Traders Buy Large Volume of Call Options on DraftKings (NASDAQ:DKNG)

DraftKings Inc. (NASDAQ:DKNG) was the target of unusually large options trading on Tuesday. Investors bought 72,898 call options on the company. This is an increase of 37% compared to the typical daily volume of 53,170 call options.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on DKNG shares. Barclays boosted their target price on DraftKings from $45.00 to $50.00 and gave the company an “overweight” rating in a research note on Monday, November 11th. JPMorgan Chase & Co. upped their price objective on shares of DraftKings from $47.00 to $53.00 and gave the stock an “overweight” rating in a report on Friday, December 13th. JMP Securities cut their target price on shares of DraftKings from $52.00 to $50.00 and set a “market outperform” rating on the stock in a research note on Monday, January 6th. Macquarie increased their price target on shares of DraftKings from $50.00 to $51.00 and gave the stock an “outperform” rating in a research note on Monday, November 11th. Finally, Susquehanna lowered their price objective on shares of DraftKings from $56.00 to $54.00 and set a “positive” rating for the company in a report on Wednesday, January 8th. Three research analysts have rated the stock with a hold rating and twenty-three have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $50.92.

Insiders Place Their Bets

In related news, insider R Stanton Dodge sold 228,496 shares of the firm’s stock in a transaction dated Monday, December 9th. The stock was sold at an average price of $42.74, for a total value of $9,765,919.04. Following the sale, the insider now directly owns 541,884 shares of the company’s stock, valued at $23,160,122.16. This trade represents a 29.66 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Jason Robins sold 3,151 shares of the business’s stock in a transaction dated Thursday, November 21st. The shares were sold at an average price of $43.71, for a total value of $137,730.21. Following the transaction, the insider now owns 2,631,033 shares in the company, valued at approximately $115,002,452.43. This represents a 0.12 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 963,742 shares of company stock valued at $38,082,888 in the last ninety days. Company insiders own 48.94% of the company’s stock.

Institutional Investors Weigh In On DraftKings

Large investors have recently bought and sold shares of the business. Baillie Gifford & Co. bought a new position in shares of DraftKings during the 4th quarter valued at $246,765,000. Fred Alger Management LLC increased its position in DraftKings by 46.6% during the third quarter. Fred Alger Management LLC now owns 4,643,852 shares of the company’s stock valued at $182,039,000 after acquiring an additional 1,476,003 shares during the last quarter. FMR LLC lifted its holdings in DraftKings by 14.7% in the third quarter. FMR LLC now owns 6,467,066 shares of the company’s stock valued at $253,509,000 after acquiring an additional 826,626 shares during the period. Mizuho Securities USA LLC purchased a new position in DraftKings in the third quarter worth about $28,028,000. Finally, Blue Whale Capital LLP grew its stake in shares of DraftKings by 59.7% during the 3rd quarter. Blue Whale Capital LLP now owns 1,644,774 shares of the company’s stock valued at $64,475,000 after purchasing an additional 615,011 shares during the period. 37.70% of the stock is currently owned by institutional investors.

DraftKings Price Performance

Shares of DKNG opened at $42.24 on Thursday. DraftKings has a twelve month low of $28.69 and a twelve month high of $49.57. The company has a market capitalization of $37.20 billion, a P/E ratio of -48.00, a price-to-earnings-growth ratio of 3.14 and a beta of 1.93. The firm has a 50 day moving average of $40.40 and a 200 day moving average of $38.30. 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 (NASDAQ:DKNG) last posted its 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 had revenue of $1.10 billion during the quarter, compared to the consensus estimate of $1.12 billion. DraftKings had a negative return on equity of 41.23% and a negative net margin of 9.06%. As a group, equities research analysts anticipate that DraftKings will post -0.93 earnings per share for the current fiscal year.

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.