseph Murray and Hany M Nada.
View institutional ownership trends.

How do I buy shares of DraftKings?

Shares of DKNG stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of DraftKings own?

Based on aggregate information from My MarketBeat watchlists, some other companies that DraftKings investors own include NVIDIA (NVDA), Meta Platforms (META), Advanced Micro Devices (AMD), Tesla (TSLA), JPMorgan Chase & Co. (JPM), Palantir Technologies (PLTR) and Salesforce (CRM).

Company Calendar

• Last Earnings: 11/07/2024
• Today: 11/21/2024
• Fiscal Year End: 12/31/2024
• Next Earnings (Estimated): 2/20/2025

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Consumer Discretionary
• Industry: Miscellaneous amusement & recreation services
• Sub-Industry: Entertainment
• Current Symbol: NASDAQ:DKNG
• CUSIP: N/A
• CIK: 1772757
• Web: www.draftkings.com
• Phone: 617-986-6744
• Fax: N/A
• Employees: 4,400
• Year Founded: 2012

Price Target and Rating

• Average Stock Price Target: $50.85
• High Stock Price Target: $62.00
• Low Stock Price Target: $35.00
• Potential Upside/Downside: +16.5%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.89
• Research Coverage: 27 Analysts

Profitability

• EPS (Most Recent Fiscal Year): ($0.88)
• Trailing P/E Ratio: N/A
• Forward P/E Ratio: N/A
• P/E Growth: N/A
• Net Income: $-802,140,000.00
• Net Margins: -9.06%
• Pretax Margin: -10.53%
• Return on Equity: -41.23%
• Return on Assets: -10.27%

Debt

• Debt-to-Equity Ratio: 1.17
• Current Ratio: 1.00
• Quick Ratio: 1.00

Sales & Book Value

• Annual Sales: $3.67 billion
• Price / Sales: 10.48
• Cash Flow: N/A
• Price / Cash Flow: N/A
• Book Value: $1.22 per share
• Price / Book: 35.77

Miscellaneous

• Outstanding Shares: 880,640,000
• Free Float: 429,841,000
• Market Cap: $38.43 billion
• Optionable: Optionable
• Beta: 1.82