DraftKings (NASDAQ:DKNG) Sees Strong Trading Volume – Here’s What Happened

DraftKings Inc. (NASDAQ:DKNG) shares saw strong trading volume on Friday . 7,033,961 shares changed hands during mid-day trading, a decline of 31% from the previous session’s volume of 10,250,726 shares.The stock last traded at $38.90 and had previously closed at $38.98.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on DKNG shares. Stifel Nicolaus reissued a “buy” rating and issued a $48.00 price target (down from $50.00) on shares of DraftKings in a report on Monday, August 5th. Mizuho lifted their price target on DraftKings from $54.00 to $62.00 and gave the company an “outperform” rating in a report on Friday, October 18th. UBS Group lifted their price target on shares of DraftKings from $56.00 to $58.00 and gave the company a “buy” rating in a research report on Wednesday, September 4th. Morgan Stanley upped their target price on shares of DraftKings from $47.00 to $48.00 and gave the company an “overweight” rating in a research note on Tuesday, October 22nd. Finally, Bank of America lowered their target price on shares of DraftKings from $54.00 to $50.00 and set a “buy” rating on the stock in a research note on Monday, July 22nd. Three equities research analysts have rated the stock with a hold rating and twenty-four have given a buy rating to the company’s stock. Based on data from MarketBeat.com, DraftKings currently has an average rating of “Moderate Buy” and an average target price of $50.22.

DraftKings Stock Performance

The firm’s 50-day moving average price is $37.66 and its 200 day moving average price is $37.95. 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 $35.26 billion, a price-to-earnings ratio of -45.09 and a beta of 1.82.

DraftKings (NASDAQ:DKNG) last announced its quarterly earnings results on Thursday, November 7th. The company reported ($0.60) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.42) by ($0.18). DraftKings had a negative net margin of 9.45% and a negative return on equity of 43.11%. The firm had revenue of $1.10 billion during the quarter, compared to analyst estimates of $1.12 billion. On average, sell-side analysts anticipate that DraftKings Inc. will post -0.31 EPS for the current year.

Insider Activity

In related 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 of the company’s stock, valued at approximately $94,402,390.50. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. In other DraftKings news, insider Paul Liberman sold 88,441 shares of the stock in a transaction on Friday, October 25th. The stock was sold at an average price of $36.41, for a total transaction of $3,220,136.81. Following the transaction, the insider now owns 1,923,483 shares in the company, valued at $70,034,016.03. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, 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 transaction, the insider now owns 2,678,082 shares in the company, valued at approximately $94,402,390.50. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 1,020,536 shares of company stock worth $39,966,465 over the last three months. Corporate insiders own 51.19% of the company’s stock.

Institutional Trading of DraftKings

Large investors have recently modified their holdings of the stock. Moors & Cabot Inc. raised its stake in DraftKings by 2.4% during the third quarter. Moors & Cabot Inc. now owns 28,180 shares of the company’s stock worth $1,105,000 after acquiring an additional 650 shares in the last quarter. Advisors Asset Management Inc. lifted its stake in shares of DraftKings by 10.3% in the 3rd quarter. Advisors Asset Management Inc. now owns 31,860 shares of the company’s stock valued at $1,249,000 after purchasing an additional 2,978 shares during the period. Connor Clark & Lunn Investment Management Ltd. lifted its position in shares of DraftKings by 238.6% during the 3rd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 496,971 shares of the company’s stock valued at $19,481,000 after acquiring an additional 350,215 shares during the period. Commerce Bank increased its position in DraftKings by 56.0% in the 3rd quarter. Commerce Bank now owns 22,809 shares of the company’s stock valued at $894,000 after buying an additional 8,185 shares in the last quarter. Finally, B. Metzler seel. Sohn & Co. Holding AG acquired a new stake in DraftKings in the 3rd quarter valued at $349,000. 37.70% of the stock is owned by institutional investors and hedge funds.

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.