DraftKings (NASDAQ:DKNG) Receives “Overweight” Rating from Morgan Stanley

DraftKings (NASDAQ:DKNG)‘s stock had its “overweight” rating reaffirmed by Morgan Stanley in a note issued to investors on Wednesday, Benzinga reports. They currently have a $47.00 target price on the stock. Morgan Stanley’s price objective suggests a potential upside of 21.79% from the company’s current price.

Several other research analysts have also weighed in on DKNG. Susquehanna boosted their price objective on shares of DraftKings from $47.00 to $48.00 and gave the stock a “positive” rating in a research note on Wednesday, September 4th. Bank of America lowered their price target on DraftKings from $54.00 to $50.00 and set a “buy” rating on the stock in a research report on Monday, July 22nd. Berenberg Bank raised DraftKings to a “hold” rating in a research report on Friday, May 31st. The Goldman Sachs Group decreased their target price on DraftKings from $60.00 to $54.00 and set a “buy” rating on the stock in a report on Monday, August 5th. Finally, Barclays cut their price target on DraftKings from $53.00 to $43.00 and set an “overweight” rating for the company in a report on Monday, August 5th. Three research analysts have rated the stock with a hold rating and twenty-four have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $49.78.

DraftKings Price Performance

NASDAQ:DKNG opened at $38.59 on Wednesday. The stock’s 50-day simple moving average is $35.25 and its 200 day simple moving average is $39.63. DraftKings has a 52-week low of $25.73 and a 52-week high of $49.57. The company has a debt-to-equity ratio of 0.97, a quick ratio of 1.11 and a current ratio of 1.11. The company has a market cap of $33.54 billion, a P/E ratio of -32.70 and a beta of 1.80.

DraftKings (NASDAQ:DKNG) last announced its quarterly earnings data on Thursday, August 1st. The company reported $0.12 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.01) by $0.13. DraftKings had a negative return on equity of 43.11% and a negative net margin of 9.45%. The company had revenue of $1.10 billion for the quarter, compared to analysts’ expectations of $1.11 billion. During the same quarter in the prior year, the business posted ($0.17) EPS. The business’s revenue was up 26.2% compared to the same quarter last year. As a group, sell-side analysts forecast that DraftKings will post -0.31 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Paul Liberman sold 88,441 shares of the business’s stock in a transaction on Monday, August 26th. The stock was sold at an average price of $35.64, for a total transaction of $3,152,037.24. Following the completion of the transaction, the insider now owns 2,498,483 shares of the company’s stock, valued at approximately $89,045,934.12. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. In other news, insider Jason Robins sold 200,000 shares of the 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 transaction, the insider now owns 2,678,082 shares of the company’s stock, valued at $94,402,390.50. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Paul Liberman sold 88,441 shares of DraftKings stock in a transaction that occurred on Monday, August 26th. The shares were sold at an average price of $35.64, for a total transaction of $3,152,037.24. Following the sale, the insider now directly owns 2,498,483 shares in the company, valued at $89,045,934.12. The disclosure for this sale can be found here. Insiders sold 1,220,537 shares of company stock worth $44,784,070 over the last three months. Insiders own 51.19% of the company’s stock.

Institutional Trading of DraftKings

A number of hedge funds have recently added to or reduced their stakes in the stock. LRI Investments LLC acquired a new stake in shares of DraftKings during the first quarter valued at about $31,000. LifeSteps Financial Inc. acquired a new stake in DraftKings during the 1st quarter worth approximately $33,000. Transcendent Capital Group LLC bought a new stake in DraftKings during the 4th quarter worth approximately $26,000. Concord Wealth Partners increased its position in DraftKings by 140.2% in the 1st quarter. Concord Wealth Partners now owns 776 shares of the company’s stock valued at $35,000 after acquiring an additional 453 shares during the period. Finally, Massmutual Trust Co. FSB ADV raised its stake in shares of DraftKings by 117.5% during the first quarter. Massmutual Trust Co. FSB ADV now owns 922 shares of the company’s stock valued at $42,000 after acquiring an additional 498 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.