JMP Securities Forecasts Strong Price Appreciation for DraftKings (NASDAQ:DKNG) Stock

DraftKings (NASDAQ:DKNG) had its target price upped by investment analysts at JMP Securities from $51.00 to $52.00 in a research note issued to investors on Monday,Benzinga reports. The brokerage currently has a “market outperform” rating on the stock. JMP Securities’ target price indicates a potential upside of 29.58% from the stock’s previous close.

Several other equities research analysts also recently commented on the company. Susquehanna raised their target price on DraftKings from $48.00 to $50.00 and gave the company a “positive” rating in a report on Monday, October 7th. Benchmark restated a “buy” rating and set a $44.00 target price on shares of DraftKings in a report on Monday, October 7th. Barclays raised their price objective on DraftKings from $43.00 to $45.00 and gave the company an “overweight” rating in a report on Friday, October 4th. JPMorgan Chase & Co. raised their price target on DraftKings from $48.00 to $54.00 and gave the company an “overweight” rating in a research note on Thursday, September 26th. Finally, Morgan Stanley upped their price objective on DraftKings from $47.00 to $48.00 and gave the stock an “overweight” rating in a research note on Tuesday, October 22nd. Three equities research analysts have rated the stock with a hold rating and twenty-four have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $50.26.

DraftKings Price Performance

Shares of NASDAQ DKNG opened at $40.13 on Monday. The stock has a market capitalization of $35.26 billion, a price-to-earnings ratio of -45.60 and a beta of 1.82. The firm’s 50 day simple moving average is $37.66 and its 200-day simple moving average is $37.91. DraftKings has a 12 month low of $28.69 and a 12 month 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.

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

Insider Transactions at DraftKings

In related news, insider Paul Liberman sold 643,654 shares of the firm’s stock in a transaction dated Wednesday, September 25th. The shares were sold at an average price of $41.24, for a total transaction of $26,544,290.96. Following the completion of the sale, the insider now owns 137,308 shares in the company, valued at approximately $5,662,581.92. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. In other DraftKings news, insider Paul Liberman sold 643,654 shares of the firm’s stock in a transaction that occurred on Wednesday, September 25th. The shares were sold at an average price of $41.24, for a total transaction of $26,544,290.96. Following the sale, the insider now owns 137,308 shares in the company, valued at approximately $5,662,581.92. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Jason Robins sold 200,000 shares of the stock in a transaction dated 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 sale, the insider now directly owns 2,678,082 shares in the company, valued at $94,402,390.50. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 1,020,536 shares of company stock valued at $39,966,465. 51.19% of the stock is currently owned by insiders.

Institutional Investors Weigh In On DraftKings

A number of large investors have recently bought and sold shares of DKNG. Moors & Cabot Inc. increased its stake in shares of DraftKings by 2.4% in 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 during the period. Advisors Asset Management Inc. boosted its stake 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 worth $1,249,000 after buying an additional 2,978 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. raised its position in DraftKings by 238.6% during the third 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 in the last quarter. Commerce Bank raised its position in DraftKings by 56.0% during the third quarter. Commerce Bank now owns 22,809 shares of the company’s stock valued at $894,000 after acquiring an additional 8,185 shares in the last quarter. Finally, B. Metzler seel. Sohn & Co. Holding AG purchased a new stake in DraftKings in the 3rd quarter worth approximately $349,000. Hedge funds and other institutional investors 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.