DraftKings (NASDAQ:DKNG) Posts Earnings Results, Misses Expectations By $0.18 EPS

DraftKings (NASDAQ:DKNG) released its quarterly earnings results on Thursday. The company reported ($0.60) EPS for the quarter, missing the consensus estimate of ($0.42) by ($0.18), reports. The firm had revenue of $1.10 billion for the quarter, compared to analysts’ expectations of $1.12 billion. DraftKings had a negative net margin of 9.45% and a negative return on equity of 43.11%. DraftKings updated its FY 2025 guidance to EPS and its FY 2024 guidance to EPS.

DraftKings Stock Up 3.0 %

Shares of NASDAQ DKNG opened at $40.13 on Friday. The business has a 50-day moving average of $37.66 and a two-hundred day moving average of $37.93. The company has a market capitalization of $35.26 billion, a price-to-earnings ratio of -45.09 and a beta of 1.82. DraftKings has a 1 year low of $28.69 and a 1 year high of $49.57. The company has a debt-to-equity ratio of 0.97, a current ratio of 1.11 and a quick ratio of 1.11.

Insider Activity

In related news, insider Paul Liberman sold 88,441 shares of the business’s stock in a transaction that occurred 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 sale, the insider now owns 2,498,483 shares in the company, valued at $89,045,934.12. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. In other DraftKings news, insider Paul Liberman sold 88,441 shares of the firm’s 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 owns 2,498,483 shares of the company’s stock, valued at approximately $89,045,934.12. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Jason Robins sold 200,000 shares of the business’s 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 sale, the insider now owns 2,678,082 shares of the company’s stock, valued at $94,402,390.50. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 1,020,536 shares of company stock worth $39,966,465. 51.19% of the stock is currently owned by insiders.

Institutional Trading of DraftKings

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Moors & Cabot Inc. boosted its position in shares of DraftKings by 2.4% in the 3rd quarter. Moors & Cabot Inc. now owns 28,180 shares of the company’s stock valued at $1,105,000 after purchasing an additional 650 shares during the period. Advisors Asset Management Inc. boosted its holdings in shares of DraftKings by 10.3% in the third quarter. Advisors Asset Management Inc. now owns 31,860 shares of the company’s stock valued at $1,249,000 after acquiring an additional 2,978 shares during the period. Connor Clark & Lunn Investment Management Ltd. grew its position in shares of DraftKings by 238.6% during the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 496,971 shares of the company’s stock worth $19,481,000 after acquiring an additional 350,215 shares during the last quarter. Commerce Bank increased its holdings in shares of 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 acquiring an additional 8,185 shares during the period. Finally, B. Metzler seel. Sohn & Co. Holding AG purchased a new stake in DraftKings in the 3rd quarter valued at $349,000. Institutional investors and hedge funds own 37.70% of the company’s stock.

Analyst Ratings Changes

DKNG has been the topic of a number of research analyst reports. Truist Financial restated a “buy” rating and issued a $50.00 target price on shares of DraftKings in a research report on Wednesday, August 14th. The Goldman Sachs Group decreased their target price on shares of DraftKings from $60.00 to $54.00 and set a “buy” rating on the stock in a research report on Monday, August 5th. Barclays lifted their price target on shares of DraftKings from $43.00 to $45.00 and gave the company an “overweight” rating in a research report on Friday, October 4th. Wells Fargo & Company upped their price objective on shares of DraftKings from $47.00 to $52.00 and gave the stock an “overweight” rating in a report on Thursday, October 17th. Finally, Benchmark reissued a “buy” rating and issued a $44.00 target price on shares of DraftKings in a research report on Monday, October 7th. Three investment analysts have rated the stock with a hold rating and twenty-four have issued a buy rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $50.22.

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.