DraftKings Inc. (NASDAQ:DKNG) Sees Significant Increase in Short Interest

DraftKings Inc. (NASDAQ:DKNG) was the recipient of a large growth in short interest in the month of May. As of May 31st, there was short interest totalling 21,320,000 shares, a growth of 27.2% from the May 15th total of 16,760,000 shares. Based on an average daily trading volume, of 10,650,000 shares, the days-to-cover ratio is presently 2.0 days.

Analysts Set New Price Targets

A number of brokerages recently issued reports on DKNG. Benchmark upped their target price on DraftKings from $50.00 to $52.00 and gave the company a “buy” rating in a research report on Friday, May 3rd. JPMorgan Chase & Co. reissued an “overweight” rating and issued a $55.00 target price on shares of DraftKings in a research report on Thursday, March 28th. Mizuho initiated coverage on DraftKings in a research report on Tuesday, March 26th. They set a “buy” rating and a $58.00 price objective for the company. Barclays increased their price objective on DraftKings from $52.00 to $54.00 and gave the stock an “overweight” rating in a research report on Monday, May 6th. Finally, Truist Financial reaffirmed a “buy” rating and set a $55.00 price objective (up from $45.00) on shares of DraftKings in a research report on Tuesday, February 20th. Two investment analysts have rated the stock with a sell rating, two have issued a hold rating and twenty-five have issued a buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $49.00.

DraftKings Price Performance

NASDAQ:DKNG traded up $3.04 during trading hours on Monday, reaching $41.95. 17,024,424 shares of the company traded hands, compared to its average volume of 11,411,741. The firm’s 50-day moving average is $41.36 and its 200-day moving average is $40.35. The stock has a market cap of $36.46 billion, a P/E ratio of -34.83 and a beta of 1.81. The company has a debt-to-equity ratio of 1.51, a current ratio of 1.34 and a quick ratio of 1.34. DraftKings has a 1-year low of $24.16 and a 1-year high of $49.57.

DraftKings (NASDAQ:DKNG) last announced its earnings results on Thursday, May 2nd. The company reported ($0.30) EPS for the quarter, missing analysts’ consensus estimates of ($0.28) by ($0.02). The company had revenue of $1.18 billion for the quarter, compared to analyst estimates of $1.12 billion. DraftKings had a negative net margin of 13.45% and a negative return on equity of 62.74%. DraftKings’s quarterly revenue was up 52.7% compared to the same quarter last year. During the same quarter last year, the company posted ($0.87) EPS. Equities research analysts expect that DraftKings will post -0.21 earnings per share for the current fiscal year.

Insider Activity at DraftKings

In other DraftKings news, Director Harry Sloan sold 250,000 shares of the company’s stock in a transaction dated Friday, June 14th. The stock was sold at an average price of $38.15, for a total transaction of $9,537,500.00. Following the sale, the director now owns 250,000 shares in the company, valued at approximately $9,537,500. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. In related news, insider Jason Robins sold 200,000 shares of the company’s stock in a transaction dated Wednesday, May 8th. The stock was sold at an average price of $42.67, for a total value of $8,534,000.00. Following the completion of the sale, the insider now directly owns 2,849,215 shares of the company’s stock, valued at approximately $121,576,004.05. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director Harry Sloan sold 250,000 shares of the company’s stock in a transaction dated Friday, June 14th. The shares were sold at an average price of $38.15, for a total value of $9,537,500.00. Following the completion of the sale, the director now directly owns 250,000 shares of the company’s stock, valued at $9,537,500. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 851,450 shares of company stock worth $35,023,584. 48.94% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On DraftKings

A number of large investors have recently bought and sold shares of DKNG. Janney Montgomery Scott LLC grew its holdings in DraftKings by 2.6% during the 3rd quarter. Janney Montgomery Scott LLC now owns 95,313 shares of the company’s stock valued at $2,806,000 after buying an additional 2,371 shares during the last quarter. D.A. Davidson & CO. acquired a new stake in shares of DraftKings during the third quarter worth $294,000. Pathstone Family Office LLC acquired a new stake in shares of DraftKings during the third quarter worth $671,000. Blair William & Co. IL boosted its holdings in shares of DraftKings by 9.3% during the third quarter. Blair William & Co. IL now owns 27,593 shares of the company’s stock worth $812,000 after purchasing an additional 2,359 shares during the last quarter. Finally, Deutsche Bank AG boosted its holdings in shares of DraftKings by 169.1% during the third quarter. Deutsche Bank AG now owns 1,338,075 shares of the company’s stock worth $39,393,000 after purchasing an additional 840,755 shares during the last quarter. Institutional investors and hedge funds 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.