DraftKings (NASDAQ:DKNG) Stock Price Down 5.2% – Time to Sell?

DraftKings Inc. (NASDAQ:DKNG)’s share price traded down 5.2% during mid-day trading on Tuesday . The company traded as low as $51.27 and last traded at $50.72. 5,697,972 shares were traded during mid-day trading, a decline of 39% from the average session volume of 9,283,876 shares. The stock had previously closed at $53.49.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on the stock. Macquarie raised their price objective on shares of DraftKings from $50.00 to $51.00 and gave the company an “outperform” rating in a research report on Monday, November 11th. Wells Fargo & Company raised their price target on shares of DraftKings from $53.00 to $60.00 and gave the company an “overweight” rating in a report on Tuesday. Morgan Stanley upped their price target on shares of DraftKings from $47.00 to $48.00 and gave the stock an “overweight” rating in a report on Tuesday, October 22nd. Piper Sandler reissued an “overweight” rating and set a $60.00 price objective (up previously from $48.00) on shares of DraftKings in a research note on Tuesday. Finally, Benchmark boosted their target price on DraftKings from $44.00 to $51.00 and gave the stock a “buy” rating in a research report on Friday. Three equities research analysts have rated the stock with a hold rating and twenty-four have given a buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $53.69.

DraftKings Stock Down 3.7 %

The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 1.17. The stock has a 50 day simple moving average of $40.96 and a 200 day simple moving average of $39.03. The firm has a market capitalization of $25.11 billion, a PE ratio of -58.51, a PEG ratio of 3.18 and a beta of 1.93.

DraftKings (NASDAQ:DKNG) last issued its earnings results on Thursday, February 13th. The company reported ($0.28) EPS for the quarter, missing the consensus estimate of $0.07 by ($0.35). DraftKings had a negative return on equity of 41.23% and a negative net margin of 9.06%. As a group, sell-side analysts forecast that DraftKings Inc. will post -0.95 earnings per share for the current year.

Insider Activity

In other DraftKings news, insider Jason Robins sold 3,151 shares of the business’s stock in a transaction on Thursday, November 21st. The shares were sold at an average price of $43.71, for a total transaction of $137,730.21. Following the transaction, the insider now directly owns 2,631,033 shares of the company’s stock, valued at approximately $115,002,452.43. The trade was a 0.12 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, 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 transaction of $9,765,919.04. Following the completion of the sale, the insider now directly owns 541,884 shares of the company’s stock, valued at approximately $23,160,122.16. This represents a 29.66 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 1,163,742 shares of company stock valued at $47,082,888. Insiders own 51.19% of the company’s stock.

Institutional Trading of DraftKings

Institutional investors and hedge funds have recently bought and sold shares of the stock. Highview Capital Management LLC DE raised its position in shares of DraftKings by 1.4% in the 4th quarter. Highview Capital Management LLC DE now owns 42,474 shares of the company’s stock worth $1,580,000 after acquiring an additional 580 shares in the last quarter. Worldquant Millennium Advisors LLC purchased a new stake in DraftKings in the fourth quarter worth $1,584,000. Waverly Advisors LLC raised its holdings in DraftKings by 2.4% in the fourth quarter. Waverly Advisors LLC now owns 42,681 shares of the company’s stock worth $1,588,000 after purchasing an additional 995 shares in the last quarter. Whale Rock Capital Management LLC lifted its position in DraftKings by 9.2% during the fourth quarter. Whale Rock Capital Management LLC now owns 4,971,886 shares of the company’s stock valued at $184,954,000 after buying an additional 416,881 shares during the period. Finally, Tidal Investments LLC boosted its holdings in shares of DraftKings by 14.9% during the 4th quarter. Tidal Investments LLC now owns 20,553 shares of the company’s stock valued at $765,000 after buying an additional 2,660 shares in the last quarter. 37.70% of the stock is currently owned by hedge funds and other institutional investors.

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.