TD Cowen Issues Pessimistic Forecast for DraftKings (NASDAQ:DKNG) Stock Price

DraftKings (NASDAQ:DKNG) had its price target dropped by analysts at TD Cowen from $55.00 to $51.00 in a research note issued to investors on Tuesday,Benzinga reports. The brokerage currently has a “buy” rating on the stock. TD Cowen’s target price would suggest a potential upside of 20.74% from the stock’s current price.

Several other research firms have also weighed in on DKNG. Benchmark restated a “buy” rating and set a $44.00 price target on shares of DraftKings in a research report on Tuesday, January 7th. Wells Fargo & Company increased their target price on shares of DraftKings from $47.00 to $52.00 and gave the company an “overweight” rating in a research report on Thursday, October 17th. Barclays lifted their price target on shares of DraftKings from $45.00 to $50.00 and gave the stock an “overweight” rating in a report on Monday, November 11th. Needham & Company LLC reissued a “buy” rating and set a $60.00 price objective on shares of DraftKings in a report on Friday, November 8th. Finally, Macquarie boosted their target price on DraftKings from $50.00 to $51.00 and gave the company an “outperform” rating in a research note on Monday, November 11th. Three analysts have rated the stock with a hold rating and twenty-three have assigned a buy rating to the stock. According to data from MarketBeat.com, DraftKings currently has an average rating of “Moderate Buy” and a consensus price target of $50.92.

DraftKings Stock Up 1.2 %

DKNG stock opened at $42.24 on Tuesday. The firm has a market capitalization of $37.20 billion, a PE ratio of -48.00, a P/E/G ratio of 3.14 and a beta of 1.93. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 1.17. DraftKings has a twelve month low of $28.69 and a twelve month high of $49.57. The stock’s 50 day moving average is $40.40 and its 200-day moving average is $38.30.

DraftKings (NASDAQ:DKNG) last posted its earnings results 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 return on equity of 41.23% and a negative net margin of 9.06%. The firm had revenue of $1.10 billion for the quarter, compared to the consensus estimate of $1.12 billion. Sell-side analysts expect that DraftKings will post -0.93 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Paul Liberman sold 532,095 shares of the business’s stock in a transaction dated Thursday, December 26th. The stock was sold at an average price of $38.30, for a total transaction of $20,379,238.50. Following the completion of the transaction, the insider now owns 68,654 shares of the company’s stock, valued at approximately $2,629,448.20. The trade was a 88.57 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider R Stanton Dodge sold 228,496 shares of the firm’s stock in a transaction that occurred on Monday, December 9th. The shares were sold at an average price of $42.74, for a total transaction of $9,765,919.04. Following the completion of the sale, the insider now directly owns 541,884 shares in the company, valued at $23,160,122.16. This represents a 29.66 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 963,742 shares of company stock worth $38,082,888 in the last ninety days. 48.94% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in DKNG. The Manufacturers Life Insurance Company increased its position in shares of DraftKings by 2.0% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 24,621 shares of the company’s stock valued at $940,000 after purchasing an additional 487 shares during the last quarter. Truist Financial Corp boosted its stake in DraftKings by 3.4% in the second quarter. Truist Financial Corp now owns 122,608 shares of the company’s stock worth $4,680,000 after buying an additional 3,975 shares in the last quarter. Sanctuary Advisors LLC bought a new position in DraftKings during the second quarter valued at approximately $1,530,000. Park Avenue Securities LLC raised its stake in shares of DraftKings by 77.5% during the third quarter. Park Avenue Securities LLC now owns 34,696 shares of the company’s stock worth $1,360,000 after acquiring an additional 15,150 shares in the last quarter. Finally, Diversified Trust Co bought a new stake in shares of DraftKings in the 3rd quarter worth approximately $2,070,000. Institutional investors own 37.70% 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.